Water Utility Shut-Offs and the Credit Crisis Seaneen M Wilson CPUC – Division of Water & Audits

Class A Water Shut-Offs – Six of ten Class A’s performed more shut-offs in 2008 than any other year in period. Annual increase/decrease in shut-offs range from -28.5% in 2005 to 58.6% in 2008.

Class A Water Shut-Offs – 2008 Three of ten Class A’s performed more shut-offs in the last quarter of 2008 than in the balance of the year. Monthly increase/decrease in 2008 shut-offs range from -57% in November to 163.8% in October.

Class A Water Credit Policies All but one Class A water utility is maintaining current credit policies of providing LIRA Program, Military Relief Program, adjustment of payment schedule upon request on a case by case basis. Park Water recently changed charging late fee from 19 days to 23 days from billing date. Cal Water has started pilot credit card payment program, and believe is being utilized as "bridge funding" to keep service going when facing termination of service. Utilities are monitoring situation – some see rise in shut-offs, while others do not. When customer water shut off for non-payment, Class A water utilities require payment of unpaid bills prior to reconnection. Customer must pay all unpaid bills. Deposit can be used to pay unpaid bills. Reconnection fee ranges from $10 - $40.

Annual Shut-Offs for Non-Payment Utility Cal Water22,18526,51419,30119,73020,880 Golden State13,00215,46516,48320,69724,873 San Jose8,5338,660 9,7968,578 Cal Am5,8474,7245,8678,73813,855 San Gabriel7,8509,82711,66615,21814,002 Suburban5,2135,6395,3846,3098,603 Park1, ,1971,5642,071 Apple Vlly ,2451,4641,484 ValenciaN/A Great Oaks

2008 Shut-Offs for Non-Payment UtilityJanFebMarAprilMayJuneJulyAugSeptOctNovDec CWS2,3201,9732,0642,4912,1461,6551,7651,3521,3901,4651,0571,192 GS2,7251,9891,7672,1471,6762,0711,9191,9412,3572,5462,0041,731 SJW CalAm2,1811,0481,3101, ,0971,2351, , SGVW1,3451, ,0681,3351,0531,2111,2321,1691,0071,0661,382 Sbn Park AVR Val GO