Investing in your water

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Investing in your water investing in your
future
California American Water 2009 - 2011 General
Rate Conservation Case Applications
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Monterey Water District by the Numbers

• Water system established in 1882
• 38,000 connections 120,000 population including
  sub-systems (Ryan Ranch, Hidden Hills, Bishop,
  Ambler Park, Ralph Lane, Chualar Toro)
• 680 miles of water mains
• 3,012 fire hydrants
• 18 wells along Carmel River 8 wells in Seaside
  Basin Aquifer
• Two reservoirs, San Clemente Los Padres
• 99 storage tanks, 87AF capacity plan to add
  26AF in 2008 - 2011
• Elevation 0 1,210 (0 524 psi)
• 83 pump stations, 75 pressure regulating stations
• 7 satellite well systems
• 90 full-time employees, two-thirds Utility
  Workers of America representation

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System Usage by Type
Golf Course 3
Public Authority 9
Industrial 1
Unaccounted-for-Water 12
Residential 45
Commercial 22
Multi-residential 9
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Current Applications

• Monterey General Rate Case (GRC)
• Includes all satellite systems
• General Office Rate Case
• Conservation Application
• Monterey Wastewater GRC
• Felton GRC

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Setting Your Water RatesA 20-month Process

• GRC Schedule
• Initial proposal filed November 30, 2007
• Final Application filed January 30, 2008
• Public hearings in Monterey May 8 9, 2008
• DRA Report on their findings and review August
  2008
• Evidentiary hearings October 2008
• Proposed Decision by Administrative Law Judge
  April 2009
• Final Decision by CPUC Commissioners in June
  2009
• Final rates effective July 2009

DRA Division of Ratepayer Advocates, an
independent entity of CPUC
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GRC Proposed ChangesIncrease in 2009 mainly
driven by Capital Investment
ITEM 2008 2009 2010 2011
Residential Bill 29.60 52.60 59.03 66.44
Percent Increase NA 80 12 12
Revenue Increase NA 24.7M 6.5M 7.6M
Capital Investment 19.4M 45.1M 79.7M 19.0M

• Commercial, Industrial and Public Authority
  customers will receive
• the same percentage increase

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Filings for a Sustainable System

• Conservation December 14, 2007
• Current GRC General Office January 30, 2008
  
• For rates in 2009 2011
• 3. Rate of Return
  May 2008
• 4. San Clemente Dam Total Cost Recovery Future
  
• 5. Next GRC Support Functions May 2010
• For rates in 2012 - 2014
• Coastal Water Project EIR CPCN On-going review
• CWP Total Cost Recovery
  Future

• Monterey Customers currently pay for Coastal
  Water Project preconstruction costs through a
  surcharge on the bill

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Major Drivers of Rate Request2009 2011
Loss of Consumption 3
Other 4
General Office 7
Labor 8
Capital Investment 62
Seaside Basin Sand City 16
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Capital Investment 622008 2011 (170M
Total)
Other Improvements 4 7M
Meet Peak Demand 8 13M
Protect Environment Regulatory Compliance
55 93M
Improve Reliability Water Quality 10 18M
of total capital
Reduce Leaks 23 39M

• Construction costs for Coastal Water Project not
  included

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Labor 8

• 15 Additional Employees Proposed
• Payroll increases benefits of existing
  employees

• 4 Maintenance Technicians
• 4 Utility Workers
• Valve Turner
• Backhoe Operator

• Clerical Position
• Operations Specialist
• Systems Operations Specialist
• Senior Operations Engineer
• Operations Engineer in Training

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General Office Other 14

• General Office 7
• Customer Service Center
• Belleville Laboratory
• Finance Legal
• External Affairs
• Other
• Maintenance Other 4
• Power
• Chemicals
• Supplies
• Maintenance projects
• Loss of Consumption 3

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Regulatory Impacts To Your Water Supply 16
1979 1988 Historic 1995 2006 95-10 Interim Goal WY 2009 1st Seaside Reduction ULTIMATE 95-10 Seaside
Carmel River 14,106 AFY 11,285 AFY 11,285 AFY 3,376 AFY
Seaside Basin Coastal 2,700 AFY 4,000 AFY 3,191 AFY 1,494 AFY
Seaside Basin Laguna Seca 210 AFY 700 AFY 271 AFY 0 AFY
TOTAL 17,016 AFY 15,985 AFY 14,747 AFY 4,870 AFY
10,000 AFY reduction from 2009 limit or
replacement supply needed
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Seaside Adjudication Changed Your Supply

• Decision issued March 2006
• 2,500 AF reduction from recent pumping levels
  required by 2021
• 15 - 20 reduction in overall customer demand or
  increase in supply needed to meet order
• 1 reduction in consumption each year until 2021
• This reduction is for Seaside Adjudication Only

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2009 Seaside Basin Fees Sand City Desal Lease
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• 2009 Amount Over Ultimate Limit
  1,866 AF
• Replenishment Fee
  4,600,000
• Other Seaside Basin Fees 800,000
• Sand City Desal Plant Lease 800,000
• Total Fees
  6,200,000

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Conservation Application Filing

• Further conservation needed due to reduced water
  supply
• 1.7M additional annual expenses for conservation
  items
• 5 rate increase for conservation expenses
  in addition to GRC
• Rates will impact large users more than average
  users
• Estimated water savings 300 AFY or 97M gallons
• Accelerated timeline interim phased decisions

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State Water Resources Control Board (SWRCB)
Draft Cease Desist Order (DCDO)

• Enforces Order 95-10, which limits Carmel River
  diversions to 3,376 AFY (interim goal of 11,285
  AFY)
• SWRCB Order 95-10 hearings 92 95
• Determine waters in valley underflow - not
  groundwater
• Allowed continued diversion of water from the
  Carmel River
• Required diligent pursuit of alternative water
  supplies
• Established measures to protect environment while
  diversions continued
• Plan B to Coastal Water Project, ASR, Sand City
  Desal, Recycled Water and REPOG
• SWRCB Public Hearing set
• Tuesday April 1, 2008 100 p.m. at Monterey
  Conference Center

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Proposed Reduction Schedule
Water Year Percent Reduction from Goal Max End of Year Diversion Amount
2008-09 15 9,592 AFY
2009-10 15 9,592 AFY
2010-11 20 9,028 AFY
2011-12 20 9,028 AFY
2012-13 35 7,335 AFY
2013-14 35 7,335 AFY
2014- 50 5,642 AFY

• Water year October 1 September 30
• Interim goal 11,285 AFY (used as base line)

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Investing in your water investing in your
future
California Public Utilities Commission Public
Advisors Office 505 Van Ness Avenue San
Francisco, California 94102 1-866-849-8390
(toll-free) [phone] Email
public.advisor_at_cpuc.ca.gov Case Number
A.08-01-027 CPUC Public Participation
Hearings May 28 7pm, Chualar Elementary
School May 29 2pm 6pm, Monterey City Hall
California American Water Questions?