California American Water Main Distribution System    
  Quarterly Water Supply Strategy and Budget: October - December 2008     
                   
  Proposed Production Values by Source in Acre-Feet    
                   
  SOURCE/USE MONTH   YEAR-TO-DATE    
    Oct-08 Nov-08 Dec-08   Oct-07 - Aug-08 Percent    
                   
  Source                
  San Clemente Reservoir 0 0 0   0 0.0%    
                   
  Carmel Valley Aquifer                
          Upper Subunits 31 30 31   566 4.5%    
          Lower Subunits 862 629 594   9,167 72.4%    
                   
  Seaside Groundwater Basin                
          Coastal Subareas 450 400 350   2,927 23.1%    
          Phase 1 ASR Recovery 0 0 0   60 0.5%    
                   
  Use                
         Customer Service 1,343 1,059 975   12,600      
         Phase 1 ASR Storage 0 0 0   60      
  Total 1,343 1,059 975   12,660 100.0%    
                   
                   
  Text Box: Notes: 1. The budget reflects "critically-dry year" inflow conditions and assumes that the monthly unimpaired inflows at the San Clemente Dam site during the October-December 2008 period will approximate the flows that occurred in 2007, i.e., 130, 250, and 270 AF during the September through November 2007 period. 2. The annual budget period corresponds to the Water Year, which begins on October 1 and ends on September 30 of the following Calendar Year. 3. Total monthly production for "Customer Service" in CAW's main system was calculated by multiplying total annual production (14,789 AF) times the average percentage of annual production for October, November, and December (9.08%, 7.16%, and 6.59%, respectively). The annual production total was based on the assumption that production from the Coastal Subareas of the Seaside Groundwater Basin would not exceed 3,504 AF and production from Carmel River sources would not exceed 11,285 AF in WY 2009. The average production percentages were based on monthly data for customer service from WY 1998 to 2007. 4. Anticipated production for "Phase 1 ASR Storage" is based on an average diversion rate of approximately 1,000 gallons per minute (gpm) or 4.4 AF per day from CAW's sources in the Carmel River Basin. "Total" monthly CAW "Use" includes water for customer service and water for injection into the Seaside Basin. 5. No surface water diversions from San Clemente Reservoir are assumed for this period based on concerns regarding water quality (elevated turbidity) and lowered water levels required by the Division of Dam Safety as part of the San Clemente Reservoir Drawdown Project. 6. The target production values for the Seaside Coastal Subareas are based on the targets developed for the first quarter of WY 2008.