1. Drought Challenges Jim Lochhead, CEO/Manager November 7, 2013

2. Denver Water overview Serve 1.3 million people or 25% of Colorado population Operate in 20 municipalities Total watershed area: 4,000 square miles 2.5 million acres Supply reliant on surface water from snowpack

3. Dealing with 2013 drought Drought planning began in 2012 Incremental, proactive process anticipating multi-year drought

4. Drought conditions worsen 2013 Drought Response Team Protect the health, safety and welfare of our customers Minimize economic disruptions Preserve landscapes

5. 2013 drought response The drought team implemented our drought response plan: Supply management and augmentation Demand management Understanding financial impacts Maintaining water quality Communications and Marketing Other local agencies and utilities watched Denver Water to gauge their drought response Previous Conservation Message 2013 Drought Message

6. Drought recovery Dillon Reservoir 5-22-13Dillon Reservoir 6-17-13

7. Volatility in our water supply Source: DW internal data Where we were headed… Where we ended up

9. Questions?