EXHIBIT 10-E
	DERIVATION OF WATER RATIONING TRIGGERS FOR THE MONTEREY PENINSULA WATER RESOURCES SYSTEM FOR WATER YEAR 2004 (All Values are in Acre-Feet)
		MAY-SEPTEMBER		CARRYOVER					TOTAL STORAGE
		DEMAND		STORAGE					REQUIRED ON MAY 1
				Percent of Annual Demand					Water Rationing Stage
				100%	67%	33%	0%		4	5	6	7
									Imposed if storage is less than:
	CAL-AM	7,749		15,285	10,241	5,044	0		23,034	17,990	12,794	7,749
	NON CAL-AM	1,861		2,912	1,951	961	0		4,773	3,812	2,822	1,861
	TOTAL	9,610		18,197	12,192	6,005	0		27,807	21,802	15,615	9,610
Notes: 1.   The May-September period refers to the remainder of the current water year. 2.   Carryover storage refers to the volume of usable surface and ground water that is in storage at the end of the current water year and is projected to be available for use at the beginning of the following water year. 3.   Total storage refers to the combination of demand remaining from May 1 to the end of the current water year and carryover storage for the next water year that is required to avoid imposing various levels of water rationing.  The values in bold type represent the storage triggers that would be used for the system in Water Year 2004.  The values are based on the current production limit for Cal-Am set by the State Water Resources Control Board in Order No. WR 95-10, and the production that was reported for non Cal-Am users from the Monterey Peninsula Water Resources System in Water Year 2003. 4.  The rationing triggers are based on physical water availability and do not account for legal or environmental constraints on diversions from the Carmel River system.
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