Toyota Motor Sales Becomes World's Largest Clean Power User; Signals Growing Popularity of Renewable Energy

Business Wire, July 27, 1998

SACRAMENTO, Calif.--(BUSINESS WIRE)--July 27, 1998--Toyota Motor Sales has announced it will begin using "renewable" energy sources to power its facilities -- making Toyota the largest single user of clean power in the world, and highlighting the growing trend toward environmentally responsible energy alternatives.

"Toyota has taken the lead in proving the viability of renewable sources of power," said John White, executive director of the Center for Energy Efficiency and Renewable Technologies (CEERT). "This bold step toward environmental responsibility is not only a testament to their foresight, but also exemplifies the growing popularity of clean power."

The first step in Toyota's shift to clean power is to purchase all electricity for its Torrance and Irvine headquarters from a mix of renewable sources -- such as solar, wind, geothermal steam, biomass or water. Then the company plans to "switch over" its Long Beach port and its auto parts supply building in Ontario -- the largest Toyota parts facility in the country.

"Toyota has a responsibility to the environment that runs beyond designing, building and selling clean, efficient and high quality trucks and cars," said Yoshi Ishizaka, Toyota Motor Sales chief executive. "We also must re-evaluate every part of our operations from recycling waste paper to purchasing renewable-resource electricity."

In the long-term, Toyota plans to use renewable energy for all its manufacturing facilities, including its General Motors joint venture facility in Fremont.

According to Jim Cooke, national manager of real estate and energy affairs for Toyota's non-manufacturing facilities, choosing "clean" or renewable electricity instead of "dirty" electricity will cost Toyota an extra $1 million. But Cooke noted that the positive response from this decision has attracted enough media attention to justify the annual renewable price premium.

The two year contract for renewable power at both Toyota locations will be provided by Edison Source, a subsidiary of Southern California Edison. This is the largest single purchase in the history of clean energy, and is the equivalent of servicing 15,000 households.

Edison Source was chosen in part because of their involvement in a joint venture project with Toyota in developing an electric vehicle. A familiarity with Edison Source upper management, as well as its proximity both companies, also contributed to Toyota's decision.

Toyota's commitment to promote renewable energy has also lead the company to offer its employees a 10% discount on the premium associated with clean power purchases. Cooke, like many other employees, has responded by purchasing a 100% renewable energy system for his home.

Cooke said employees are much "more of an advocate (for renewable energy) than we expected. After the Earth Day announcement, nearly every person he had spoken with "feels really good about the decision."

With questions arising about the expanded use of such alternatives in California's newly deregulated electric market, the Independent Energy Producers (IEP) were optimistic about the future of clean power.

"I can see a day when renewable energy is the expectation rather than the exception," said Jan Smutny-Jones, executive director of IEP.

"We wanted to set an example for our competition," said Cooke. "We want to challenge other corporate entities to step up and take responsibility."

    CONTACT: IEP/CEERT
              Lori Jablonski, 916/442-7785