EXHIBIT 3

Concepts for Stage 3 Revision to

Expanded Water Conservation and Standby Rationing Plan

Potential Water Conservation Actions

Mobile Water System monitoring/reporting with possible use restrictions to construction use only.

Expand baseline interior conservation (i.e. ultra-low consumption appliances)

Expand baseline exterior conservation (i.e., rain sensors, drip systems and landscaping guidelines)

Clarify reimbursement requirements of Cal-Am (audits, equipment, enforcement, advertising, efficient nozzles for restaurants (pre-rinse spray valve), etc.)

Improve leak responsiveness time (Cal-Am)

Local Cal-Am presence, including 24-hr hotline

Increase water waste penalties

Enforcement (waste, visitor-serving commercial, etc.)

Modify production goals

Jurisdiction participation

School (Educational Facility) Retrofit Program including waterless urinals

Promote dual-flush technology and waterless urinals (local testimony)

Encourage meter splits

Expand rebate program to commercial washers and weather-based irrigation controllers

Non-Residential Retrofit (Commercial sector)

Install CIMIS station on Peninsula or find other way to obtain weather/evapotranspiration information

Require closed-loop on refrigeration condensers

Commercial laundry retrofit requirement