CGA Emergency Energy Conservation Program Garners Energy Industry Praise; Program Changes Implemented.

Business Editors/Food & Energy Writers

SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 2, 2000

The California Grocers Association Emergency Energy Conservation Program continues to grow and garner praise from the energy industry.

"It is commendable that CGA has implemented the Emergency Energy Conservation Program, to proactively and voluntarily reduce lighting, air conditioning and other electric loads in member stores during this summer's peak loading period," wrote Pacific Gas and Electric Co.'s Beverly Alexander, vice president, Rates and Account Services, in a letter to CGA President Peter Larkin. "Kudos to CGA for your efforts to promote the conservation electric power as Summer 2000 continues to break more than one record in the books."

The California Independent System Operator (ISO) is charged by the State Legislature to manage the flow of electricity along the long-distance, high-voltage power lines that make up the bulk of California's transmission system. It too had high praise for the CGA program.

"The California Grocers Association stores collectively curtailed 100 megawatts worth of electricity repeatedly over the last two months -- each time conserving the equivalent of a power plant serving approximately 100,000 homes," said California ISO President & CEO Terry Winter.

"This was a tremendous help on hot days when ISO operators scrambled to find scarce megawatts to maintain reliability of the power grid," he added. "From an environmental standpoint, this was a great way to help meet the needs of California consumers. From an economic standpoint, this saved an estimated $2 million in energy purchases."

In early August, in a joint press conference with Gov. Gray Davis, CGA unveiled its Emergency Energy Conservation Program to help ease electricity demand during peak usage periods.

The plan calls for participating CGA retail grocery members to reduce their energy consumption by as much as 10 percent when a Stage I Electrical Emergency is issued by the California Independent System Operator.

Even though cooler seasonal temperatures have brought some relief to California's demand on the state's electricity grid, the CGA's Emergency Energy Program will continue with one minor alteration.

When the program was initiated in August, it was determined that due to the uniqueness of the situation in San Diego at that time, that all stores participating in the program in the San Diego Gas and Electric service area would reduce their usage by 10 percent, 24 hours a day, seven days a week and not just during a Stage 1 emergency.

"After evaluating the current energy situation with key retail members in the San Diego area," said CGA President Peter Larkin, "It was determined that our San Diego members would end their around the clock 10 percent power reduction efforts beginning October 1. These stores, like our participating members throughout the state, will now reduce their electricity only when the ISO issues a Stage 1 emergency."

A Stage I emergency is declared any time it is clear that an Operating Reserve shortfall is unavoidable, or is forecast to occur within the next two hours. While the reserve falls below minimum criteria, it is not so far below as to require interruption of service. The emergencies have typically been in effect for approximately 10 hours.

"We applaud those stores in San Diego that went the extra mile to help ease this incredible burden that has been placed on electricity consumers in that area," Larkin added. "While the energy crisis is far from over, we believe, for now, the situation does not warrant our stores continuing the 24/7 program. If the situation should get worse, we will re-evaluate it at that time."

Larkin also praised customers for their support and acceptance of the program.

"We know it was inconvenient at times, but the support and patience shown by customers statewide was phenomenal," he said. "They understood and appreciated the efforts being made to ease the problem."

Larkin encouraged other industry to adopt a similar program as well.

"I think industry in general has a great opportunity to demonstrate its concern for this very critical issue," he said. "This problem is not going to go away anytime soon. We may not have any Stage I alerts for a while due to the changing season, but come next Spring and Summer, we will all be facing this issue again. If we all prepare now, perhaps we can all keep the lights on next summer."

The California Grocers Association is a non-profit, statewide trade association representing the food industry since 1898. CGA represents approximately 500 retail members operating over 6,000 food stores in California and Nevada, and approximately 300 grocery supplier companies. Retail membership includes chain and independent supermarkets, convenience stores and mass merchandisers. The association is recognized as the industry leader in the areas of government and industry relations, public relations, education and communications. CGA maintains its headquarters in Sacramento with a satellite office in Long Beach.