FOR IMMEDIATE RELEASE

CABLE, ELECTRIC RATES
STAY LOW IN ALAMEDA

ALAMEDA, Calif., January 5, 2006 - Despite rocketing costs for similar services across the state, Alameda Power & Telecom customers can expect cable television, Internet, and electric rates to remain as they are.

"While our primary cable television competitor has put yet more rate hikes in place, we're continuing to hold the line", pointed out Public Utilities Board President Ann McCormick. "On the electric side, once again, Alamedans won't be falling victim to the vagaries of the market. We have our own long-term renewable resource investments that continue to serve us well".

Alameda Power & Telecom General Manager Valerie Fong explained, "We're getting calls from customers who've heard recent news stories and are concerned. It's great that we can give them fewer things to worry about".

In November 2005, Comcast Corporation formally notified the City of Alameda that it would be raising its rates for many cable television packages effective January 1, 2006. Now that these increases are in place, the savings for Alameda Power & Telecom cable television customers range from 11% to almost 30%!

The Pacific Gas and Electric Company announced that their residential rates would increase by approximately 11% with the New Year. At the close of 2005, Alameda Power & Telecom residential electric rates already were 8.4% below those for communities across the Estuary. Obviously, Alameda Power & Telecom customers will enjoy even greater rate advantages in 2006.

"Our customers should be aware that we are in a period of higher energy use in Alameda", General Manager Fong continued. "Unlike most other utilities across the State, we are a winter-peaking utility. We consume more electricity in the winter months than during other times of the year".

Board President McCormick noted, "These significant savings are just part of the story of how these municipal services continue to benefit our community. In addition to our remarkably lower rates, the City itself will realize a revenue stream of approximately $5 million during this fiscal year, including a direct transfer of $2.5 million to the City's General Fund, as a result of Alameda Power & Telecom operations. Our customers also enjoy singularly responsive, high-value service and local control. Speaking specifically on our power side, we've got one of the best environmental records of any utility, anywhere. Alamedans simply get a better deal all the way around".