Highest in State -- LADWP Incentives Make Solar Power More Affordable Than Ever and Encourage Local Manufacture of Solar Equipment

Source: Press Release 2001-12-12

LOS ANGELES--The Los Angeles Department of Water andPower today announced
the revision of its Solar Incentive Program, which now offers the highest per
watt financial incentive in California.

But, these high level incentives will be in place forthe next 12 months only, through Dec. 31, 2002.
So, LADWP customers should act now to start the process to obtain and install a new solar system
before the incentive decreases. The Solar Incentive Program lowers the purchase price of solar electric
or photovoltaic (PV) systems by half or even more for all participating LADWP customers.

"We're pleased to offer our customers an even better reason to go solar," said David H. Wiggs,
general manager of LADWP. "By lowering prices further, we're hoping to encourage even more
customers to participate in this program. It's important to remember that any power produced by
these solar systems reduces the load on LADWP's power plants, which benefits all Californians."

The Solar Incentive Program offers a cash incentive towards the installation of solar photovoltaic
equipment based on the wattage of the system. The base incentive per watt was increased from $3.00 to
$4.50 per watt, matching the amount offered by California for customers of investor-owned utilities.
As a municipally owned utility, LADWP's program is separate from the state's.

In addition to the base incentive, LADWP also offers Los Angeles Manufacturing Credit (LAMC) towards
solar photovoltaic equipment built by companies with PV manufacturing facilities inside the city. The
LAMC is an additional $1.50 per watt, raising the total available to customers to $6.00 per watt.

"This is a triple benefit initiative," said Angelina Galiteva LADWP director of Strategic Planning.
"We're reducing the price, increasing our reliance on clean, renewable energy and supporting local
industry while creating new jobs," she said. "Now that we offer the highest total per watt incentive in
the state, we anticipate that more major solar equipment manufacturers will come to Los Angeles
and focus their sales efforts here. This will give our customers a greater variety of equipment from
which to choose."

Although all certified solar power equipment qualifies for the base incentive, only Siemens Solar
manufactured equipment qualifies for the highest incentive, because they currently have a factory in
Chatsworth, located within the Los Angeles city limits.

Manufacturers can relocate anywhere within the city and qualify for the higher incentive by submitting a
letter of intent to the LADWP stating a commitment to operate a manufacturing plant in the city of Los
Angeles area. "We are making it very easy for solar power manufacturers to work in the city," said Galiteva.

The LADWP's goal is to achieve the installation of 100 megawatts, or 100,000 solar power systems in
Los Angeles by 2010. LADWP is itself constructing up to 1.5 megawatts per year as well as
participating in the local solar power marketplace through incentives, promotions and education.

For details on how wattage is measured and also information on manufacturing credit, log on to the
GreenLA website and click on the Solar Energy Section.

About LADWP and the Green LA Program

The Los Angeles Department of Water and Power serves more than 3.8 million people in Los Angeles
and was established almost 100 years ago to provide reliable water and electric needs to the
city's businesses and residents. The Solar program is part of LADWP's Green LA initiatives that include
Green Power, Energy Efficiency, Water Conservation, Electric Transportation, Cool
Schools, New Technologies and Recycling efforts. Further information about the Solar and other Green
LA programs can be obtained by calling 1-800 GreenLA or clicking onto www.GreenLA.com