press release

Chevron Press Release - Albertson's Partners With Chevron Energy Solutions

SAN FRANCISCO, Calif., June 27, 2001 -- Chevron Energy Solutions L.P. (CES), a subsidiary of Chevron Products Co., today announced that it is installing for Albertson's Inc., at five California distribution centers, a unique application of high-efficiency lighting and motion-sensor technologies that may set a new standard for warehouse electricity management. The application, developed by CES using proven technologies, will improve lighting quality and efficiency and automatically control when and where light is used, reducing electricity consumption by 25 percent on average.

"Albertson's and Chevron Energy Solutions are to be commended for doing their part to reduce electricity consumption in California," said California State Assemblyman Tim Leslie (R -- District 4). "Energy conservation and efficiency are an important part of the solution to California's energy crisis, and company efforts like theirs are setting a good example for others to follow."

Albertson's has contracted with Chevron Energy Solutions to replace or retrofit more than 11,000 lighting fixtures at two Southern California and three Northern California distribution centers, located in Brea, La Habra, Roseville, San Leandro and Vacaville. Total energy savings from the installations are projected at more than 17 million kilowatt-hours per year, enough energy to serve about 1,700 households annually.

"This is another innovative step Albertson's has taken to reduce our overall energy demand in California at this critical time," explained Scott Moore, Albertson's director of energy management and procurement. "Just as important, by combining technologies in new ways, this project demonstrates that distribution facilities can enhance operations and lower energy consumption simultaneously."

The new fixtures, which include T-5 fluorescent lamps, will replace high-pressure sodium lamp fixtures that have been operating around the clock. In addition to emitting better-quality light, the more efficient T-5s consume about 20 percent less electricity and can be turned off automatically when not in use, resulting in significant savings -- in some cases as much as 40 percent of the facility's power usage.

"We're pleased to be able to deliver Albertson's a very cost-effective solution that improves its lighting systems and helps reduce the demand on California's transmission grid," said Jim Davis, president of Chevron Energy Solutions. "With the prospect of continued electricity supply shortages in the West, we're finding that many more businesses and institutions are looking for ways to manage and conserve energy, improve efficiency, and reduce their draw on the transmission system."

Based in San Francisco, Chevron Energy Solutions was created in July 2000 to deliver comprehensive energy conservation, energy efficiency and energy management services to businesses and institutions nationwide. Its customers include major companies in the hospitality, retail products manufacturing and energy industries; colleges, cities and government agencies; and a growing roster of high-tech manufacturers and other businesses that require continuous, high-quality power. Chevron Energy Solutions is a subsidiary of Chevron Products Co., one of the largest refiners and marketers of petroleum products in the United States and an operating unit of Chevron Corp.

Albertson's is one of the largest retail food and drug chains in the United States, operating more than 2,500 stores in 36 states.

For more information about Chevron Energy Solutions and Albertson's, please visit our web sites at www.chevronenergy.com and www.albertsons.com.

Updated: June 2001