1. Water Utilities Update Low-Income Oversight Board Division of Water and Audits Viet (Kevin) Truong February 23, 2016

2. Topics –Drought Update –Drought Actions by CPUC –Low-Income Discounts in 2015 –Low-Income Discount Rulemaking –New Legislation 2

3. 3 California Remains in a Drought Despite El Niño, having average year Three wet days in February so far 1.5 months left in rainy season

4. 4 Mandatory Restrictions June 2015 to Feb 2016 goal: –Save 1.2 Million Acre-Feet As of Dec 2015: –Saved 1.09 MAF IOU’s contributed 0.18 MAF or 17% of total The savings goal will be reached »IOU’s are doing their share

5. Drought Actions by CPUC 5 Mandatory water restrictions extended through October 2016 –Adopted on Feb 2 nd by SWRCB Save additional 1.0 MAF –District Targets of 4% - 36% remain Districts may apply to reduce target by up to 8% –3 Reduction Factors: Climate, Growth, Drought Resilient Supply CPUC issued Res. W-5082 on Feb 11 th –IOU’s required to comply with SWRCB’s new restrictions

6. Example of Drought Resilient Supply: Recycled Water Projects Two Resolutions Adopted by CPUC on Feb. 11 th –California Water Service Company (W-5078) New recycled supply for Apple II Campus –260 Acre Feet/Year –San Gabriel Valley Water Company (W-5079) First phase expansion of existing recycled distribution system in El Monte –660 AFY at build out

7. 7 Low-Income Discounts in 2015 Energy: $1.7 Billion Telecommunication: $723 Million »Water: $27 Million -Up from $24M in 2014 Water Utilities are doing their part

8. Low-Income Discount Rulemaking Purpose Standardize Low-Income Programs -Called for in 2010 Water Action Plan Goals Simplify programs Uniform discounts Easy to understand for Low-Income Customers  Several differences between the 9 Low-Income Programs 8

9. Discount Comparison 9 UtilityNameMonthly Discount for 5/8" Metered Apple Valley CARW $8.38 credit California Water LIRA 50% off service charge California-American H2O 20% off service charge and Tier 1 & 2 quantity charges Golden State CARW Varied credits ($3 - $17) amongst districts Great Oaks LICAP 50% off service charge Park CARW $6.65 credit San Gabriel CARW - Fontana District: Fixed service charge of $8.00 - LA District: 50% off service charge* San Jose WRAP 15% off total bill Suburban WISH $6.50 credit *Application pending to match discounts

10. 10 New Legislation Assembly Bill 1180 Existing law authorizes utilities to charge transaction fees for Credit Card Payments Those who use credit cards, pay a convenience fee AB 1180 would authorize utilities to operate a pilot program that recovers Credit Card processing fees from all customers ̶ No convenience fee for credit card users ̶ Fees are rolled into water rates  Prohibits collection of costs of pilot program from low-income customers

11. Thank You Viet (Kevin) Truong Utilities Engineer CPUC – Division of Water and Audits (415) 703-1353 vt4@cpuc.ca.gov 11