1. Citizens Coordinate for Century 3 February 27, 2014 Dennis A. Cushman, Assistant General Manager San Diego County Water Authority

2.  Water Authority and San Diego business community support a Bay-Delta fix ◦ Supported 2009 legislation that established co-equal goals:  Water Supply Reliability  Ecosystem Restoration  San Diego ratepayers pay the second-largest share of State Water Project costs  Water Authority Board of Directors: ◦ Bay-Delta Policy Principles guide review of a Delta solution ◦ No water agency in California has undertaken a more rigorous, independent evaluation of BDCP ◦ Has not endorsed a specific project or solution 2

3. Increasing San Diego County's Water Supply Reliability through Supply Diversification Metropolitan Water District Imperial Irrigation District Transfer All American & Coachella Canal Lining Local Surface Water Groundwater Conservation (existing and additional) 2013 1991 Total = 645 TAF Recycled Water 297 TAF 46% 46 TAF 7% 21 TAF 3% 27 TAF 4% 80 TAF 13% 103 TAF 16% 550 TAF 95% 28 TAF 5% 2020 Total = 779 TAF 231 TAF 30% 48 TAF 6% 27 TAF 4% 44 TAF 6% 103 TAF 13% 80 TAF 10% 190 TAF 24% 56 TAF 7% Seawater Desalination Total = 578 TAF TAF=Thousand Acre-Feet 71 TAF 11% 3

4.  1990: 672,800 acre-feet  2013: 297,000 acre-feet  2020: 231,000 acre-feet: 66% less than 1990 4

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6. 6 Most of MWD’s Customers Plan to Reduce Their Reliance on MWD

7. 7 2013 Water Contractors Pay 68% $16.8 Billion 2014 Water Contractors Pay up to 100% $25 Billion

8. 8 San Diego County Water Authority $1.1 Billion to $2.2 Billion San Diego County Water Authority 54,330 – 76,786 AF Potential Cost to San Diego Ratepayers? Potential Water Supply Benefit to San Diego?

9.  “But it is a voluntary project. There’s nothing mandatory about this. The State cannot impose these costs on anyone, including yourselves.” -- Dr. Gerald Meral, former Deputy Secretary, Natural Resources Agency, speaking to the San Diego County Water Authority Board of Directors, May 23, 2013 ◦ The State of California may not impose these costs on the Water Authority, but MWD can through rate increases ◦ MWD can obligate the Water Authority and its ratepayers to pay billions of dollars for the BDCP, without the consent of the Water Authority’s Board of Directors ◦ The Water Authority should have a choice over water resource investments made on behalf of its 3.1 million customers and the region’s $188 billion economy 9

10.  MWD has pledged to pay 25% or more of the BDCP project costs ◦ MWD relies on water sales for 85% of its revenues ◦ MWD’s member agencies are not obligated to buy any MWD water ◦ MWD’s member agencies refuse to commit to back up MWD’s contractual obligation to DWR with contracts of their own  With MWD’s member agencies reducing their purchases of MWD water, who will be around to pay the costs of BDCP? 10

11. 11 MWD projects average annual rate increases of 1.5% to 5% with BDCP Costs

12. 12 MWD Tier 1 Treated Rate MWD Tier 1 Treated (% Increase) MWD Tier 1 Untreated Rate MWD Tier 1 Untreated (% Increase) 2005$4436.0 $331 1.5 2006$4532.3 $331 0 2007$4785.5 $331 0 2008$5086.3 $351 6.0 2009$57914.0 $412 17.4 2010$70121.1 $484 17.5 2011$7446.1 $527 8.9 2012$7946.7 $560 6.3 2013$8476.7 $593 5.9 2014$8905.1$5930 Total % Increase100.9%79.2% Compounded Annual Growth Rate 7.9%6.2%

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15. “The BDCP Encourages Public Participation”

16. Water Authority Asking Questions

17. 1. After accounting for local supply development, what is the real demand for water from the Delta? 2. What is the right-sized project to meet the demand? 3. Where is the financing plan to pay for the project? 4. Who is going to commit to pay for it? 5. Is participation in the BDCP conveyance project voluntary for the San Diego County Water Authority? 6. Should MWD contractually commit to pay billions of dollars without contractual commitments from its 26 member agencies to pay it? 7. How will Water Authority ratepayers be protected from paying a disproportionate share of BDCP costs? 17

18.  Send comment letters to: BDCP Comments Ryan Wulff, National Marine Fisheries Service 650 Capitol Mall, Suite 5-100 Sacramento, CA 95814 For More Information on the Water Authority’s Ongoing Analyses of BDCP and Alternatives: www.sdcwa.org/bdcp