Working together.Achieving results.

Water IOU Drought Management

Jack Hawks

Joint Agency Workshop on California’s Drought Response

Sacramento, CA

August 28, 2015

CWA Overview• 113 Regulated Water IOUs

9 Class A water utilities (> 10,000 connections)

5 Class B water utilities (>2,000) 25 Class C water utilities (> 500) 74 Class D water utilities (< 500)

• 1.5 Million Customers• $1.4 billion annual

revenues• 6 Million Served

California PUC Jurisdiction

• Commission is responsible for ensuring that investor-owned water utilities deliver clean, safe, and reliable water to their customers at reasonable rates.

• 113 investor-owned water utilities and 13 investor owned sewer utilities under Commission jurisdiction,

• Division of Water & Audits (DWA) Processes utility rate and service change requests Investigates service quality issues Monitors, ensures compliance with CPUC, SWRCB, DWR

and CWC requirements

• DWA shares jurisdictional responsibility with SWRCB on water quality and drought management compliance.

Where We Are Today• April 1, 2015: Governor Brown’s Executive Order

25% statewide reduction in urban potable water use

• May 5, 2015: State Water Resources Control Board Adopts Res 2015-0032 and Emergency Regulation

– Prohibited uses, targeted reductions for 411 largest water districts– 4% to 36% conservation reduction standards

» Based on July – Sep 2014 reported figures compared to 2013» Monthly Water Use Reduction, R-GPCD Reports

• May 7, 2015: CPUC Adopts Resolution W-5041 Orders compliance with SWRCB Emergency Regulation Must file Schedule 14.1 to implement mandatory reductions

– Penalties for violating prohibited uses– Surcharges for exceeding reduction targets

SWRCB Emergency Regulation

Tariff Rule 14.1• Serves as Water Shortage Contingency Plan

• Details Prohibited Non-Essential, Unauthorized Uses

• Staged Mandatory Restrictions Stage 1 Water Alert – Limitations on water usage Stage 2 Water Shortage – Non-rate restrictions Stage 3 Water Shortage – Mandatory restrictions, fines

• Staged Mandatory Water Reductions (Schedule 14.1) Implementation of measures to achieve conservation

reduction standards Mandatory customer meetings in May/June – nearly 100

meetings attended by more than 16,000 customers Additional tariff rate schedules – penalties for violating

prohibited uses; surcharges for exceeding usage targets

Water IOU Performance• Water IOUs account for 60 of the 411 reporting water districts

8 at 36%; 8 at 32%; 9 at 28%; 9 at 24%; 6 at 20%; 8 at 16%; 5 at 12%; 7 at 8%

• In June, 50 of the 60 water IOU districts met or exceeded their conservation targets; 5 of the 10 within 5 percentage points

37 met or exceeded the state average reduction of 27%; 19 exceeded 35%; 8 exceeded 40%

30 had lower R-GPCD values than the state average

• In July, 50 of the 60 water IOU districts exceeded their targets; 7 of the 10 within 5 percentage points

35 met or exceeded the state average reduction of 31%; 23 exceeded 35 percent; 7 exceeded 40%

31 had lower R-GPCD values than the state average

For More Information:

• Apple Valley Ranchos Water – www.avrwater.com• California American Water – www.amwater.com/caaw/page22725.html• California Water Service Co. – www.calwater.com/conservation/drought• Golden State Water Co. – www.gswater.com/drought• Park Water Co. – www.parkwater.com/drought• San Gabriel Valley Water Co./Fontana Division – www.fontanawater.com• San Gabriel Valley Water Co./L.A. Division – www.sgvwater.com• San Jose Water Co. – www.sjwater.com/drought• Suburban Water Systems – http://www.swwc.com/suburban/conservation

Jack Hawksjhawks@calwaterassn.com

415.561.9650