For Immediate Release

ALAMEDA POWER & TELECOM
TO LAUNCH NEW CABLE TELEVISION
AND INTERNET SERVICE

ALAMEDA, Calif., July 2, 2001 -- In November 1998, the citizens of Alameda voted to allow their municipally owned electric-utility to offer telecommunications services. Now, after nearly three years of thorough planning and preparation, Alameda Power & Telecom is ready to provide cable television service in certain areas starting on July 5. High-speed Internet service will soon follow.

"For more than 100 years, the citizens of Alameda have had the benefit of outstanding service and stable rates for electric power," said Sebastian Baldassarre, president of Alameda's Public Utilities Board. "Now we're prepared to provide the same levels of service for cable television and high-speed Internet access."

He adds, "One of the real benefits to the citizens is the fact that Alameda Power & Telecom contributes a substantial amount of money each year to the City's general fund, which helps support Alameda's unique quality of life. This means all Alamedans benefit from our success."

Alameda Power & Telecom has contracted with Vectren Communications Services (VCS) to install and initially operate the new cable television and Internet systems. Based in Evansville, Ind., VCS provides broadband telecommunications services for municipalities around the country.

"We've been installing the new fiber optic service since January," said Trudy Ribeiro, VCS Alameda operations manager. "It's a complex system, but we are making significant progress."

According to Junona Jonas, general manager of Alameda Power & Telecom, service will be available to the first phase of customers on July 5. She explained, "We're launching our new services on the 4th of July, with special family events throughout the day. After the Mayor's 4th of July Parade, we will give Alameda citizens the opportunity to sign up to become charter members of our new cable television service at the Fun Fair at Washington Park, as well as the USS Hornet. We are also sponsoring a variety of programming entertainment for the whole family on the USS Hornet from 3 p.m. to 9 p.m. on the Hangar Deck."

The first neighborhoods to receive the new cable television service will be the central and westerly portions of the main island, generally from Atlantic Avenue south to the Bay between Constitution Way and Main Street, as well as portions of the Fernside area east of Park Street from the Estuary south to San Jose Avenue. Ribeiro stated, "We're starting at the two ends of the main island and working our way to the middle. All Alameda households, including Bay Farm Island residents, are scheduled to have access to the new service by the end of 2002."

"Alamedans who sign up for service at the 4th of July events or the Park Street Art and Wine Faire in August will become Charter Members," said Jonas. "Charter Members will receive special discounts from Alameda merchants and a newsletter that will keep them up to date on development of the system and programming highlights."

"We've structured the new service to provide Alameda residents with a wide range of choices," explained Jonas. "Our Basic service starts at $9.99. Digital service packages range from the Lieutenant package, which offers 178 channels for $43.99, to the Admiral package, which offers 204 channels for $73.99. After studying the market, we have structured our pricing to be less than the alternatives."

As the infrastructure installation is completed, residents will be notified neighborhood-by-neighborhood that the cable television service is available.

People interested in learning when construction will begin in their neighborhood can call 748-3900 and talk to an Alameda Power & Telecom customer service representative.