press release

U.S. Military Contracts with Chevron Energy Solutions to Save Taxpayers $151 Million, Reduce Greenhouse Gas Emissions

SAN RAMON, Calif., Jan. 26, 2004 -- ChevronTexaco Corp. today announced the U.S. Department of Defense and the U.S. Department of Energy have awarded Chevron Energy Solutions multiple performance-based contracts to engineer and install facility improvements at three military bases. The improvements are guaranteed to save U.S. taxpayers at least $151 million and are expected to reduce greenhouse gas emissions by about 1.5 million tons, increase systems reliability and enhance living and working conditions for military service members, civilian employees and their families.

Under the contracts, valued at $96 million, Chevron Energy Solutions will implement energy and information management improvements at Beale Air Force Base in California, Marine Corps Logistics Base Albany, Ga., and the Army's Picatinny Arsenal in New Jersey.

"Chevron Energy Solutions has a proven track record of helping public institutions leverage technology to improve operations, reduce costs and reduce greenhouse gas emissions," said Jim Davis, president of Chevron Energy Solutions. "Our customers typically realize 15-30 percent in energy and operational savings. We believe these and other federal facilities can improve their efficiency, save hundreds of millions of taxpayer dollars annually and improve environmental performance at the same time."

The projects will include:

  • installing high-efficiency distributed energy systems;
  • applying web-based control systems to support operations and maintenance;
  • optimizing compressed air systems and process steam and hot water systems;
  • installing infrared heating systems and high-efficiency lighting systems;
  • improving climate control through HVAC and building insulation improvements;
  • harnessing geothermal resources to provide renewable energy; and
  • incorporating sustainable design techniques to minimize waste and streamline maintenance and operations.

Chevron Energy Solutions' contracts guarantee the projects' performance and the facilities' respective energy cost savings. This guarantee facilitates the investment of private capital -- rather than taxpayer dollars -- to fund the improvements. Besides paying for themselves and generating savings, the projects will also reduce greenhouse gas emissions by about 1.5 million tons.

Chevron Energy Solutions is fully accredited by the Department of Defense and the Department of Energy and has been awarded several Energy Savings Performance Contracts, federal facility management contracts, Utility Energy Services subcontracts, and a General Services Administration Federal Energy Supply Schedule contract. Through these arrangements, the company is helping numerous federal installations manage infrastructure requirements and comply with energy reduction mandates.

According to the Department of Energy and the Federal Facilities Council, the U.S. government spends over $3.5 billion annually to heat, cool, and power its federal buildings.

About Chevron Energy Solutions

San Francisco-based Chevron Energy Solutions is a unit within ChevronTexaco Corporation. With over two dozen offices nationwide, Chevron Energy Solutions partners with institutions and businesses to provide comprehensive solutions that help them use less energy, pay less for energy, and ensure availability of reliable, high quality power for critical operations. Chevron Energy Solutions recently enhanced its capabilities by acquiring businesses of Viron Energy Services and Energy Masters International, two leading energy services providers. In addition to the federal government, its customers include state, county and municipal government agencies; schools, colleges and universities; and many other public institutions and commercial and industrial businesses. The company maintains in-house engineering and monitoring capabilities, provides financing options and delivers solutions designed to address each customer's particular needs without promoting specific vendors, products or commodities.

For more information about Chevron Energy Solutions, please visit

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

This news release contains forward-looking statements about the signing of an agreement by a unit of ChevronTexaco with the U.S. Department of Defense and the U.S. Department of Energy to engineer and install facility improvements at three military bases. Words such as "anticipates," "believes," "expects," "intends," "plans," "targets," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based on management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are timely design and installation of the facilities; actual energy cost savings at the military bases; local and general economic conditions; and local political events. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Updated: January 2004