June 10, 20095:30 p.m.

Agenda Background: Frank Heldman, District

Manager Summary of 14.1 Filing: John Garon,

Regulatory Affairs Manager Water Use Efficiency Tips: Albert Frias,

Conservation Coordinator

About Golden State Water Company (GSWC) Provided water to Californians for 80 years Serves one million people in more than 75

communities Regulated by the California Public Utilities

Commission Annual Water Quality Report provides

additional accountability Customer service and information available 24

hours a day at 1-800-999-4033 and www.gswater.com

Introductions

Background Golden State Water Company’s

Water Shortage PlansFrank Heldman, District Manager

Background

Drought and Pumping RestrictionsCalifornia is in the third year of a

droughtWater storage in the state's major

reservoirs and runoff projections remain well below average

Environmental restrictions on pumping water from the Delta to protect Delta Smelt

Background Impact on Local GSWC Water Supply GSWC buys approximately 38 percent of its

wholesale water from the Municipal Water District of Orange County (MWDC) for its more than 42,200 customers in the county

MWDC will implement mandatory water use allocations for all retailers including GSWC beginning July 1, 2009

If GSWC exceeds its allocation from MWDC, it will be assessed penalties

To meet its MWDC allocation, GSWC will ask its Orange County customers to reduce water usage by 6 percent beginning July 1, compared to historical average usage

The plan requires California Public Utilities Commission approval

If approved, fines and suspension of service may occur for customers who repeatedly violate a list of water use restrictions

Where Southern CaliforniaWhere Southern CaliforniaGets its WaterGets its Water

Water Banking / ExchangesWater Banking / ExchangesTransfers & StorageTransfers & Storage

Local SuppliesLocal Supplies LA AqueductLA Aqueduct

Colorado River Colorado River Aqueduct Aqueduct SuppliesSupplies

ConservationConservation Local Supplies Local Supplies

Groundwater & RecyclingGroundwater & Recycling

State State Water Water

Project Project Supplies Supplies

Water Supply ConditionsWater Supply Conditions

*Based on 15% Initial Table-A Allocation

Metropolitan Storage ReservesMetropolitan Storage Reserves

January January 20072007

January January 20082008

Estimated Estimated January January

20092009

~2.2 MAF

~670 TAF

~2.8 MAF

~ 1.7 MAF

~670 TAF

~2.3 MAF

~ 1.0 MAF

~670 TAF

~1.7 MAF

0%

20%

40%

60%

80%

100%

120%

140%

Water Use

– Up to 115%:Up to 115%:Applicable rate +Applicable rate +2 X Tier 22 X Tier 2

Water Supply Allocation Penalty RatesWater Supply Allocation Penalty Rates

– Over 115%:Over 115%:Applicable rate +Applicable rate +4 X Tier 24 X Tier 2

– Discount in recognition of Discount in recognition of Preferential Rights:Preferential Rights:1 X Tier 21 X Tier 2

* Untreated Tier 2 Rate is $528/AF in 2009

Summary Golden State Water Company’sRule and Schedule 14.1John Garon, Regulatory Affairs Manager

Plan Summary“Rule” 14.1

Outlines conservation measures Voluntary conservation

GSWC asked customers to voluntarily reduce water by 20% beginning in October 2008

Mandatory conservation and rationing

Procedures on how to file for Schedule 14.1 (Mandatory Conservation)

PUC accepting public commentsTariff Unit, Water Division, 3rd floorCalifornia Public Utilities Commission,505 Van Ness Avenue, San Francisco, CA

94102E-mail: water_division@cpuc.ca.gov

“Schedule” 14.1

Plan Summary

Used for Mandatory Conservation and Rationing

Detailed outline of Mandatory Conservation and Rationing Program

Contains fines and penaltiesUnauthorized and non-

essential water use in Rule 14.1 becomes mandatory

Plan Summary

Seven Stages of Plan

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7

% Annual Reduction

OnlyVoluntaryReductions

5-10% >10-15% >15-20% >20-30% >30-40% >40-50%

% of Customer Allocation

Only VoluntaryReductions

90-95% 85-89% 80-84% 70-79% 60-69% 50-59%

Footnote – In Stages 1 through 7, fines will exist for repeatedly violating water use restrictions.

Plan SummaryHow GSWC Will Determine Each Customer’s Allocation

Three-year history (2004-2006)Percent of reduction varies depending

on StageCustomers using 5 Ccf or less a month

are exempted Current and future allocations will be

printed on billing statementsException process will allow customers

opportunity to apply for adjustment

Plan SummaryHow Each Customer’s AllocationWill Appear on Billing Statements

Plan SummaryPenalties for Going Over Allocation1st stage – No penaltyAll other stages

– Regular rate plus two times current quantity rate on the R3-1-R and R3-1-NR tariff for usage over allocation up to 15%

– Regular rate plus three times current quantity rate on the R3-1-R and R3-1-NR tariff for usage that is 15% or more over allocation

– The penalties GSWC issues to customers are designed to be revenue neutral and only cover costs GSWC incurs from exceeding its reduced MWDC allocation

Plan SummaryExamples of Non-Essential and Unauthorized Use

Use of water resulting in excessive run-off in gutters, waterways, patios, driveways or streets

Use of water through broken or defective plumbing, sprinkler, watering or irrigation systems

Use of hose for outside areas for landscaping without an automatic shut-off valve

Complete listing of unauthorized use is available at meeting tonight in the copy of our 14.1 filing

Plan SummaryFines for Non-Essential and Unauthorized Use1st offense – warning issued2nd offense and every offense after

Stage 1 & 2: $50 Stage 3: $100 Stage 4: $150 Stage 5: $200 Stage 6: $250 Stage 7: $300

If offense continues Low flow restrictors installed Disconnect

Plan Summary

Flow Restrictor Charges

5/8” to 1” - $1001-1/2” to 2” - $1503” or larger - $200

Questions

Golden State Water CompanyWater Efficiency TipsAlbert Frias, Water Conservation Coordinator

Topics of DiscussionWater Use Efficiency – Water Conservation

How Much Water Do We Use?

How Can We Save Water?

Rebates Available

What is Water Use Efficiency?Using Water Efficiently and Effectively

Lowering your water needs but achieving the same results

Using water only when needed or necessary

How Much Water Do We Use Indoors?

Older toilets use between 3.5 and 7 gallons of water per flush

High-Efficiency Toilets use 1.28 gallons per flush

Average savings of 2.2 gallons per flush!

High-Efficiency Toilets

How Can We Save Water Indoors?

How Can We Save Water Indoors?

Globally recognized water-saving device

Simple and easy to use water-saving device

Average savings of 0.625 – 1.25 gallons per flush!

“Toilet Tummy”

How Can We Save Water Indoors?

Washing machines use an average of 40.9 gallons of water per load

High-efficiency clothes washers use an average of 24 gallons per load

Average savings of 16.9 gallons per load!

High-Efficiency Clothes Washer

How Can We Save Water Indoors?

Older showerheads have an average flow rate of 5 gallons per minute

Low-flow showerheads have an average flow rate of 2 gallons per minute

Average savings of 15 gallons per 5-minute shower

Low-Flow Shower Heads

How Can We Save Water Indoors?

Standard aerators have an average flow rate of 3 gallons per minute

Low-flow aerators have an average flow rate of 1.5 gallons per minute

Average savings of 3-gallons per use based on a 2-minute usage period

Low-Flow Aerators

• •

How Can We Save Water Indoors?

Estimated faucet leakage ratesDrips

30 drips per minute = 4.32 gallons per day60 drips per minute = 8.64 gallons per day90 drips per minute = 12.96 gallons per day120 drips per minute = 17.28 gallons per day

Fix Leaks!

How Can We Save Water Indoors? Fix Leaky Toilets!

Silent leaks

Will waste from 30 to 500 gallons of water per day!

Dye test

Replace flapper – flush valve

How Can We Save Water Outdoors? Water your yard only before 8 a.m. to

reduce evaporation and wind interference Save up to 25 gallons per day

Install a smart sprinkler controllerSave up to 40 gallons per day

Use a broom instead of a hose to clean driveways and sidewalksSave up to 150 gallons each time

Check your sprinkler system for leaks, overspray and broken sprinkler headsSave up to 16 gallons per day

 

Conservation Programs

UPDATE: (GSWC customers within Metropolitan Water District service area)

Due to high demand, the Metropolitan Water District, our major partner for rebate funds in many of our customer service areas in Southern California, has allocated all of the rebates for its fiscal year that ends June 30.

No further rebate reservations are available at this time. However, after July 1, check our Web site for rebates on washers, toilets, and other devices.

Residential and Commercial Rebates

Useful Web sites www.gswater.com www.bewaterwise.com www.ccwater.com www.H2ouse.org www.cuwcc.org www.water.ca.gov/drought www.Planetgreen.discovery.com

Contacts

24-hour Customer Service 1-800-999-4033 or gswater.com

Water Use Efficiency Manager Edwin DeLeon 909.394.3600 X683 Edeleon@gswater.com

Conservation Coordinator Albert Frias 909.394.3600 X745 albertfrias@gswater.com

Conservation RatesApproved by Commission in August 2008 Implemented in November 2008Main features:

Lower monthly service charge so a larger portion of your bill is based on water consumption, giving you more control over your bills

Tiered, or increasing block rates, have a higher unit price for usages in the higher block, providing an incentive for customers to use water efficiently

Separate rates for Residential and Non-Residential Customers Residential = single family with one meter. Two tiers. Non-Residential = all others. Lower service charge with

single quantity rate structure.Existing tariff sheet available here at

meeting or www.gswater.com

Questions