Moreno Valley, California, October 20, 2003 — The Mayor of Moreno Valley, Bill Baley, today executed a long-term agreement with ENCO Utility Services of Anaheim for the provision of complete turnkey electric utility services.   The City will soon begin providing electric utility services to future growth areas in the City that will ultimately serve as many as 150,000 new residents and businesses.  Southern California Edison will continue to provide service to the customers in Moreno Valley that it currently serves.

ENCO Utility Services (ENCO), formerly Edison Utility Services a subsidiary of Edison International, provides design, construction management and operation services for utility distribution system owners. ENCO provides all customer services such as meter reading, billing, remittance processing and telephone center response.  In addition, ENCO deploys capital for utility infrastructure investments.

City Manager of Moreno Valley, Gene Rogers, said, “We are very pleased to have executed this agreement with ENCO thus taking a major step toward realizing our vision for the City’s new electric utility.  Implementation of this integrated service delivery agreement with ENCO ensures that the City will be able to provide the highest quality of service to our City utility customers.  The new utility will also allow the City to offer targeted economic development incentives and provides additional financial support to City coffers.  This will benefit the whole City.”

Highlighting ENCO’s ability to provide such services are its employees. These include, Dennis A. Eastman, President and CEO of ENCO, who formerly headed Southern California Edison’s electric distribution business line that served over 4 million customers in Edison’s 50,000 square mile service territory. Mr. Eastman said, “This project is one of the largest of its kind in California, and we intend to make it a complete success by delivering superior service to the City’s residents.   Many other Cities in California are also heading down the same path as Moreno Valley.  They recognize that this business can provide a very valuable source of revenue to fund services for all residents in their cities.“

ENCO is currently providing these same services to other Municipal customers in California and Arizona.

ENCO is owned by SRM-ENCO LLC whose majority ownership is held by Apollo Real Estate Investment Fund IV, LP.