California American Water Main Distribution System    
  Quarterly Water Supply Strategy and Budget: January - March 2009     
         
  Proposed Production Targets by Source and Projected Use in Acre-Feet    
                   
  SOURCE/USE MONTH   YEAR-TO-DATE    
    Jan-09 Feb-09 Mar-09   Oct-08 - Nov-08 Percent    
               
  Source          
  San Clemente Reservoir 0 0 0   0 0.0%    
               
  Carmel Valley Aquifer            
          Upper Subunits 47 81 90   59 2.7%    
          Lower Subunits 988 893 1,028   1,425 65.5%    
               
  Seaside Groundwater Basin            
          Coastal Subareas 0 0 0   693 31.8%    
          Phase 1 ASR Recovery 0 0 0   0 0.0%    
  Total 1,035 974 1,118          
               
  Use            
         Customer Service 945 864 993   2,177      
         Phase 1 ASR Injection 90 110 125   0      
  Total 1,035 974 1,118   2,177 100.0%    
                   
Text Box: Notes: 1. The budget reflects "dry year" inflow conditions and assumes that the monthly unimpaired inflows at the San Clemente Dam site during the December 2008-March 2009 period will equal the 75% exceedence flows, i.e., 991, 2,638, 3,979, and 4,511 AF, respectively. The exceedence values are based on simulated flows for the 1902-2008 period of record. 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 January, February, and March (6.39%, 5.84%, and 6.71%, 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. These values could change pending potential regulatory actions in 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 Injection" 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 production targets for CAW's wells in the Upper Carmel Valley are based on median production from these wells for these months during the 2000-2008 period. 7. The production targets for CAW's wells in the Coastal Subareas of the Seaside Basin, i.e., 0 AF, are based on the assumption that sufficient flow will occur in the Carmel River at the Highway 1 Bridge, i.e., 40 cubic feet per second, to allow CAW to shift its pumping to the Carmel Valley, consistent with SWRCB Order 98-04.