FOR IMMEDIATE RELEASE

PUBLIC UTILITIES BOARD TO CONSIDER GENERATION REPORT

ALAMEDA, Calif., October 12, 2004 - At its regular meeting Monday evening, the City of Alameda Public Utilities Board will consider acceptance of the final draft report, "Investigation into Municipal Solid Waste Gasification for Power Generation." In the transmitting Administrative Report, Alameda Power & Telecom staff recommends acceptance of the report and deferral of further immediate efforts related to the technology.

According to utility spokesman Matt McCabe, "We consider the investigation to have been a valuable undertaking and the process to have been a success. As leaders in the use of clean and renewable resources, we have an obligation to look into promising technologies in meeting Alameda's power supply needs. At the same time, we must be prudent in adopting technologies, as we won't put Alameda's leading reputation at risk."

Because the investigation and resulting report were authorized by the Public Utilities Board, the Board must act formally to conclude the process.

Alameda Power & Telecom's commitment to the use of clean power is evidenced by the utility's current power-generating sources. Over 90% of the power consumed in Alameda comes from renewable resources, including geothermal and hydroelectric facilities. In contrast, the State of California has set a goal that 20% of the state's total energy will be derived from renewable sources by the year 2017.

McCabe explained, "The investigation of the MSW technology has been only one part of a much broader, continuing effort to secure environmentally responsible power supplies. It has helped set direction for our ongoing work, and components of this investigation will be used in shaping future recommendations. Ultimately, we will commit only to those technologies that are certain to be in accordance with community goals. Also, we stand ready to share what we've learned with other utilities, the industry, and regulatory authorities."

He continued, "Power supply accounts for well over half of our budget for the electric utility. That fact alone explains the importance of our continued focus on this aspect of operations. But it's now projected that Alameda's demand will exceed our supply in about 7 years, and we need to secure supplies. Our forward thinking kept the lights on and electric rates low during the state energy crisis of a few years back, and we'll continue to meet our obligation to serve Alameda."