1. Julie M. Spacht Water Executive Managing Engineer Los Angeles Department of Water and Power

2.  Communication  Rate Payers, Decision Makers, Stakeholders, Regulators, Press, Institutions  Solid numbers  Cost of Service Studies….  Communication- closing the loop

3.  Geography  Scarcity/ uncertainty  Dispersion  Political  Layers of jurisdiction and influence  Ag/ Urban/ Environmental Uses  Progressive outlook  Legal issues  Prop 218  Legal activism  Water Rights

4. Public  We conserve and you raise the rate  Getting less for more  I need more than others because…  Social Justice issues  Affordabilty  Equity  Sustainability Utility  Revenues drop due to conservation  Revenue drops even more than amount conserved.  Added costs to promote conservation.  Uncertainty causes additional costs

5.  Rate Stabilization Accounts  Setting priorities through communication  Alternative revenue streams  Alternative methods of financing

6.  Fixed Rate  Tiered Rates  Shortage year rates  Programmatic- dedicated Pass- throughs  Decoupling

7. ConservationRevenue Fixed RateNoYes Tiered RatesYesSome Shortage year ratesYes Programmatic- Pass-throughsYes DecouplingYes

8.  Provide stability to important programs  Provide oversight by decision makers  Collect only what in necessary

9.  Revenues ABOVE sales target are returned to customers.  Revenues BELOW sales target are recovered through charges over the next calendar year. Annual Sales Target Year-end Revenues ABOVE Sales Target Year-End Revenues BELOW Sales Target Collect $ Return $

10.  Drought Insurance Leveling risk  Interruptible Retail Water  Differing Quality and Services

11.  Building Trust  Image management  Don’t talk to Public only when you need a rate increase  Build networks

12.  State/ Regional Drought - Local Issue  Not everything will work for everyone  Water means different things to different Stakeholders  There is no real shortage of water

13. THANK YOU julie.spacht@ladwp.com