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Safeway Wins California's Flex Your Power Award

Safeway is implementing innovative strategy to reduce overall corporate energy consumption by implementing new cost-effective building designs, process improvements and demand-side management technologies in its stores.

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Friday May 4, 2007 ET

Grocer Honored for Initiatives to Save Energy and Reduce Emissions

PLEASANTON, Calif.--(BUSINESS WIRE)--Safeway Inc. (NYSE:SWY - News) has been recognized as a leader in responsible energy use by Flex Your Power, California's statewide energy efficiency campaign.

Safeway has achieved dramatic energy savings through several programs, including its "Power to Save" initiative, which saves 18.5 million kilowatt-hours (kWh) annually. Other savings stem from lighting retrofits, energy management controls and refrigeration upgrades. In all, the company is saving more than 98 million kWh of electricity annually, significantly reducing its power bills while cutting carbon dioxide emissions by almost 100 million pounds.

Safeway has also demonstrated its commitment to addressing climate change. It was the first and only retailer to join both the Chicago Climate Exchange, the world's first and North America's only voluntary, legally binding greenhouse gas (GHG) emissions reduction registry and trading program, and the California Climate Action Registry, the state's official registry for GHG reduction projects.

"As one of California's largest employers, we intend to be a leader in forging innovative solutions to achieve a cleaner, healthier environment," said Steve Burd, the company's chairman, president and chief executive officer. "We have committed ourselves to a companywide clean energy initiative that's having a positive impact on our business and the communities we serve."

Wind energy has been a key element of that initiative since 2005. The company's latest purchase of 87 million kilowatt-hours is enough wind energy to offset the electricity of its 291 U.S. fuel stations, its headquarter complexes in Northern California and all its stores in San Francisco, California and Boulder, Colorado, making Safeway the nation's fourth largest retailer purchaser of renewable energy.

Safeway is also implementing an innovative strategy to reduce overall corporate energy consumption by implementing new cost-effective building designs, process improvements and demand-side management technologies in its stores. Specific initiatives include utilizing advanced technology in new stores to reduce electricity use for refrigeration and installing no-heat freezer case doors that reduce electrical heating; replacing exterior store neon lighting with LED lighting, helping to significantly reduce electricity usage, and installing fluorescent lighting and other high-efficiency bulbs that substantially reduce additional electricity in its stores; and implementing a comprehensive national recycling program that is recycling nearly 500,000 tons of materials such as cardboard, plastics, compostable materials and other food waste each year. This is the equivalent of filling six football fields stacked 35 feet high.

"This award presents an opportunity for California to congratulate the leadership shown by this year's winners who have demonstrated that we can all save money and the environment," said Director Walter McGuire of Flex Your Power.

About Safeway Inc.

Safeway Inc. is a Fortune 100 company and one of the largest food and drug retailers in North America based on sales. The company operates 1,761 stores in the United States and Canada and had annual sales of $40.2 billion in 2006. Its common stock is traded on the New York Stock Exchange under the symbol SWY.

About Flex Your Power

Flex Your Power is California's statewide energy efficiency marketing and outreach campaign. Initiated in 2001, Flex Your Power is a partnership of California's utilities, residents, businesses, institutions, government agencies and non-profit organizations working to save energy. The campaign includes retail promotions, a comprehensive website, an electronic newsletter, educational materials and advertising. For more information, visit Contact:
Safeway Inc.
Brian Dowling, 925-467-3787

Edited by Carolyn Allen, owner/editor of California Green Solutions
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