Recreational Equipment, Inc. (REI) announced multiple stewardship
investments the co-op is integrating in 2009 to further reduce its
impacts on the environment. These strategic efforts focus on solar
energy, renewable power sources and energy reduction measures, and help
the company progress towards its goal of becoming climate-neutral by
2020.

“Our
mission is to make REI stores and buildings incredibly energy efficient
and take advantage of sustainable sources of power wherever possible,”
said Kevin Hagen, REI’s director of Corporate Social Responsibility.
“This includes the construction of efficient new stores and
retrofitting existing locations to ensure long-term environmental and
financial benefits for the co-op and our communities.”

Solar Generation

The
installation of a rooftop solar electric system on REI’s eastern region
distribution center in Bedford, Pa. was completed last month through a
power purchase arrangement with an affiliate of Tier 1 Generation, LLC.
The new system will generate an estimated 60,500 kilowatt hours of
electricity annually and provide a long-term, fixed-price source of
electricity for the facility. The 525,000 square-foot building was
built to optimize energy use, including the use of more than 300
skylights and motion sensor light fixtures and conveyor belts. REI
Bedford received the U.S. Green Building Council’s Leadership in Energy
and Environmental Design (LEED) Silver certification for New
Construction in 2008.

The co-op has previous experience with
solar generation and retrofitted 11 stores to operate from on-site
solar electric systems in 2008, powering up to 35 percent of their
electricity needs. In addition, nine REI stores currently house solar
hot water systems, which are used to heat 50 to 70 percent of the
stores’ water for sinks and employee showers with energy generated from
the sun. Two new stores, opening in the fall of 2009, will also utilize
similar systems.

Renewable Energy Sources

Approximately a quarter of REI locations are 100 percent supplied from
the
purchase of renewable energy – such as wind or biomass – where it
provides environmental and business benefits to the co-op. This year,
six additional stores began using green power sources through NextEra
Energy Resources, the largest producer of wind and solar energy in
North America. As a result, REI has 23 locations nationwide utilizing
renewable energy sources, equaling 23 percent of its annual retail
energy use. The additional REI stores are located in Framingham, Mass.,
Lincoln Park, Ill., Northbrook, Ill., Oakbrook Terrace, Ill.,
Schaumberg, Ill. and West Hartford, Conn. In addition, NextEra’s
EarthEra Renewable Energy Trust directs 100 percent of the proceeds
from this partnership to the construction of new wind and solar
renewable projects.

Energy Management

Working
towards its 2020 climate-neutral goal, REI is investing in projects to
reduce its overall energy consumption, while also adding new store
locations each year. To reduce its electricity use, the co-op is
retrofitting 50 percent of its stores this year with ceramic metal
halide lamps that are three times more energy efficient than
traditional incandescent bulbs. The new lamps will not only reduce the
energy needed to light REI stores, but will also last longer and
improve lighting. Through these retrofits, the company projects that it
will save 1.6 megawatt hours and cut energy costs by $165,000 per year.
REI plans to retrofit the remainder of its stores in 2010.

REI
has also partnered with Novar, a global leader in multi-site energy
management, to provide services and technology to better manage energy
consumed in lighting, heating, ventilation, and air conditioning
systems in 70 of REI’s stores with plans to retrofit 14 additional
stores in 2009. As a result of these services, Novar saves REI 1.5
megawatt hours and more than $200,000 in energy costs annually.

To
further reduce its energy use, the co-op participates in demand
response programs in 20 of its stores through CPower, a leading energy
management firm. By working with CPower to better match a building’s
energy use to local grid conditions, REI stores can cut costs and help
utility companies manage resources, ultimately avoiding the need to
build new power plants and infrastructure.

Additional
information on REI’s energy and overall environmental commitments is
available at www.rei.com/stewardship. The 2008 report will be available
online later this year.