FOR IMMEDIATE RELEASE

Media Contact: Terrie Prosper, 415.703.1366, news@cpuc.ca.gov

PUC COMMENTS ON GOVERNOR'S PLAN
TO REDUCE GREENHOUSE GAS EMISSIONS

SAN FRANCISCO, June 1, 2005 - The California Public Utilities Commission (PUC) today commented on a plan by Governor Arnold Schwarzenegger to reduce greenhouse gas (GHG) emissions to year 2000 levels by 2010; to 1990 levels by 2020; and to 80 percent below 1990 levels by 2050.

"I enthusiastically support the Governor's initiatives concerning this very important topic of climate change," said PUC President Michael R. Peevey. "It is important that California's utilities, as well as businesses in general, demonstrate leadership in reducing their GHG emissions. Through the Governor's initiatives and the steps the PUC has taken, and will continue to take, we will make a real contribution toward reducing the negative impacts of climate change."

Commissioner Susan P. Kennedy added, "By establishing aggressive targets to reduce greenhouse gas emissions in California, Governor Schwarzenegger has added American leadership to the fight against this global threat."

"I congratulate the Governor for taking a leadership role at the state level on climate change and setting clear emission reduction goals," said Commissioner Dian M. Grueneich. "This is a critical first step and the PUC will work closely with the Governor, other agencies, and stakeholders to embark upon additional steps we can take to further these climate change initiatives."

"Governor Schwarzenegger again has demonstrated real leadership in the area of reducing greenhouse gas emissions," said Commissioner John Bohn. "I look forward to working with the California Environmental Protection Agency and the Governor in reaching these goals."

To address the issue of climate change, the PUC previously announced that it would take a broad look at the issue of GHG emissions from a business and key stakeholder perspective. To that end, the PUC has adopted and continues to pursue aggressive energy efficiency and renewable energy policies. The PUC requires the energy utilities to assess the financial risk associated with GHG emissions, and is assessing options to establish a GHG emissions reduction target for the energy utilities.

In addition, the PUC is a member of the California Climate Action Registry, a non-profit organization recognized as a standard-setter for tracking and reporting GHG emissions - the main contributor to global warming, on an annual basis. As a participant in the Registry, the PUC voluntarily measures and reports all of its GHG emissions. All of the PUC regulated energy utilities are members of the Registry, as is SBC. The Commission expects that other companies under its jurisdiction and across industry lines will participate in measuring GHG emissions as well.

In an effort to raise awareness of climate change and identify solutions, the PUC held a groundbreaking en banc in February to identify best practices in reducing emissions for all PUC regulated companies (electric, natural gas, telecommunications, water, and transportation). Presenters included representatives from the academic, research, business, insurance, shareholder activist, and state government organizations.

For more information on the PUC, please visit www.cpuc.ca.gov.

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