NEWS INFORMATION

ELECTRIC, TELECOMMUNICATIONS
RATES ADJUSTED

ALAMEDA, Calif., July 21, 2003 - The Public Utilities Board, at its regular meeting this evening, approved revised rates for most electric and telecommunications services. As a result, the typical residential electric customer will see a rate change of approximately 2%, while telecommunications customers will see a rate change of approximately 5%.

"Its important to note that, on the electric side, this is the first residential rate change in well over 7 years," said Marketing Manager Bill Garvine. "This will be our second cable television rate change to recover increased programming costs, but in all cases, were staying well below the competition."

Rates for Alameda Power & Telecom's Internet service, AlamedaNET, when taken with cable television services, did not change.

The average residential electric customer in Alameda consumes approximately 341 kilowatt-hours per month during the summer months (May through October) and will pay $39.92, or approximately $.62 more, exclusive of taxes. Concurrent with the adoption of new electric rates for the residential sector, the Public Utilities Board also implemented new rate schedules for the commercial sector.

Roughly half of all cable television customers subscribe to expanded service and will pay $34.48, or $1.50 more per month, exclusive of taxes. Subscribers to high-value programming and movie packages will see adjustments according to their level of service.

A few AlamedaNET customers, those taking the service as a stand-alone product, will see an increase of $2.04.

Alameda Power & Telecom residential electric rates were last adjusted in April 1996. "Changes to commercial rates during that period have been minimal, as well," added Garvine. "Cable television rates are driven primarily by programming contracts that are subject to annual revision."

Both electric and telecommunications rates are designed to cover the actual cost of service, provide a return to the City, and be competitive with both those in neighboring municipalities and of private providers. While Alameda Power & Telecom rates must recover these costs, they do not need to include a return on private investment and, as a result, are highly competitive.

The majority of electric customers, about 90%, are residential accounts. By comparison, 341 kilowatt-hours would cost the residential customer $40.46, some $.54 more, using the rates of neighboring areas. Alameda Power & Telecom commercial customers also enjoy a similar, significant advantage over their counterparts across the Estuary. Alameda electric consumers have enjoyed lower rates on a consistent basis for well over the past 20 years.

It is estimated that Alameda Power & Telecom cable television customers will save between 3% and 15%, depending on their level of service. Garvine explained the timing and nature of the adjustments. "Annually, we undertake a rate analysis in support of our Fiscal Year budget process. That budgeting process has just concluded, and these revised rates are a result of outcomes of that process.

"Among other major rate-setting considerations, in addition to meeting our costs and providing a return on Alameda's investment, we strive to ensure equity among the different types of customers and rate stability over the long term."

The revised electric become effective August 1, while the revised telecommunications rates become effective October 1, allowing for different public notification requirements.

Copies of the new rate schedules are available by calling Alameda Power & Telecom during regular business hours at 748-3900.

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