1. Joint Agency Workshop on California's Drought Response August 28, 2015 Karen Norene Mills California Farm Bureau Federation kmills@cfbf.com

2. Broad Range of Impacts to Agriculture (Sampling of 2015 Ag Alert ® Articles – Water Crisis Series)  Landscapes are shifting to drought-tolerant plants Landscapes are shifting to drought-tolerant plants  New estimate of losses from drought shows an increase New estimate of losses from drought shows an increase  Drought forces beekeepers to alter operations Drought forces beekeepers to alter operations  Senate bill marks next step in federal drought action Senate bill marks next step in federal drought action  Citrus growers try to survive water cutbacks Citrus growers try to survive water cutbacks  Trees wither as their water supply runs dry Trees wither as their water supply runs dry  Rice acreage cuts affect ag aviators, economy Rice acreage cuts affect ag aviators, economy  More restrictions hit state’s water supplies More restrictions hit state’s water supplies  Cuts in California rice open doors for competitors Cuts in California rice open doors for competitors  How the drought affects farm safety How the drought affects farm safety  Cotton acreage may be lowest since the 1920s Cotton acreage may be lowest since the 1920s  Officials prepare for impact of lingering dry weather ( December 25, 2013) Officials prepare for impact of lingering dry weather

3. EFFECTS OF THE DROUGHT MAY CHALLENGE FORECASTING TO SET ELECTRIC RATES PG&E GENERAL RATE CASE PHASE 2 (CFBF TESTIMONY DECEMBER 2013, MARGINAL COST COMPARISONS) 

4. MANAGING ELECTRIC RATES AND USAGE  Statewide $587 million in increased pumping costs for 2015.  Importance of Electric Rate Design to Manage Water Usage – Example, PG&E Schedules AG-R and V Split Week Time of Use allows growers in groundwater dependent areas the opportunity to stagger their irrigation schedule and minimize water supply reliability problems.  Integration of Technology in Operations.  Structural Changes to Rate Schedules.  Managing costs - Customers facing electric rate increases from 2012 to 2014 of over 30%.  Agriculture’s use of aggregation for net metering.