Governor Gray Davis has asked that we apprise Member Companies of the
Silicon Valley Manufacturing Group, and our regional and statewide business
colleagues, on the ways that employers can participate in conservation and
energy-efficiency programs that save power and money.

PLEASE NOTE that the Governor has recently signed into law a number of ways
that employers can participate to save money.  I hope you will forward this
to the appropriate person in your company to take advantage of this
program - and to help our State avoid rolling blackouts this summer.

Thank you very much.

Sincerely,

Carl Guardino


CALIFORNIA BUSINESSES: MEETING THE ENERGY CHALLENGE


GENERAL HELP NUMBERS FOR BUSINESS:

For all Energy Efficiency Rebate Programs:  California Energy Commission:
1-800-232-4685 or 1-800-555-7794

Business Energy Help-line (M-F 8-5) (916) 445-9699


ENERGY EFFICIENCY AND CONSERVATION PROGRAMS

* 20/20 Energy Rebate: Residential, commercial, and industrial customers are
eligible for this voluntary program which will provide rebates to customers
who reduce their summer 2001 electricity usage.  Customers will receive a
20% rebate on their summer electric bill if they cut back their electricity
use by 20% over last summer's level. (Direct access customers are not
eligible.)

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Incentives for Efficient Lighting (also offered by Municipal Utilities):
Incentives are to encourage the purchase and use of "Energy Star" lighting
fixtures, when applicable. The program also offers incentives and assistance
with installation of lighting control technologies, such as dimming, timers,
and occupancy sensors, which provide more peak demand reduction in
commercial settings.

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Low-energy usage building materials: California's commercial buildings
account for 36% of the state's annual electricity use.  During peak times,
commercial buildings use 11% of the state's electricity for lighting and 15%
for air conditioning. Funds will be used to identify and buy-down the cost
of energy measures, such as "white roofs," used to retrofit commercial
buildings for energy efficiency.

Contact: Scott Matthews CEC website and 800 number
www.energy.ca.gov/peakload; 1-800-555-7794

* Oil and Gas Pumping Efficiency Projects: Incentives are provided for
high-efficiency pump and motor retrofits for oil and gas producers and
pipeline operations.

Contact: Julie Fitch (415) 703-2776
http://www.cpuc.ca.gov/static/industry/electric/energy+efficiency/programdes
criptions.htm

RENEWABLE ENERGY:

* Emerging Renewable Account: Provides rebates for the purchase and
installation of solar energy systems up to 10 kW (small business).
Administered by the CEC.

Contact: Sandy Miller CEC website and 800 number
www.energy.ca.gov/peakload; 1-800-555-7794

* Renewable Loan Guarantee Program: Loan guarantees to purchase and install
renewable energy systems, administered through the California Technology
Trade and Commerce Agency.

Contact: Al Salazar (916) 323-8308

* Solar Tax Credit: The Governor has proposed a new solar credit for the
purchase and installation of solar energy systems between 10 kW and 200 kW
for the 2001 through 2003 tax years. The credit would equal 50 percent of
the net cost of the system. This proposal is in SB 17X (Brulte).

Program has not yet been enacted legislatively.
Contact Technology Trade and Commerce Agency:
Business Energy Help-line (M-F 8-5) (916) 445-9699 or
Contact the Franchise Tax Board (800) 852-5711

* Large Nonresidential Standard Performance Contract program: This program
helps businesses with monthly peak demands of 500 kW or more replace
inefficient equipment of a variety of types (e.g., refrigeration, air
conditioning, and ventilation).

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Small Business Standard Performance Contract program: This program is the
small-business counterpart of the large program described above. It is
focused on small businesses (with peak demands under 500 kW per month) and
also offers financial incentives for equipment replacement, after energy
savings are verified.

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Express Efficiency program: This program offers prescribed rebates for
specific energy efficiency measures to small businesses (peak demand under
500 kW). Rebates are available for lighting, air conditioning,
refrigeration, food service, and agricultural efficiency measures. Rebates
for specific equipment are paid up front and only require a simple
application process.

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Business Energy Guide: This publication provides energy efficiency
guidance for business

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

DEMAND REDUCTION PROGRAMS FOR BUSINESS

INVESTOR-OWNED UTILITY (IOU) INTERRUPTIBLE PROGRAMS:

* Voluntary Demand Response Program (VDRP): This is a voluntary bid-based
program for the commercial sector that pays $350 a megawatt hour to
companies dropping loads either the day of or the day before load relief is
needed.  This program is open to customers who can curtail at least 15% of
load, with a minimum load drop of 100kW.

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* Optional Binding Mandatory Curtailment Program (OBMC): The program exempts
participants from rotating black-outs if they can reduce the load on their
entire circuit by the required amount (5 to 20%) for the entire duration of
every rotation outage (outages are usually for one hour).

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

* New Base Interruptible Program (BIP): This program limits interruptions to
one 4-hour event per day, 10 events per month, and 120 hours per year and
provides a $7 per kW-month credit to participants.  Alternatively, a $6 per
kW penalty will be imposed for consumption in excess of firm service load.
This program is open to customers who can commit at least 15% of load, with
a minimum of 100kW per event.

SCE website and 800 number
http://www.sce.com/002_save_energy/index.shtml; 1-800-736-4777

PG&E website and 800 number
http://www.pge.com/003_save_energy/003b_bus/index.shtml; 1-800-468-4743

SDG&E website and 800 number
http://www.sdge.com/efficiency/index.html; 1-800-411-SDGE

INDEPENDENT SYSTEM OPERATOR (ISO) INTERRUPTIBLE PROGRAMS:

* Demand Reduction Program (DRP): This program will pay customers a monthly
reservation payment of $20,000/MW/month to be available on weekdays between
11:00 AM and 7:00 PM from June 1 through September 30 to curtail at ISO
request, and will additionally receive $500/MWh for curtailed demand.  This
program is open to customers with a minimum aggregated load bid of 1 MW.
Total curtailment time is limited to 24hr/month.

Contact: Don Fuller (916) 351-4445 <http://www2.caiso.com/clientserv/load/>

* Discretionary Curtailment Program (DLCP): This program is similar to the
VDRP.  It is a voluntary program that will pay customers a similar incentive
to the VDRP to curtail load when called upon by the ISO.  This program is
open to customers with a minimum aggregated load of 1 MW.

Contact: Don Fuller (916) 351-4445 <http://www2.caiso.com/clientserv/load/>

METERING AND OTHER DEMAND-RESPONSIVE SYSTEMS

CALIFORNIA ENERGY COMMISSION (CEC) PROGRAMS:

* Time-of-Use Meters (CEC and IOUs): Businesses with loads over 200 kW per
month will receive meters that will enable them to better track and manage
their energy use and participate in demand reduction programs.

Contact: Don Kazama CEC website and 800 number
www.energy.ca.gov/peakload; 1-800-555-7794

* Demand Responsive Building Systems: This program provides grants to
businesses to reduce demand in commercial buildings.  This technology
reduces electricity demand during peak periods by automatically raising
thermostats, dimming appropriate lighting and reducing the electricity use
of other building systems.

Contact: Scott Matthews CEC website and 800 number
www.energy.ca.gov/peakload; 1-800-555-7794

* Innovative Peak Load Reduction: This program takes full advantage of the
innovations of the private sector to generate innovative solutions to reduce
peak demand. Grants will be awarded to businesses for efficiency projects
including, but not limited to, lighting and cooling efficiency improvements,
solar cooling, building energy management controls, electric generation from
landfill gas, and solar systems.

Contact: Scott Matthews CEC website and 800 number
www.energy.ca.gov/peakload; 1-800-555-7794

MORE ENERGY SAVING PROGRAMS AND TIPS:

* Inspectors from private firms called ESCOs (Energy Service Companies) can
audit your building, identify how you can reduce energy costs, specify the
equipment needed, finance the project, install the equipment and then
guarantee that it will operate properly. Generally, the ESCO shares the
financial risk associated with the project and in return keeps some of the
savings on your energy bill. Call your utility company for more details.

Technology Trade and Commerce Agency
* Business Best-practices web site: http://commerce.ca.gov/energy

* Business Energy Help-line (M-F 8-5) (916) 445-9699

GOVERNOR'S RATE PROPOSAL:

The Governor's proposal allocates the same percentage rate increase to
residential and to commercial/industrial customers and makes changes only to
businesses' current rate structures.  Customers on time-of-use rates, as
well as those who are not, would receive the same percentage increase.
Time-of-use increases would be allocated only to the peak and mid-peak
rates, in an effort to encourage more intensive conservation at times when
it is most needed. The Governor also supports a direct access option for
business customers that ensures the financial stability of the bridge loan
and revenue bonds that are needed to back the state's power purchases.






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