1. Working together. Achieving results. Water IOU Drought Management Jack Hawks Joint Agency Workshop on California’s Drought Response Sacramento, CA August 28, 2015

2. CWA Overview 113 Regulated Water IOUs  9 Class A water utilities (> 10,000 connections)  5 Class B water utilities (>2,000)  25 Class C water utilities (> 500)  74 Class D water utilities (< 500) 1.5 Million Customers $1.4 billion annual revenues 6 Million Served

3. California PUC Jurisdiction Commission is responsible for ensuring that investor- owned water utilities deliver clean, safe, and reliable water to their customers at reasonable rates. 113 investor-owned water utilities and 13 investor owned sewer utilities under Commission jurisdiction, Division of Water & Audits (DWA)  Processes utility rate and service change requests  Investigates service quality issues  Monitors, ensures compliance with CPUC, SWRCB, DWR and CWC requirements DWA shares jurisdictional responsibility with SWRCB on water quality and drought management compliance.

4. Where We Are Today April 1, 2015: Governor Brown’s Executive Order  25% statewide reduction in urban potable water use May 5, 2015: State Water Resources Control Board  Adopts Res 2015-0032 and Emergency Regulation –Prohibited uses, targeted reductions for 411 largest water districts –4% to 36% conservation reduction standards »Based on July – Sep 2014 reported figures compared to 2013 »Monthly Water Use Reduction, R-GPCD Reports May 7, 2015: CPUC Adopts Resolution W-5041  Orders compliance with SWRCB Emergency Regulation  Must file Schedule 14.1 to implement mandatory reductions –Penalties for violating prohibited uses –Surcharges for exceeding reduction targets –Fines

5. SWRCB Emergency Regulation

6. Tariff Rule 14.1 Serves as Water Shortage Contingency Plan Details Prohibited Non-Essential, Unauthorized Uses Staged Mandatory Restrictions  Stage 1 Water Alert – Limitations on water usage  Stage 2 Water Shortage – Non-rate restrictions  Stage 3 Water Shortage – Mandatory restrictions, fines Staged Mandatory Water Reductions (Schedule 14.1)  Implementation of measures to achieve conservation reduction standards  Mandatory customer meetings in May/June – nearly 100 meetings attended by more than 16,000 customers  Additional tariff rate schedules – penalties for violating prohibited uses; surcharges for exceeding usage targets

7. Water IOU Performance Water IOUs account for 60 of the 411 reporting water districts  8 at 36%; 8 at 32%; 9 at 28%; 9 at 24%; 6 at 20%; 8 at 16%; 5 at 12%; 7 at 8% In June, 50 of the 60 water IOU districts met or exceeded their conservation targets  Of the 10 still working toward their targets, six exceeded the state average reduction of 25 percent, and two of them exceeded 30 percent In July, ?? of the 60 water IOU districts met or exceeded their conservation targets  Of the ?? still working toward their targets, ?? exceeded the state average reduction of 25 percent, and ?? of them exceeded 30 percent

8. Thank You Jack Hawks California Water Association jhawks@calwaterassn.com 415.561.9650