“Growth in Water Utility CARW/LIRA Programs – February 2013 Update”

1. “Growth in Water Utility CARW/LIRA Programs – February 2013 Update” California Water Association Low-Income Oversight Board February 27, 2013 Burbank, CA

2. Low-Income Data-Sharing: Program and Goals • Results of Data-Sharing w/ Energy Utilities (by company) • Increases in IOWC CARW/LIRA Participation • IOWC Low-Income Conservation Programs • Current Proceedings Affecting CARW/LIRA Programs • Conclusions/Observations/Lessons Learned Presentation Overview

3. 10 Class A Companies • 6 Class B Companies • 22 Class C Companies • 82 Class D Companies • 120 Regulated Water IOUs

4. Total Service Connections: 1.47 million out of 7.5 million total in the state (≈ 20%) • Population Served: 5.6 million out of 37 million (≈15%) • Class A Company Annual Revenues: $1.4 Billion • PG&E ($15b); SCE ($10.6b); Sempra ($7.2b) • Customer Base: 81-90% residential • Water Revenues from Res./Commercial Customers: 57% - 93% - most companies derive >80% of theirrevenues from their smaller customers IOWCs in California

5. Low-Income Data Sharing • Program Details • Data-sharing w/energy utilities • Hard matches automatically enroll in IOWC LIRA/CARW programs • Soft matches automatically enrolled upon verification

6. Low-Income Data Sharing • Goals • Align energy and water IOU CARE/LIRA programs • Increase water utility LIRA/CARW penetration • Class A IOWC 2007 CARW/LIRA Rate: 16.1% • Energy Utilities’ CARE 2008 Rate: 78.8% • Long-term goal of achieving energy IOU penetration levels

7. Apple Valley Ranchos Water • 168% increase in participation in LIRA Program • Surcharge increase (recovery from non-LIRA qualifying customers and other customer classes) - will remain at $0.55/month until next GRC (2015) • California American Water • 267% increase in participation • Surcharge increase - TBD • California Water Service • 129% increase in participation • Surcharge increase from $0.01 to $0.06per Ccf • Temporary surcharge:$0.0182/Ccf Low-Income Data Sharing Results

8. Golden State Water • 45% increase in participation in CARW Program • Surcharge increase TBD (pending GRC application) • Great Oaks Water • 440% increase in participation in LIRA Program • Surcharge increase $0.04/Ccf • Park Water • 334% increase in participation in LIRA Program • Surcharge increase from $2.27/month to $0.00 to $6.65/month Low-Income Data Sharing Results

9. San Gabriel Valley Water • 66% increase in participation in CARW program • Surcharge increase from $0.00 to $0.1297/Ccf (Fontana Water Co. Division – effective when current GRC is completed) and (probably) from $0.00 to $0.0637/Ccf for the Los Angeles Division (in its next GRC) • San Jose Water • 200%increase in participation in WRAP • Surcharge increase TBD • Suburban Water • 59%increase in participation in LIRA Program • Surcharge decrease from $0.031/Ccf to $0.014/Ccf • Valencia Water • 378% increase in participation in LIRA Program • Surcharge increase from $0.04/month to $0.91/month Low-Income Data Sharing Results

10. Pre-SharingAfter • Apple Valley Ranchos Water 1,707 4,567 • California American Water 5,477 20,102 • California Water Service 40,965 93,732 • Golden State Water 30,304 43,930 • Great Oaks Water 431 2,327 • Park Water 2,266 9,828 • San Gabriel Valley Water 22,455 37,312 • San Jose Water 7,994 24,213 • Suburban Water (thru 12/2012) 5,466 8,699 • Valencia Water 446 2,130 Increases in Participating Customers

11. 2009Current • Apple Valley Ranchos Water: 6.9% 23.8% • California American Water: 14.5% 52.9% • California Water Service: 41.0% 94.3% • Golden State Water: 31.1% 76.0% • Great Oaks Water: 13.2% 72.9% • Park Water: 7.1% 36.2% • San Gabriel Valley Water: 25.9% 43.0% • San Jose Water: 19.9% 74.1% • Suburban Water: 5.5% 81.5% • Valencia Water: 6.5% 30.5% • Methodology: Each company’s residential customer count was applied to its respective household eligibility percentage, as derived in the CPUC Div. of Water & Audits report, “Assessment of Water Utility Low-Income Assistance Programs” (October 2007; page 17), to derive an estimate of LIRA-eligible customers. The 2009 and 2012 LIRA customer totals were divided by the estimate of LIRA-eligible customers to calculate the penetration percentages above. Current Penetration Increases

12. LIRA Customers as % of Total Residential Customers • YE 2011Current • Apple Valley Ranchos Water 9.9% → 25.9% • California American Water 3.7% → 13.1% • California Water Service 12.3% → 23.5% • Golden State Water 15.0% → 21.0% • Great Oaks Water 2.2% → 12.1% • Park Water 8.4% → 39.2% • San Gabriel Valley Water 28.1% → 47.8% • San Jose Water 3.9% → 12.3% • Suburban Water 5.1% → 12.2% • Valencia Water 1.5% → 8.2%

13. The information-sharing program has been successful – dramatic increases to date in water IOU LIRA programs • The IT issues with the energy utilities were far more complex and difficult than originally contemplated • LIRA/CARW eligibility criteria limits ability of water IOUs to achieve high penetration levels of energy IOUs • CPUC’s eligibility percentages derived from 2000, 2006 census data and encompass all residential citizens; water IOU participation limited to single-family dwellings, so eligibility universe should be limited to single-family dwellings • Primary eligibility based on customer participation in the energy CARE program; however, water companies solicit all residential customers • Difficulty reconciling existing recertification procedures with the automatic enrollment from the data-exchange program Lessons Learned