PG&E CLEANS PORT OF OAKLAND WITH COLD IRONING TECHNOLOGY.

Pacific Gas and Electric company today announced the first- ever successful demonstration of liquid natural gas (LNG) "Cold Ironing" at the Port of Oakland -- the fourth busiest container port in the United States. The demonstration marks a milestone in the development of innovative technologies to improve air quality in the West Oakland community and meet emissions reduction targets set by the California Air Resources Board (CARB).

"PG&E is committed to developing clean-air transportation technologies that benefit the communities we serve and help to slow climate change," said Brad Whitcomb, vice president of customer products and services for PG&E. "LNG cold ironing is one of the most promising technologies to significantly reduce at-berth ship emissions, which make up approximately 28 percent of all port emissions."

Cold ironing is a process where ships shut off their diesel-powered engines and use shore-based power for their electrical needs, preventing and/or significantly reducing harmful emissions during each port visit. Mobile LNG cold ironing, a concept originally developed by Wittmar Engineering in 2001, provides even greater environmental and cost benefits by offering quick connection to a significantly cleaner fuel source and precluding the need for installation of permanent infrastructure.

PG&E collaborated with APL, CleanAir Marine Power (CAMP) and Wittmar Engineering to successfully cold iron the first ship, APL's 863-foot container ship the APL China. The APL China was powered at berth by LNG, utilizing CAMP's patented Dual Frequency Multi Voltage(TM) mobile, shore-side electrical generator. PG&E provided the LNG and LNG equipment and technical expertise critical to moving LNG cold ironing from concept to reality.

During the July 18, 2007 demonstration at the Port of Oakland, the APL China container ship was cold ironed for eight hours using the mobile LNG generator. Natural gas provides significant emissions benefits and emits zero diesel particulate matter, which is a carcinogen. Emissions benefits for a 24-hour period are shown below.

Diesel Power vs. Wittmar DFMV(TM) Cold Ironing APL Emissions Reduction Data

Pollutant Amount Amount Reduction % Nitrogen Oxide (NOx) 1059 (lbs.) 56 (lbs.) 94.71% Carbon Monoxide (CO) 79 (lbs.) 34 (lbs.) 56.96% PM10 15 (lbs.) .02 (lbs.) 99.93% Sulfur Oxide (SOx) 72 (lbs.) 0 Eliminated Carbon Dioxide (CO2) 42,651 (lbs.) 24,430 (lbs.) 42.72% Fuel Type 0.5% Sulfur Diesel Liquid Natural Gas

Based on the success of the demonstration, the Wittmar LNG generator system has the potential to reduce a tremendous amount of emissions from ships at berth. The Port of Oakland is considering a plan that would use Wittmar LNG generators to cold iron every ship entering its port by 2010, 10 years in advance of CARB's proposed regulations. In 2006, the Port of Oakland received 1,940 ship calls with an average stay of 18 hours.

An additional LNG cold ironing test is planned to take place at the Port of Richmond later this year.

Since 2004, PG&E has been working with the Port of Oakland to find solutions, using natural gas and electric technologies, to reduce diesel emissions from port operations and improve air quality for the West Oakland community. PG&E partnered with a trucking firm and transportation company in 2005 to bring 10 LNG trucks and a first-of-its-kind compressed natural gas (CNG) port shuttle truck to the Port of Oakland, displacing approximately 5,000 gallons of diesel fuel each year. PG&E was recognized, along with CleanAir Transport and OmniTrax, by the U.S. Environmental Protection Agency (EPA) Region 9 for this innovative partnership.

The environmental benefits of PG&E's collaboration with the Port of Oakland will continue to grow as more natural gas trucks are scheduled to be purchased or converted in the next 12 months. PG&E recently supported the opening of a permanent CNG refueling station at the port and plans are also underway to build a permanent LNG refueling station. PG&E also has four LNG trucks awaiting delivery for its own fleet needs and is donating four cleaner diesel trucks with exhaust retrofits for Port trucking. As more clean air technologies are adopted, the local community is well-positioned to benefit for years to come -- particularly with the Port scheduled to expand in the next several years.

For more information, visit http://www.pge.com or call 415/973-5930.