California American Water Main Distribution System        
  Quarterly Water Supply Strategy and Budget: October - December 2009         
                       
  Proposed Production Targets by Source and Projected Use in Acre-Feet        
                       
  SOURCE/USE MONTH   YEAR-TO-DATE        
    Oct-09 Nov-09 Dec-09   Oct-08 - Aug-09 Percent        
                       
  Source                    
  San Clemente Reservoir 0 0 0   0 0.0%        
                       
  Carmel Valley Aquifer                    
          Upper Subunits 0 0 0   725 6.2%        
          Lower Subunits 864 736 654   8,667 74.4%        
                       
  Seaside Groundwater Basin                    
          Coastal Subareas 450 300 300   2,129 18.3%        
          Phase 1 ASR Recovery 0 0 0   122 1.0%        
  Total 1,314 1,036 954   11,643          
                       
  Use                    
         Customer Service 1,314 1,036 954   11,461          
         Phase 1 ASR Injection 0 0 0   182          
  Total 1,314 1,036 954   11,643 100.0%        
                       
  Text Box: Notes: 1. The budget reflects "below normal" inflow conditions and assumes that the monthly unimpaired inflows at the San Clemente Dam site during the October-December 2009 period will equal the flows that occurred during the September 4 through December 4, 2008 period, i.e., 175, 247, and 497 AF, respectively. 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. Total monthly proposed production for "Customer Service" in CAW's main system was calculated by multiplying total annual production (14,476 AF) times the average percentage of annual production for October, November, and December (9.08%, 7.16%, and 6.59% , respectively). The annual proposed production total was based on the assumption that production from the Coastal Subareas of the Seaside Groundwater Basin would not exceed 3,191 AF and production from Carmel River sources would not exceed 11,285 AF in WY 2009. The average production percentages were based on monthly data for customer service from WY 1998 to 2007. 4. Anticipated production for "Phase 1 ASR 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 Basin. 5. No surface water diversions from San Clemente Reservoir are assumed for this period based on concerns regarding water quality (elevated turbidity).