ITEM:		ACTION ITEMS
20.	DISCUSSION OF CALIFORNIA AMERICAN WATER UNACCOUNTED FOR WATER LOSSES
Meeting Date:			November 16, 2009	Budgeted:	N/A
From:			Darby Fuerst,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Darby Fuerst	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: Director Brower has asked that issue of California American Water’s (Cal-Am) unaccounted-for-water losses be presented to the Board for discussion. Unaccounted-for-water losses are defined as the difference between the quantity of water recorded at production meters and the quantity of water recorded at the users’ meters or estimated as reasonable use. Unaccounted-for-water uses include unknown leakage, stolen water, unreported fire department usage, unreported street sweeping, unrecorded construction water, and customer meters that under register the amount of water delivered. The District’s unaccounted-for-water use standard is seven percent, calculated as the amount of unaccounted-for-water use in acre-feet divided by the total amount of water produced in acre-feet. In Water Year (WY) 2009, Cal-Am reported total well production to serve customers in its main system of 13,099 acre-feet and total “point of delivery” of 11,519 acre-feet (Exhibit 20-A). Accordingly, Cal-Am’s unaccounted-for-water uses in its main system in WY 2009 were 1,580 acre-feet or 12.1 percent of total production.

As adopted, State Water Resources Control Board (SWRCB) Order WR 2009-0060 requires Cal-Am to reduce its system losses by five percent, i.e., from 12 percent to seven percent, in WY 2010. When applied to Cal-Am’s new base diversion from Carmel River, this five percent reduction in system losses equates to 549 acre-feet. Similarly, California Public Utility Commission (CPUC) Decision 09-07-021 set nine percent as the annual target for Cal-Am’s main system in the 2009-2011 period and created an unaccounted-for-water penalty/reward program. Under this program, if the nine percent standard is met, Cal-Am will earn a financial reward. If the nine percent standard is not met, Cal-Am will incur a financial penalty. Staff will provide additional information regarding Cal-Am’s current unaccounted-for-water use in its main system and how it relates to current standards specified by the District, the SWRCB, and the CPUC at the November 16, 2009 meeting.

RECOMMENDATION: The Board should receive the information presented at the November 16 Board meeting concerning Cal-Am’s current unaccounted-for-water use and provide direction to staff regarding further actions.

EXHIBITS

20-A Cal-Am main WDS report for Water Year 2009

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