Background

2

San Diego County Water Authority Service Area

3

Conservation 10%

Canal Lining

16%

Local Surface Water

3%

Groundwater 2%

Recycled Water 4%

MWD 53%

IID Transfer 10%

Dry-Year Transfer

2%

Estimated Fiscal Year 2010Water Supply Portfolio

*Fiscal year 2010: July 1, 2009 – June 30, 2010

4

Sources of Imported Water from Metropolitan Water District(State Water Project and Colorado

River)

5

Where is Residential Water Used?Clothes Washer

9%

Toilet11%

Shower7%

Faucet6%

Other8%

Unidentified1%

Outdoor59%

AWWA Research Foundation 1999 Residential End Uses of Water Study

6

Commercial & Industrial

Public & Other

Residential Agriculture -

100,000

200,000

300,000

400,000

How Do We Use Water in the San Diego Region?

14% 16%

60%

10%

Acre-feet

*Based on the Water Authority’s 2009 Annual Report

7

Colorado River Entitlements(Million acre-feet)

8

San Diego Area Recycled Water Treatment Plants

Challenges

11

Population Growth Within San Diego County (Millions)

1980

1985

1990

1995

2000

2008

2020

2030

2040

2050

0

1

2

3

4

5

HistoricProjected

Source: SANDAG 2050 Regional Growth Forecast

12

Phoenix San Diego San Francisco Orlando0

10

20

30

40

50

60

Low Average Annual Rainfall (Inches)

San Diego rainfall at Lindbergh Field

13Source: DWR California Drought Update May 2010

Statewide DroughtsRunoff below average since 2007

14

Ongoing Dry-Year Conditions on the Colorado River

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Est. 2010

0

20

40

60

80

100

120

Unregulated Inflow to Lake Powell (% of average – water year)

15

La Niña Conditions Present

A= Above AverageB= Below AverageEC= Equal Chance

Source: National Weather Service Climate Prediction Center September 16, 2010

3-Month Precipitation Outlook October – December

2010

16

Climate ChangePotential Water Management Impacts

Source: San Diego Foundation, San Diego’s Changing Climate: A Regional Wake-Up Call (2008)

17

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Delta Smelt

Salmon

Longfin SmeltNo Restrictions

Regulatory Pumping Restrictions

Pumping Restrictions to Protect Fish Species Limit State Water Project Deliveries

18

1,058,046 AF1,320,200 AF

Reduced deliveries from State Water Project due to pumping restrictions

Critical Dry Average Wet

*Source: Metropolitan Water District; updated 7/28/2009

AF = Acre-feet One acre-foot = 325,900 gallons

30% lost(-459,954 AF)

30% lost(-565,800 AF)

Impacts of Regulatory Restrictions on Southern California’s Supplies

460,460 AF

23% lost(-137,540 AF)

19

Price of Water

Rate Structure

Public EducationTechnology Improvements

Water-use restrictions

Weather and Climate

Economy

Housing and Household Characteristics

Nonresidential Characteristics

Challenges to ConservationNumerous Factors Influence Water

Demands

What’s at stake

21

Potentially More Frequent and Severe Shortages Could Negatively Impact Economy

Current Level

22

Reliable Future

Regional Water Supply Diversification

24

Metropolitan Water DistrictImperial Irrigation District Transfer

All American & Coachella Canal LiningConservation

Seawater DesalinationLocal Surface WaterRecycled Water

Groundwater

2010 20201991

95%

53%

29%

22%

6%

Dry-Year Water Transfers

7%

6%

9%

10%11%

5%

10%

16%

2%

2%

3%

4%

10%

25

Current (Dry-Year)

2015 2020 2025 20300

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Increase Future Groundwater Yield (Acre-feet)

Based on Water Authority’s 2005 Updated Urban Water Management Plan

26

Increase Future Recycled Water Yield (Acre-feet)

Based on Water Authority’s 2005 Updated Urban Water Management Plan

Current 2015 2020 2025 20300

10,000

20,000

30,000

40,000

50,000

27

New Water Ethic