PRESS RELEASES

For Immediate Release

Contact:
Cathy Reheis (916) 444-9981
Jeff Wilson (310) 808-5144
Dave Fogarty (650) 814-0562
Anita Mangels (949) 499-6995

ENERGY COMMISSION SATISFIED WITH GASOLINE MARKET

RECENT PRICE TRENDS “NORMAL,”
REPORT TO GOVERNOR CONCLUDES

Sacramento, CA (May 5, 2003) – The petroleum industry today applauded the California Energy Commission’s (CEC) most recent report to Governor Davis on gasoline prices.

“Once again, California’s gasoline market has been declared to be functioning appropriately,” said Joe Sparano, President of the Western States Petroleum Association. “The CEC has found that price movement in California is ‘normal,’ to quote the agency.”

Sparano continued: “Consumers have been asking some very understandable questions about gas prices recently. The CEC’s report reassures consumers that California’s gasoline market is indeed competitive and above board.”

Of particular interest to consumers may be the CEC’s conclusion that there has been a sharp reduction in California wholesale gasoline prices, and inventories have risen throughout the state. The CEC also reported that industry issues unique to California, as identified in the agency’s March, 2003 report to the Governor, have been completely alleviated.

The CEC further noted that the rate of decline in retail gasoline prices is a normal phenomenon.

Concluded Sparano: “The CEC’s latest report confirms that it is market conditions that govern the price of gasoline, and the market is working.”

Today’s report was requested by the Governor as a follow-up to findings issued by the CEC on March 28, 3003. At that time, the CEC concluded that recent price volatility was attributable to market factors. A report released in mid-March by the U.S. Energy Information Administration also gave the petroleum industry a clean bill of health with respect to pricing practices.

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