press release

Delivering Clean Energy: Chevron, U.S. Postal Service Launch Unique Alternative Power System, Efficiency Upgrades at Major Mail Centers

Energy-saving installations at two of California's largest mail-processing facilities will halve power purchases and heating needs, reduce air emissions

SAN FRANCISCO, Feb. 10, 2006 -- Chevron Corporation (NYSE: CVX) today announced the completion of a unique hybrid alternative power plant – combining two solar technologies and hydrogen fuel cell generation – and major energy efficiency improvements at two of the largest U.S. Postal Service (USPS) centers in California. This achievement is being celebrated today at a ceremony in San Francisco that includes U.S. Environmental Protection Agency administrator Stephen Johnson and other federal, state and local government officials, business leaders, and representatives from academia and national environmental organizations.

Together, the mail facilities – the San Francisco Processing & Distribution Center (P&DC) and Embarcadero Postal Center (EPC) – comprise 1.2 million square feet, employ about 3,000 people and process 7.5 million pieces of mail daily, operating around the clock. The USPS is the largest employer in San Francisco's Bay View/Hunter's Point district, where the P&DC is located.

Chevron Energy Solutions, a Chevron subsidiary, developed, engineered and constructed the project over the past year. The work involved installing energy-efficient equipment, including new energy management and compressed air systems, lighting retrofits and comprehensive heating, ventilation and air conditioning system upgrades. At the P&DC, a 680,000-square-foot facility, Chevron Energy Solutions also installed high-efficiency natural gas cooking equipment for the cafeteria as well as a unique hybrid solar/fuel cell power plant composed of a 250-kilowatt Direct FuelCell® that generates electricity from hydrogen produced internally from natural gas; 185 kilowatts of crystalline-silicon solar panels mounted on a PowerLight® parking canopy that tracks the sun; and 100 kilowatts of flexible, amorphous-silicon, roof-mounted UNI-SOLAR® solar panels.

The improvements at both facilities will lower total annual electricity purchases by $1.2 million or 10 million kilowatt hours – a 46 percent reduction. In addition, the energy-efficient equipment will reduce the P&DC's and EPC's heating needs by 69 percent and 28 percent, respectively. In total, these improvements translate to a reduction in local electric utility emissions of about 6,600 tons of carbon dioxide annually, the equivalent of planting about 1,860 acres of trees.

"This project demonstrates the value of combining energy efficiency and clean energy technology," said Jim Davis, president of Chevron Energy Solutions. "The savings created by new, efficient equipment at these facilities are helping to pay for clean, alternative energy – solar and hydrogen fuel cell power. We commend the Postal Service for implementing a comprehensive, cost-effective solution that meets operating needs, improves the employees' work space and benefits the environment."

"To meet the world's growing demand for energy, it's important to find new solutions – like this one – that are cost-effective, help diversify energy sources and are good for the environment," said Rhonda Zygocki, Chevron vice president of Health, Environment and Safety. "This project is a huge step in the right direction."

The $15 million cost of the project is wholly funded by $8.3 million in energy savings, $4 million from the USPS's CFC refrigerant replacement program, and nearly $2.6 million in grants and incentives from the state of California and the U.S. Department of Defense Climate Change Fuel Cell Program. At today's ceremony at the P&DC, a rebate check for $2.3 million was presented by Pacific Gas and Electric Company, which administers the state's incentive programs for self-generation and efficiency improvements in Northern and Central California.

The San Francisco project is part of a larger USPS contract with Chevron Energy Solutions to install energy-efficiency improvements at mail facilities throughout Northern California. CES recently completed improvements at the USPS processing facility in West Sacramento and is upgrading facilities in Oakland, Berkeley, San Jose, Stockton, Salinas and other Northern California locations. Together, these improvements will save the USPS more than $2 million per year in energy costs. In addition, CES has installed improvements at the USPS's Memphis, Tenn., mail processing facilities.

About the U.S. Postal Service (USPS)

Since 1775, the USPS and its predecessor, the Post Office Department, has connected friends, families, neighbors and businesses by mail. It is an independent federal agency that visits 142 million homes and businesses every day, six days a week and is the only service provider delivering to every address in the nation. The USPS receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products and services. With annual revenues of more than $70 billion, it is the world's leading provider of mailing and delivery services, offering some of the most affordable postage rates in the world. The USPS delivers more than 46 percent of the world's mail volume -- some 206 billion letters, advertisements, periodicals and packages a year -- and serves 7.5 million customers each day at its 37,000 retail locations nationwide. Its Web site,, attracts more than 21 million visitors each month.

About Chevron Energy Solutions

Chevron Energy Solutions partners with institutions and businesses to improve facilities, increase efficiency, reduce energy consumption and costs, and ensure reliable, high-quality power for critical operations. Its projects reduce air emissions, extend fuel supplies and enhance indoor environments. The projects are funded by the energy savings they generate, saving taxpayer dollars. With more than two dozen locations nationwide, the company maintains in-house engineering, monitoring and project management capabilities; provides financing options; and delivers solutions designed to address each customer's particular needs.

For more information about Chevron Energy Solutions, please visit its web site at

Published: February 2006