EXHIBIT13-A
                 
California American Water Distribution System
  Quarterly Water Supply Strategy and Budget: January - March 2006   
                 
  Proposed Production Values by Source in Acre-Feet  
  Assuming Normal Inflow Conditions1  
                 
  SOURCE MONTH   YEAR TO DATE  
    Jan-06 Feb-06 Mar-06   Oct-05 - Nov-05 Percent  
                 
  San Clemente Reservoir 0 0 0   0 0.0%  
                 
  Carmel Valley Aquifer              
     Upper  31 52 57   57 2.4%  
     Lower 783 937 1,092   1,457 60.8%  
                 
  Seaside Ground Water Basin              
  Coastal Subareas 184 0 0   884 36.9%  
                 
      Subtotals:              
         -- Production 928 866 1,014   2,397    
         -- Seaside Injection 70 122 135   0    
  Total 998 988 1,149   2,397 100.0%  
                 
Text Box: Notes: 1. The budget reflects "normal" inflow conditions and assumes that the monthly inflows at the San Clemente Dam site during the January-March 2006 period will equal the 62.5% exceedence frequency flow, based on the 1902-2005 simulated period of record and represents the low end of the normal range of inflows. 2. The annual budget period corresponds to the Water Year, which begins on October 1 and ends on September 30 of the following year. 3. Anticipated production for the January - March 2006 period is based on Cal-Am production of 3,135 acre-feet from the Monterey Peninsula Water Resources System, including 184 AF from the coastal subareas of the Seaside Groundwater Basin, and 2,951 AF from the Carmel River Basin. Total monthly production for the system was calculated by multiplying total annual production times the average fraction of annual production for October, November and December (based on production data from 1988 to 1997). 4. Anticipated production for "Seaside Injection" is based on an average diversion rate of approximately 1,000 gallons per minute (gpm) or 4.4 AF per day from Cal-Am's sources in the Carmel River Basin. "Total" monthly Cal-Am includes water for customer needs and water for injection into the Seaside Ground Water Basin. 5. No surface water diversions from San Clemente Reservoir are assumed for this period based on concerns regarding water quality (elevated turbidity) and the physical in ability to withdraw water from the reservoir due to sedimentation. 6. Anticipated monthly production from the Upper Carmel Valley Aquifer is based on continuous pumping rate of 0.5 cfs in January and 0.93 cfs from combined capacities of Russell Wells No. 2 and 4.