1. Colorado River System & California’s Drought: an Overview Arizona League of Cities and Towns – Water Panel August 20, 2015

2. Colorado River System Overview $1.5 trillion/yr economic activity (~12 th largest GDP) Serves US & Mexico 7 States in the US ~40 million people ~ 4 million irrigated acres ~ 10 million Mwhr/yr ~$5 billion/yr Ag Value ~ 14 MAF/yr runoff 10 major reservoirs (60 MAF) Environmental values

3. 2007 Guidelines Shortage Sharing Arizona and Nevada share Lower Basin shortages under the 2007 Guidelines Mexico voluntarily agreed in Minute 319 to accept reductions in its deliveries at the same elevations Lake Mead Elevation Arizona Reduction Nevada Reduction Mexico Reduction 1075’320,000 AF13,000 AF50,000 AF 1050’400,000 AF17,000 AF70,000 AF 1025’480,000 AF20,000 AF125,000 AF No additional reductions to California under ’07 Guidelines

5. MWD Water System Relies on imported supplies: Northern California Colorado River MWD is the Junior Priority Colorado River user in California

6. MWD’s Response to 2015 Northern California Drought Crisis Curtailment of supplies: 15% reduction in wholesale deliveries $1,480 - $2,960/af penalty for exceedance Dramatic investment in conservation $350 Million, mostly turf removal ($2/sqft) Purchase senior priority Colorado River Ag Rights 12,000 acres in Palo Verde Irrigation District, CA $240 Million