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BACKGROUND PG&E is implementing in Northern California what it calls its SmartMeter program. This program is an automated gas and electric metering system that uses state of the art technology to measure and bill customers for their energy use. PG&E believes the program will provide a number of benefits, such as faster power restoration (the technology will allow PG&E to pinpoint power outages faster), resolving service problems without necessarily having to visit a customer's home or business and, ultimately, providing information as to customers as to the relationship between when utilities are used and the costs related to such use, so that customers can monitor their use of electricity (primarily) and gas and save money by using utilities in off peak hours. In general terms, the SmartMeter system is based on radio frequency technology. Over the course of the next few months, PG&E will be replacing the existing electrical and gas meters throughout Pleasanton with different technology that will transmit the use of electricity and gas via radio signals to data collection units and related facilities that will be mounted on street lights and utility poles throughout Pleasanton. Because these data collection units need to be strategically placed, PG&E has requested the use of four City owned street light poles upon which to place these units. DISCUSSION PG&E will be implementing this program in Pleasanton later this year or early next. Before doing so, PG&E intends to provide comprehensive information to Pleasanton residents about the program and that their utility meters will be changed out. This program would appear to be of benefit to PG&E customers, including the City. Eventually, PG&E will be able to offer customers time of day electric pricing plans so that customers can modify how much electricity they use at different times of the day. By shifting their use away from times when electrical demand is highest, customers can save on their energy bills. The data collection units and related facilities that PG&E wants to mount on four City owned street lights are relatively small. The data collection units are only 24 inches tall and the antenna about 30 inches in height. See attached depiction. Moreover, unlike the Metricom data collection system that was installed on almost all street lights several years ago and then went bankrupt (that caused the City itself to remove the system), PG&E proposes to use only four of the City's street lights. PG&E will also pay the City $780 per pole ($39/pole for 20 years) and provide security for the facilities' removal should the system be abandoned and PG&E itself fails to remove the system from the City's poles. Page 2 of 3