SVMG Energy Actions and Accomplishments

To Principal Officers Energy Committee members, Liaison Representatives and
Environmental Committee members:

It has been about a year since we began working together to advocate for a
healthy energy policy and future for California employers, employees and
their families. We have been meeting weekly (at least). It's been a great
challenge to understand the issues, determine our principles, goals and
objectives, build key partnerships and learn to advocate effectively in a
difficult and politicized environment. We started out in the frying pan,
skipped the fire and went straight into the furnace (via the crucible) and
have remained there to the present. Our learning curve has been steep and
bumpy at times. Despite some frustrations and setbacks, I am happy to say
that there is much to celebrate and recognize as successes for SVMG. We
have been involved in many sectors--Conservation, Smart Load Management,
advocacy for clean new generation and transmission, smart policy and
communications in all these areas. Below is a brief presentation I made
to the SVMG board of directors this past Wednesday presenting our return on
investment and highlighting accomplishments for the dedicated efforts of so
many great people and companies. Feel free to respond. We welcome your
input and feedback.

I wish to especially recognize the efforts of your energy committee leaders
in this unprecedented effort: John Redding of General Electric and K.C.
Mares (formerly Sun, now Exodus). They have represented you with skill,
wisdom and more than a dash of panache. In upcoming messages we will be
recognizing other key leaders who serve you so ably. Please feel free to
express your appreciation to them. (kc.mares@exodus.net;
john.redding@gene.ge.com)

One additional item. I want you to know that SVMG has a unique opportunity
and role in the state. We have been working daily here in the capital for
the last week representing Silicon Valley with a broad coalition of
stakeholders and legislators to find a workable solution to the financial
segment of the energy crisis. I am encouraged by the committment to a
solution and the attitude of cooperation. Quite a contrast to what we
usually experience. Stay tuned. We will keep you informed on the progress
as
we are able.

Grateful for your partnership in Energy,

Justin Bradley
Director of Energy Programs

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ROI - SVMG Energy Actions and Accomplishments

Policy
? Established blackout notice plan with ISO working with Governor - 60
minutes, increased access to information
? Curtailment Program Advocacy with PUC - OBMC plan available to exit
blackout blocks
? Advocated with BAAQMD - Unlimited hours of backup generators during
blackouts

Projects
? Established criteria to assess crucial infrastructure developments
o Metcalf Energy Center - Approved by SJ CC 10-1
o Los Esteros Transmission Project - Approved by PUC
o Tri-Valley Transmission Project - Pending
o Gilroy Peakers Project - Approved by CEC
0 Russel City Energy Center - Pending

Appointments
? Successfull advocacy for Nora Brownell's appointment to the FERC
? Carl Guardino on ISO Board of Governors

Partnerships with:
? CEC to fund load management consulting and notification (over $3M)
? San Jose, Santa Clara County, Cities Association - Summit I and II
o Over 200 participants from all sectors
? NRDC to advocate and provide information on Conservation, load management
o SB5X approved - $850 M for various programs
? Bay Area Economic Forum - Foundational Study on Economic impacts to Bay
Area
? Area Council and Others on Energy Conservation

Information and Tools for Energy Success
? SVMG Energy Summit - First major trade group to highlight energy crisis -
Over 180 participated
? Energy Tools Conference at Oracle - over 200 participated
? Web casts and website clearinghouse of conservation and dozens of load
management programs and incentives
? E-energy conservation Campaign - over 5 million employees provided energy
information

Communication
? Voice of Silicon Valley on energy through local, regional, national and
international media

Advocacy on all levels of Policy
? Federal - Energy Reliability Initiative - $ Billions in reliability
investment funding
? State - With Governor Davis, Senate, Assembly, CEC, PUC, ISO, Air Board on
all levels of Energy Policy
? Local - On energy infrastructure