Save a Buck Status & Transition to Member Agency Fully Funded Program

1. Save a Buck Status & Transition to Member Agency Fully Funded Program Gary Tilkian December 17, 2009

2. Overview • Less than 1% of Metropolitan funds remaining a • Reservations increased dramatically over the last two weeks (e.g., $897,774 last week) • Customers will not receive confirmed reservations, but information will be captured & will be given reservations if funds become available • Transition to Member Agency Fully-Funded Rebate Program slated for Jan 4, 2010

3. Program Funding Update Net Total Amount Reserved By Date Budget ($4.6M) 5.0 $4,108,212 (as of 12/12/09) 4.50 4.0 3.50 $4,508,742 (as of 12/16/09) Dollars (millions) 3.0 2.50 2.0 Approximately $800,000of reservations from the first week of the program expired & were cancelled. 1.50 1.0 0.50 9/19 9/26 10/3 10/10 10/17 10/24 10/31 11/7 11/14 11/21 11/28 12/5 12/12 12/19 12/26 2009

4. Online "Out-of-fund" NotificationKey Points • It is possible that prior reservations by other customers may expire or be cancelled due to non-compliance with program guidelines. If this occurs, we will make this funding available to customers that were denied reservations. Customers will be contacted on a first come, first served basis until funding is again depleted. We cannot guarantee that funds will become available for your project. If funding does become available, all program terms and conditions will apply. Products may not be purchased before receiving a confirmed reservation. make this funding available first come, first served basis not

5. Online "Out-of-fund" NotificationKey Points (cont.) • Starting on January 4, 2010, some Southern California commercial, industrial, institutional, and multi-family water customers may continue to be eligible for rebate reservations from participating local agencies. Please check back to the website to see if your local water agency is offering rebate reservations. January 4, 2010

6. Exhibit H / Key Points • Fees • Incentives indicated on Exhibit H worksheet • Per-device administrative fees • Monthly management fee • Metropolitan to pay under-funded management fees, and will credit Member Agencies for any excess fees collected • No devices or technologies may be added to the qualifying list • Abide by Metropolitan’s terms and conditions

7. Exhibit H / Key Points (cont.) • Coordinate any planned or potential marketing in advance with Metropolitan • Member agency requests for program changes or additional vendor services must first be submitted to Metropolitan • Ability to utilize Honeywell will cease if and when Metropolitan’s Agreement expires or reaches its maximum amount payable • Performance of any pre- or post-installation device inspections will be Member Agency’s responsibility

8. Exhibit H / Administrative Fees

9. Backlog projection Projected Annual Water Savings = 4,500 acre-ft

10. FY 09/10 budget projection Projected Annual Water Savings = 12,000 acre-ft

11. END

12. Online "No Reservations" NotificationKey Points • Temporarily shown if Funding – including funds from expired or cancelled reservations – is fully depleted prior to January 4, 2010 • “Make Reservation” button removed • Message re: Member Agency fully-funded rebates starting January 4, 2010 will remain • Assume not all member agency funding will be depleted prior to end of Fiscal Year (June 30, 2010)

13. Online "Out-of-fund" Notification Online ”Out-of-fund” Notification Thank you for your interest in the Metropolitan Water District’s Save Water ­– Save A Buck Rebate Program. Unfortunately, funding for the program has been fully subscribed, so we cannot confirm your reservation. It is possible that prior reservations by other customers may expire or be cancelled due to non-compliance with program guidelines. If this occurs, we will make this funding available to customers that were denied reservations. Customers will be contacted on a first come, first served basis until funding is again depleted. We cannot guarantee that funds will become available for your project. If funding does become available, all program terms and conditions will apply. Products may not be purchased before receiving a confirmed reservation. Starting on January 4, 2010, some Southern California commercial, industrial, institutional, and multi-family water customers may continue to be eligible for rebate reservations from participating local agencies. Please check back to the website to see if your local water agency is offering rebate reservations. We appreciate your decision to help conserve our limited water resources. Thank you, Save Water, Save A Buck Rebate Processing Center