Safeway Partners with EPA to Buy Wind Energy for Fuel Stations, San Francisco Stores and Corporate Offices; 270 Fuel Stations, 15 San Francisco Stores and Corporate Offices to Be Powered by Renewable Energy

Business Wire, Sept 14, 2005

PLEASANTON, Calif. -- Safeway Inc. (NYSE:SWY) announced today that it will purchase 100% renewable energy to power the company's 270 fuel stations in the United States, its 15 stores in San Francisco, and the Safeway corporate campuses in Pleasanton and Walnut Creek, California. Through a partnership with the U.S. Environmental Protection Agency (EPA), Safeway becomes one of the largest buyers of green energy in the United States and an EPA "Green Power Partner." EPA's Green Power Partnership is a voluntary partnership between the EPA and organizations that pledge to replace a portion of their electricity consumption with renewable energy.

"Protecting the environment and conserving our nation's valuable energy resources is something that Safeway and our customers care deeply about," said Executive Vice President Larree Renda. "By powering our fuel stations, stores and corporate offices with wind energy, we are taking a leadership role in using cleaner sources of electricity."

Under the partnership, Safeway has agreed to purchase 78 million kilowatt hours in the form of wind energy. By doing so, the company not only becomes one of the nation's largest buyers of green energy in the U.S. but also becomes California's largest buyer of renewable energy. Safeway is now the only retailer to purchase enough renewable energy to power 100% of its U.S. fuel stations.

"The EPA applauds Safeway's fuel stations for being among the largest commercial purchasers of green power in the United States," said Blaine Collison, program director of the U.S. Environmental Protection Agency's Green Power Partnership. "Safeway is leading by example and setting a standard for environmental partnership."

ENVIRONMENTAL IMPACT

The EPA, using average avoided carbon dioxide emissions nationally, estimates that Safeway's purchase is equivalent to avoiding more than 85 million pounds of carbon dioxide, comparable to planting more than 10,500 acres of trees. Each store reduces carbon dioxide emissions by an equivalent of planting 200 acres of trees. The emissions reduction per fuel stations is equivalent to planting 24 acres of trees.

HOW IT WORKS

EPA's Green Power Partnership is a voluntary partnership between the EPA and organizations that pledge to replace a portion of their electricity consumption with renewable energy. Renewable energy, including wind energy, is electricity generated from sources that are more environmentally friendly than traditional fossil fuels. Renewable energy benefits the environment by displacing non-renewable power sources like nuclear, coal and other fossil fuels that emit carbon dioxide (CO2), a greenhouse gas linked to global warming. The wind energy purchased by Safeway will come solely from newly constructed wind turbine generators, encouraging a cleaner, greener environment.

As a result of this investment, wind power will be supplied to the power grid, replacing electricity generated from less environmentally friendly sources. Electricity from a wind turbine acts the same as electricity generated from any other source. Once the energy leaves the generator and goes into the power grid, it displaces the same amount of non-renewable power. Purchasing green power in the form of energy certificates decreases the need for non-renewable power and thus promotes a cleaner environment. Safeway has committed to meeting all electricity needs of its U.S. fuel stations and Pleasanton and Walnut Creek corporate offices with green power.

About Safeway

Safeway Inc. is a Fortune 50 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,801 stores in the United States and Canada and had annual sales of $35.8 billion in 2004. The company's common stock is traded on the New York Stock Exchange under the symbol SWY.