1 EASTERN MUNICIPAL WATER DISTRICT Implementing the MWD Water Supply Allocation Plan for Sub Agencies Elizabeth Lovsted, PE Sr. Civil Engineer September 14, 2015

2 Metropolitan Water Supply Allocation Metropolitan Board has implemented Level 3 of its Water Supply Allocation Plan, effective July 1, 2015 o Resulting cuts of ~15% in MWD water o Penalties for going over allocation (above $923 tier 1 rate) % = $1,480/AF +115% = $2,960/AF Due to credits for demand hardening and mandatory conservation measures, EMWD should not experience any financial penalties under the WSAP Level 3

3 Sub Agency Allocation Implementation Administrative Code: WHOLESALE SUPPLY ALLOCATION AND PENALTIES During mandatory water shortage stages, wholesale customers will be required to reduce their retail water demand equivalent to EMWD’s retail water demand reduction. If MWD has limited supply allocations to EMWD and other member agencies; supply to wholesale customers may be allocated using a formula and methodology based on the MWD Water Supply Allocation Plan. Potential penalties for not reducing demand could be up to 4 times the MWD Tier 2 rate. Proposed Allocation Implementation Principals: o MWD’s WSAP formula will be used to determine individual allocations o Penalties assessed proportionately only if EMWD is assessed penalties

4 MWD Allocation Formula Needs-based approach Takes into account: o The impact on retail customers and the economy o Population and growth o Changes and/or loss of local supply o Reclamation and recycling o Conservation o Investment in local resources

5 Estimated Allocation Agency Estimated EMWD Allocation (AF) 2014/2015 Actual Supply from EMWD (AF) Rancho California Water District27,70021,130 City of Perris1,6571,734 Lake Hemet MWD4,1842,459 City of Hemet00 Nuevo Water Company City of San Jacinto 00

6 Sub Agency Allocation Agencies able to meet demands with local supply have no allocation Actual allocation will depend on actual local supply use Sub-agency State reduction requirements far exceed reduction needed for allocation o Rancho California Water District - 36% o City of Perris - 24% o Lake Hemet MWD - 28% o City of Hemet - 32% o City of San Jacinto - 32% Sub-agencies has already reduced demand Financial penalties not anticipated for EMWD

7 Recommendation Approve the Water Supply Allocation Plan Implementation Principals for sub-agencies: 1.MWD’s WSAP formula will be used to determine individual allocations for each sub-agency; and 2.Penalties will be assessed to sub-agencies proportionately only if EMWD is assessed penalties

8 Contact Information EASTERN MUNICIPAL WATER DISTRICT Elizabeth Lovsted, PE Senior Civil Engineer ext