Free Enterprise Action Fund Asks ConEd, PG&E to Disclose Involvement with State Global Warming Initiatives

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Free Enterprise Action Fund asks electric utilities to disclose involvement in state efforts to establish mandatory greenhouse gas reduction plans.

Action Fund Management LLC (AFM), investment adviser to the Free Enterprise Action Fund (, asked electric utilities Consolidated Edison, Inc. and PG&E Corp. to disclose their involvement in state efforts to establish Kyoto Protocol-like, mandatory greenhouse gas (GHG) reductions for electric power plants.

“With gasoline prices and other energy costs approaching all time highs, now is not the time to invent excuses to pile on more costs on to consumer's backs” said Tom Borelli of AFM.

Nine northeastern states (Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont) and three western states (California, Oregon and Washington) are working to enact regional GHG reduction plans to bypass the federal government's rejection of the Kyoto Protocol.

The Free Enterprise Action Fund (FEAF) is a mutual fund seeking to provide investors with financial returns while persuading companies to focus on increasing shareholder value and profits rather than appeasing outside activists. The FEAF owns less than one percent of the outstanding shares of ConEd and PG&E.

Given the scientific controversy over global warming and media reports that the initiatives might significantly increase electricity costs for ratepayers, AFM asked ConEd and PG&E to disclose whether they have:

1. Participated in, and performed due diligence (i.e., scientific, economic and legal analyses) on the state GHG initiatives. In particular, have the companies estimated the impacts on ratepayers (especially the poor and elderly), regional economies and their own financial performances?

2. Consulted with activists and non-governmental organizations that advocate GHG reductions.

“Corporate management should ensure business decisions are based on thorough analyses and appropriate concern for shareholders and consumers – not on external political or activist pressures. Managements too often try to appease activists and politicians by submitting to questionable demands and passing along unnecessary costs to consumers and shareholders. We view appeasement as a breach of management's duty to shareholders, harmful to consumers and the economy, and as undermining our system of free enterprise,” said AFM's Steven Milloy.

The Free Enterprise Action Fund seeks long-term capital appreciation through investment and advocacy that promote the American system of free enterprise. An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Free Enterprise Action Fund can be found in the fund's prospectus. To obtain a prospectus, please call 1-800-766-3960 or visit Please read the prospectus carefully before investing.

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. The Free Enterprise Action Fund is a new fund with limited investment history and there is no guarantee that it will achieve its investment objectives.

The Free Enterprise Action Fund is advised by Action Fund Management, LLC., which receives a fee for its services, and is distributed by BISYS Fund Services Limited Partnership, which is not affiliated with Action Fund Management, LLC.

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Steven Milloy
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