Cool Contract: Los Angeles Unified School District Selects PG&E Energy Services/CH2M Hill to Air Condition 150 Schools

Business Wire, Jan 13, 1999

LOS ANGELES--(BUSINESS WIRE)--Jan. 13, 1999--Launching one of the largest air conditioning projects in the country, the Los Angeles Unified School District (LAUSD) has signed a landmark contract with PGCH, Inc., a consortium of PG&E Energy Services and CH2M Hill Constructors Inc., to install air conditioning at 150 schools throughout Los Angeles.

Under the agreement, PGCH will provide uniform, high-quality air conditioning to all schools on an accelerated 18-month schedule, at a fixed price of $155 million for the scope of work outlined in the contract. It is expected that 58 schools will be air conditioned by September 1999, with the remaining installations completed by August 2000. The work will involve local union labor at all school sites.

The contract also includes a Los Angeles Department of Water and Power (DWP) electricity supply discount to schools served by the DWP. In addition, PG&E Energy Services will provide electricity at a discount to schools located in Southern California Edison's service territory.

Los Angeles voters approved funding for air conditioning at LAUSD schools in April 1997 through the passage of a local bond measure, Proposition BB. Shortly afterward, the district began air conditioning design and installation at some schools through several small, site-specific contracts. Concurrently, the Los Angeles Board of Education began evaluating a proposal from PG&E Energy Services and CH2M Hill to manage the installations at all remaining schools as a single project - rather than continue to contract the work on a site-by-site basis -- to maximize efficiency and minimize costs. Following a thorough review, the Board approved this proposal in concept last summer. The resulting agreement announced today applies to the district's remaining 150 schools, which will be air conditioned on a "fast track" schedule.

"We're very pleased with this contract," said Ruben Zacarias, superintendent of the Los Angeles Unified School District. "Within 18 months, children throughout Los Angeles will be able to enjoy a cooler, more comfortable learning environment."

"We're uniquely qualified to manage such an extensive project, one that will benefit thousands of children," said Scott Gebhardt, president and chief executive officer of PG&E Energy Services. "PG&E Energy Services and CH2M Hill have formed an exceptionally strong team, and we look forward to demonstrating the long-term value of comprehensive project management."

An unregulated subsidiary of PG&E Corporation (NYSE:PCG), San Francisco-based PG&E Energy Services provides businesses and institutions with comprehensive, customized services to manage and reduce their energy-related costs. Examples of service offerings include discounted electricity and natural gas, regulatory and tariff consultation, site audits, energy efficiency retrofits, power quality solutions, billing options and other energy/information management programs. To date, PG&E Energy Services has entered into long-term agreements that in total represent more than $2 billion in revenues.

CH2M Hill is a global company providing project development, engineering, construction and management of water, environmental, energy and transportation infrastructure, as well as the design and construction of industrial facilities. Founded in Corvallis, Oregon in 1946, CH2M Hill now employs more than 7,000 professionals in more than 80 offices worldwide.

For more information about PG&E Energy Services or CH2M Hill, please visit our websites at www.pgees.com or www.ch2m.com.