EXHIBIT 10-A
                 
California American Water Distribution System
  Quarterly Water Supply Strategy and Budget: April - June 2006   
                 
  Proposed Production Values by Source in Acre-Feet  
  Assuming Normal Inflow Conditions1  
                 
  SOURCE MONTH   YEAR TO DATE  
    Apr-06 May-06 Jun-06   Oct-05 - Feb-06 Percent  
                 
  San Clemente Reservoir 0 0 0   0 0.0%  
                 
  Carmel Valley Aquifer              
     Upper  238 129 57   273 5.3%  
     Lower 1,062 930 920   3,641 71.2%  
                 
  Seaside Ground Water Basin              
  Coastal Subareas 0 300 500   1,200 23.5%  
                 
      Subtotals:              
         -- Production 1,169 1,359 1,477   4,986    
         -- Seaside Injection 131 0 0   128    
  Total 1,300 1,359 1,477   5,114 100.0%  
                 
Text Box: Notes: 1. The budget reflects "normal" inflow conditions and assumes that the monthly inflows at the San Clemente Dam site during the April-June 2006 period will equal the 50% 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 April - June 2006 period is based on Cal-Am production of 3,074 acre-feet from the Monterey Peninsula Water Resources System, including 800 AF from the coastal subareas of the Seaside Groundwater Basin, and 2,274 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 April, May and June (based on production data from 1988 to 1997, adjusted for an assumption that production from the Seaside Groundwater Basin would not exceed 3,500 AF per year). 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 4.0 cfs in April and 2.1 cfs in May from combined sources upstream of Scarlett Well and 0.96 cfs in June from combined capacities of Russell Wells Nos. 2 and 4.