California American Water Main Distribution System                                
  Quarterly Water Supply Strategy and Budget: October - December 2010                                
                                       
  Proposed Production Values by Source in Acre-Feet                                
                                                 
  SOURCE/USE MONTH   YEAR-TO-DATE                                
    Oct-10 Nov-10 Dec-10   Oct-09 - Aug-10 % of YTD % of Annual Target  
               
  Source          
  San Clemente Reservoir 0 0 0   0 0.0% - -  
               
  Carmel Valley Aquifer            
      Upper Subunits 0 0 0   334 3.1% - -  
      Lower Subunits 687 447 446   8,719 70.3% 76.2%  
               
  Seaside Groundwater Basin            
      Coastal Subareas 0 0 270   2,842 26.3% 79.3%  
      Phase 1 ASR Recovery 496 480 135   0 0.0% 0.0%  
      Sand City Desalination 25 25 25   40 0.4% 13.3%  
  Total 1,208 952 876   11,935      
               
  Use            
      Customer Service 1,208 952 876   10,824 100.0% 77.3%  
      Phase 1 ASR Storage 0 0 0   1,111      
  Total 1,208 952 876   11,935  
  Text Box: Notes: 1. The budget conservatively reflects a transition from "extremely wet" ramping down monthly to "normal" inflow conditions and assumes that the monthly unimpaired inflows at the San Clemente Dam site during the September 2010 - December 2010 period will equal 380, 463, 887, and 2,294 AF, respectively, based on the 1902-2009 record at SCD. 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 production for "Customer Service" in CAW's main system was calculated by multiplying total annual production (13,299 AF) times the average percentage of annual production for October, November, and December (9.08%, 7.16%, and 6.59%, respectively). The annual production total was based on the assumption that production from the Coastal Subareas of the Seaside Groundwater Basin would not exceed the 3,170 AF ( 3,087 AF annual allocation + 83 AF of remaining carryover from WY 2009), 1,111 AF would be recovered from ASR Phase 1 for customer service, and production from Carmel River sources for customer service would not exceed 9,018 AF in WY 2011. The average production percentages were based on monthly data for customer service for the CAW Main System from WY 1998 to 2007. 4. Anticipated production for "Phase 1 ASR Storage" will be '0' as the diversion season ends May 31 of each year, and does not resume until the following December. "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 (SCR) are assumed for this period. SCR is currently drawn down as of August 1, 2010. 6. The production target for CAW's wells in the Upper Subunits of the Carmel Valley Aquifer is set to 0 AF for October through December based on CAW's goal to avoid use of these wells during this period. However, production could be higher under existing State water rights and interagency operating agreements. 7. The production targets for CAW's wells in the Seaside Coastal Subareas are based on the need for CAW to produce its full Standard Production Allocation during WY 2011 to be in compliance with SWRCB WRO No. 95-10 and 2009-0060.