California American Water (CAW) Main Distribution System    
  Quarterly Water Supply Strategy and Budget: July - September 2007     
         
  Proposed Production Values by Source in Acre-Feet    
  Assuming "Critically-Dry" Inflow Conditions    
                   
  SOURCE/USE MONTH   YEAR-TO-DATE    
    Jul-07 Aug-07 Sep-07   Oct-06 - May-07 Percent    
               
  Source          
  San Clemente Reservoir 0 0 0   0 0.0%    
               
  Carmel Valley Aquifer            
          Upper Subunits 31 31 30   353 4.2%    
          Lower Subunits 1,208 1,208 1,055   6,104 72.2%    
               
  Seaside Groundwater Basin            
          Coastal Subareas 347 347 347   1,994 23.6%    
               
  Use            
         Customer Service 1,586 1,586 1,432   8,439      
         Seaside Injection 0 0 ---   12      
  Total 1,586 1,586 1,432   8,451 100.0%    
                   
  Text Box: Notes: 1. The budget reflects "critically-dry" inflow conditions and assumes that the monthly inflows at the San Clemente Dam site during the July-September 2007 period will approximate the flows that occurred during Water Year 1990, which was classified as a critically-dry year. 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. Anticipated production for "Customer Service" for the July - September 2007 period is based on CAW production of 4,604 acre-feet (AF) from the Monterey Peninsula Water Resources System, including 3,563 AF from the Carmel River Basin and 1,041 AF from the coastal subareas of the Seaside Groundwater Basin. Total monthly production for the system was calculated by multiplying total annual production times the average fraction of annual production for July, August, and September (based on production data from 1986 to 2006, adjusted for an assumption that production from the Seaside Groundwater Basin would not exceed 3,504 AF and production from the Carmel River Basin would not exceed 11,285 AF in WY 2007). 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 CAW's sources in the Carmel River Basin. "Total" monthly CAW "use" includes water for customer service and water for injection into the Seaside Groundwater Basin. No diversions for injection are assumed for the July through September period. 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. Anticipated monthly production from the Upper Carmel Valley Alluvial Aquifer Subunits is based on the assumption that CAW's operations will be governed by "low-flow" rules.