JCPenney Launches Solar and Wind Power Projects
Demonstrating its commitment to adopting renewable power sources that deliver both environmental and business benefits, J. C. Penney Company, Inc. (NYSE:JCP) today announced plans for solar and wind power projects that will supply electricity to 10 stores and one distribution center. The pilot projects represent the next step for JCPenney in its efforts to leverage new technologies and engage its 155,000 Associates in innovative energy programs. In conjunction with these initiatives, JCPenney also announced plans to obtain ENERGY STAR certification for at least 200 stores.
“Hosting these solar and wind projects will add to our knowledge of the benefits and potential applications of renewable energy programs at our facilities,” said Myron E. (Mike) Ullman, III, chairman and chief executive officer. “Together with the energy-saving initiatives we already have in place in our stores and distribution centers, this is another significant step toward achieving our environmental objectives. With enthusiastic support from JCPenney Associates nationwide, we are constantly looking for opportunities to contribute to a cleaner environment and run our business more cost effectively.”
Brightening the Future With Solar Energy
JCPenney has engaged SunPower Corporation (Nasdaq:SPWR) to install solar power systems on 10 JCPenney stores in California and New Jersey. Producing more than 4 megawatts of clean electric power, the systems will help avoid emissions of approximately 146,000 tons of carbon dioxide over their 30-year expected lifetime, which is equal to the annual greenhouse gas emissions generated by more than 800 cars.
The solar systems will be financed, owned and operated by a third-party financier, from which JCPenney will purchase the solar-generated electricity under a SunPower Access(TM) power purchase agreement. The rooftop installations, expected to be complete in November, will provide immediate savings through lower-than-utility solar energy costs and a long-term energy hedge for nearly 25 percent of the energy used at the stores. The 10 pilot stores will also benefit from the installation of new energy-efficient lighting and advanced energy management systems that will help reduce their energy consumption.
California stores scheduled to receive solar systems are located in El Cajon, Palmdale, Redlands and Santa Clarita, and the New Jersey store locations are in Cherry Hill, Deptford, East Brunswick, Freehold, Wayne and Woodbridge.
Capturing the Wind
JCPenney has also reached an agreement with Broadstar Wind Systems on a pilot program to install wind turbines at JCPenney’s 1.6 million-square-foot distribution center in Reno, Nev. The program will utilize Broadstar’s innovative, building-mounted AeroCam wind turbines, which capture energy and generate power more efficiently than conventional three-blade turbines. After installation is completed in November, JCPenney will purchase electricity generated by the system from Broadstar.
“These projects further our commitment to incorporate sustainability into all aspects of our operations. We will closely monitor the results to determine how we can best leverage these innovative methods to increase our participation in renewable energy projects while also benefiting our business,” said Jim Thomas, vice president and director of corporate social responsibility for JCPenney. “We are proud of what we are accomplishing as an organization to reduce energy consumption and extend JCPenney’s legacy of social responsibility, and our Associates remain focused on seeking new ways to protect the environment.”
Adding to the ENERGY STAR Galaxy
In addition to pursuing renewable power sources, JCPenney continues to utilize industry best practices and tools provided by the U.S. government’s ENERGY STAR program to increase energy efficiency in its stores. In 2007, four JCPenney stores became the first in the industry to qualify for ENERGY STAR certification under a new rating system designed for non-grocery retail stores. The Company has set a goal to achieve ENERGY STAR certification of at least 200 stores across the country by 2011. To be certified, stores must achieve an energy efficiency rating in the top quartile for all retail stores while maintaining appropriate levels of comfort and air quality.
Putting Extra Energy Into Conservation
In addition to the solar and wind projects announced today, JCPenney continues to expand its expertise in energy management, which contributed to the Company being named an ENERGY STAR Partner of the Year for energy management in 2007 and 2008. Initiatives the Company has undertaken to increase energy efficiency and minimize power requirements include:
— Engaging Associates: One Associate in each store is designated as Energy Captain, taking on responsibility to help communicate the importance of energy and resource conservation to the Store team.
— Energy Management Systems (EMS). By the end of 2008, approximately 800 stores will be equipped with an EMS, which provides remote monitoring and control of electrical and mechanical systems, monitors store comfort levels and helps identify opportunities for saving energy.
— Retrofitting store equipment. JCPenney continues to invest in replacing older lighting and HVAC systems with high-efficiency equipment. In 2007, a total of 167 stores received lighting retrofits that will save more than 27 million kilowatt-hours of electricity annually, compared with older systems.
For further information about JCPenney’s environmental and corporate social responsibility initiatives, or to download the Company’s CSR report, please visit www.jcpenney.net.
JCPenney is one of America’s leading retailers, operating 1,083 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation’s largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands which reflect the Company’s commitment to providing customers with style and quality at a smart price. Traded as “JCP” on the New York Stock Exchange, the Company posted revenue of $19.9 billion in 2007 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney’s “Every Day Matters” brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company’s 155,000 Associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company’s current views of future events and financial performance, involve known and unknown risks and uncertainties that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, consumer spending patterns and debt levels, the cost of goods, trade restrictions, changes in tariff, freight, paper and postal rates, changes in the cost of fuel and other energy and transportation costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, risks associated with war, an act of terrorism or pandemic, and a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information. Please refer to the Company’s most recent Form 10-K and subsequent filings for a further discussion of risks and uncertainties. Investors should take such risks into account when making investment decisions. We do not undertake to update these forward-looking statements as of any future date.