DWP's Board President Says ``We'll Keep the Lights On''.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Feb. 14, 2001

LA DWP's Board President Kenneth T. Lombard Says There Will Be NO

Rate Increase; SCRPC Chairperson Reports That Minority Businesses

Generated $3.9 Billion Last Year

"I take no responsibility if the lights go out here at the LA Convention Center," LA Dept. of Water and Power's (DWP) board of commissioners President Ken Lombard jokingly told about 500 attendees of the 32nd Minority Business Opportunity Day (MBOD) (www.mbod.org). "But just in case the lights go out I brought along some workers from the DWP." Lombard is also president of Magic Johnson Theaters.

The two-day event is called "e-Commerce Trade Fair marketplace to the world!" and is produced by Southern California Regional Purchasing Council (SCRPC) (www.scrpc.org), Los Angeles, a nonprofit (501(c)(3)) California Public Benefit Corporation. Established in 1975, SCRPC represents the local corporate outreach to minority enterprises in Southern California.

While the rest of the Golden state struggles to keep the lights on during this California energy crisis, the DWP provides all of its surplus energy to California.

"We are not out of the woods yet," said Lombard. "We're making headway, and the DWP is really the leader in that effort in a lot of ways, and is a great example of what can happen during an energy crunch by not being forced to pass on rate increases."

Lombard also characterized the energy crisis as an example of how DWP has been a good neighbor in a tight, competitive energy market where the two other utilities, southern California Edison and Pacific Gas and Electric companies, are in a crisis.

"As long as the DWP is around there will be NO rate increase in the city of LA," said Lombard. However, he cautioned: "Conservation is a very, very important part of what we do. DWP and its customers have got to continue to be smart because we have examples of what can happen when we just begin to take situations like our power and water for granted, so everyone needs to think about our neighbors, who are not so well off."

Earlier, SCRPC Chairperson William C. Cook, WellPoint Health Networks, told the luncheon: "Last year minority businesses generated $3.9 billion in Southern California. And that's only 30 percent of the 265 corporations reporting in the SCRPC's purchasing region of San Diego to Fresno."

DWP's Lombard said the nation's largest municipal utility has its work cut out for it in providing minority business opportunities: "We've got numbers that we try to achieve, but we're nowhere near where we should be. We actually need the help of SCRPC as we try to ensure that as the DWP spends $5 to $7 billion over the next 10 years that we have the appropriate level of minority representation."

Marcial E. Robiou, president, The Business Consortium Fund Inc., who led today's workshop, "How to access special financing for doing business with Corporate America," said credit companies are tightening up, forcing minority businesses to hunt for alternative funds.

As to Robiou's reaction to Alan Greenspan's economic forecast this week that we're "not in a recession yet," he said: "It depends upon what economic reports you listen to. Statistics reveal there is a greater tightening of credit availability at all sectors of the economy. With that shrinkage, companies like ours become more viable for financing."

The Business Consortium Fund provides working capital nationwide in a series of products in venture capital. "As a company grows, these kinds of forums like the two-day trade fair create opportunities for economic activity," explained Robiou.

Thursday, Feb. 15, 2001, the second day of the MBOD Trade Fair at the West Hall of the LA Convention Center will feature more than 600 minority suppliers, and more than 100 corporate buyers' displays and booths. Doors open at 9 a.m. Conference tickets are $65. For further information and minority business opportunities, visit SCRPC's Web site at www.scrpc.org.