Solar - Power to the People;
LADWP Incentives Make Solar Power More Affordable Than Ever and Encourages Local Manufacture of Solar Equipment
Source: Press Release 2002.01.17 [pdf]

Beginning this week, residential customers of the Los Angeles Department of Water and Power
will receive bill inserts explaining the Department's Solar Incentive or Rebate Program, which now offers
the highest per watt financial incentive in California. Each residential billing cycle takes approximately
two months, so LA residents will continue to receive these notices through mid-March.

"We're pleased to be able to inform all of our residential customers about our Solar Rebate
program in such a cost-effective manner," said David H. Wiggs, general manager of LADWP. "By
lowering the price of solar electric power systems, we're hoping to encourage even more customers to
consider going solar. It's important to remember that any power produced by these solar systems
reduces the load on LADWP's power system, which benefits all Californians by reducing the need to
build power plants."

The Department's highest-level incentives are in effect through December 31, 2002, so the
Department encourages all customers who are interested in solar power to act now. The first step
is to hire a contractor to recommend a solar power system. Next, the customer can reserve Solar
Rebate money for up to twelve months, at which time the solar power system must be installed.

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. It offers a cash incentive based on the
Wattage or size of a PV system. The base incentive per watt was increased from $3.00 to
$4.50 per watt in 2001 to match the amount offered by the State of 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.

"Our rebate program can make solar power a reality for residents who were always interested, but
simply couldn't afford it before," said Angelina Galiteva LADWP director of Strategic Planning.
"We even offer easy financing through our EfficiencyWise program, or customers can finance
solar power systems as home improvements, or by rolling the cost into their mortgages. Solar power
not only means reduced electricity bills for our customers, it also increases our use of clean,
renewable energy while decreasing our reliance upon conventional, polluting fuels," she said.

Although all certified solar power equipment qualifies for the base incentive, which is currently
$4.50/Watt, only Siemens Solar Industries' PV equipment and PowerLight Corporation's
PowerGuard(TM) equipment qualify for the highest incentive, because the two companies operate a
factory in Chatsworth, which is part of the City of Los Angeles.

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 in municipally owned
buildings as well as participating in the local solar power marketplace through incentives, promotions
and education.

Solar Incentive Payments per Watt: Years 1-5
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LADWP Solar Power Buydown ProgramYear1 2 3 4 5
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2001 - 2002 - 2003 - 2004 - to 8/31/2005
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Base Incentive Per Watt $4.50 $4.50 $3.50 $3.00 $2.50
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Incentive for PV systems from $1.50 $1.50 $1.50 $1.00 $1.00 companies that manufacture PV systems inside City of LA/Watt (LAMC-L.A. Manufacturing Credit)
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Base Incentive + LAMC $6.00 $6.00 $5.00 $4.00$3.50
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About Green LA and LADWP

The solar initiative is part of LADWP's Green LA program that also includes Energy Efficiency,
Green Power, Cool Schools Tree Planting, Electric Transportation and Recycling. To learn more about
the Solar and Green LA Program log onto GreenLA.com or call 1-800-GreenLA.

The Los Angeles Department of Water and Power provides water and electricity services to 1.4 million
customers in a 465 square mile municipal service area. LADWP is the largest city-owned utility in the
nation. City, community leaders and customers will be celebrating the LADWP's 100th anniversary
beginning next month.