San Mateo County Community College District Saves $1 Million Annually Through Energy Efficiency, Cogeneration

Equipment Upgrades Cut District's Energy Costs in Half, Extend Life of Infrastructure; PG&E to Present $883,000 Rebate Check at District Board Meeting This Evening

SAN MATEO, Calif.— When the San Mateo County Community College District first went looking for energy savings in 2000, it had no idea just how valuable the search would be.

The district, which includes the College of San Mateo, Skyline College and Caņada College, was spending about $2.2 million on energy costs each year - - enough electricity and natural gas to serve 2,500 homes. In addition, it was facing the possibility of having to replace much of the infrastructure built in the 1960s - such as heating and cooling systems - that was nearing the end of its useful life. Taking this step would have cost more than $40 million.

Fortunately, the district chose another, more cost-effective route: Upgrade selected aging equipment rather than replace entire systems outright. Now, after dozens of small but highly efficient improvements installed at 46 buildings on three campuses, the district has modernized its infrastructure for less than $21 million - about half the alternative cost. And the district reduced its energy costs by more than $1 million annually, alleviating pressure on its operating budget.

Chevron Energy Solutions, a ChevronTexaco (NYSE: CVX) subsidiary, developed, engineered and installed the upgrades for the district, including energy-efficient lighting and electrical systems, boiler improvements, chilled water systems, air handling and conditioning systems, pipe and pumping systems, energy management controls and real-time metering. In addition, the company installed two new cogeneration units that will reduce the district's need for purchased power.

“Finding these energy savings was like striking gold,” said Ron Galatolo, district chancellor. “Through the upgrades we've installed, the district has been able to reduce operating costs and renovate much of its infrastructure at a much lower cost than we originally expected.”

The energy efficiency improvements, funded by utility rebates and voter-approved bonds, will reduce the district's annual electricity usage by 22 percent, or more than 2.8 million kilowatt-hours per year. They also will lower natural gas use by 15 percent, or about 135,000 therms per year. The balance of the energy savings will come from the cogeneration systems installed at Skyline College and the College of San Mateo. Together these savings translate to avoided local electric utility emissions of about 3,200 tons of carbon dioxide annually, the equivalent of planting more than 900 acres of trees.

“While conserving energy and reducing costs, these installations also benefit the environment,” said Jim Davis, president of Chevron Energy Solutions. “In fact, making energy efficiency and power generation improvements is one of the most cost effective ways to extend America's energy resources.”

The improvements will be recognized at a meeting of the district board this evening, where PG&E will present a ceremonial rebate check for $883,957 towards the cost of the two cogeneration units installed at the College of San Mateo and Skyline College. Through PG&E's self-generation incentive program and energy efficiency programs, the district is on track to receive nearly $1 million in rebates for its energy efficiency work and the cogeneration systems.

“Cogeneration is a great example of an efficient power source, because it recovers waste heat that can then be used for heating or cooling purposes,” said Beverly Alexander, vice president of customer satisfaction at PG&E. “Pacific Gas and Electric Company congratulates the San Mateo County Community College District for its foresight to install cogeneration and enhance energy efficiency.”

About 90 percent of the efficiency improvements have been installed to date. The remaining work, which will include new digital control systems in buildings throughout the district, will be completed in 2005.

Chevron Energy Solutions partners with institutions and businesses to improve facilities and increase their efficiency, reduce energy expenses and ensure reliable, high quality power for critical operations. Its customers include federal government agencies; state, county and municipal government agencies; schools, colleges and universities; and many other public institutions and commercial and industrial businesses. With more than two dozen locations nationwide, the company maintains in-house engineering, monitoring and project management capabilities, provides financing options and delivers solutions designed to address each customer's particular needs without promoting specific vendors, products or commodities.

For more information about the San Mateo County Community College District, Chevron Energy Solutions and PG&E, please visit their web sites at www.smccd.net, www.chevronenergy.com and www.pge.com

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10/27/04

Contacts:
Barbara Christensen (SMCCCD) 650-574-6510
Diane Sable (Chevron Energy Solutions) 415-733-4629
Paul Moreno (PG&E) 415-973-5930

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