CALIFORNIA AMERICAN WATER NOTICE OF PUBLIC PARTICIPATION HEARINGS APPLICATION TO CONSTRUCT AND OPERATE THE MONTEREY PENINSULA WATER

SUPPLY PROJECT AND TO RECOVER ALL PRESENT AND FUTURE COSTS IN RATES APPLICATION NO. 12-04-019
The California Public Utilities Commission (CPUC) would like to hear from you! Two Public Participation Hearings (PPHs) have been scheduled to allow customers of California American Water (CalAm Water) to provide their comment and opinions on all aspects of this matter to the assigned CPUC Administrative Law Judge. The dates, times, and locations of the PPHs are noted below:

Wednesday, January 9, 2013 at 2:00 p.m. and 7:00 p.m. Monterey City Hall Council Chambers 580 Pacific Street, Monterey, CA
The location of the hearings is wheelchair accessible. If you need special accommodations such as interpretive service or listening devices, please contact the CPUCs Public Advisors Office (PAO) at the phone number noted at the end of this bill insert. In order to allow time for planning, please call 3 5 days in advance of the scheduled PPH. INFORMATION ABOUT APPLICATION 12-04-019 On April 23, 2012, CalAm Water filed Application 12-04-019 (A.12-04-019) with the CPUC requesting authority to construct and operate the Monterey Peninsula Water Supply Project (MPWSP) and to cover costs. The company is also requesting approval to purchase water from the Monterey Regional Water Pollution Control Agencys (MRWPCA) and the Monterey Peninsula Water Management Districts (MPWMD) Groundwater Replenishment Project (GWR) if that project has reached certain milestones when Cal Am is ready to construct the MPWSP desalination plant. CalAm is seeking to complete MPWSP in time to meet the State Water Resources Control Boards Cease and Desist Order mandating that all production from the Carmel River, the communitys current major water source, over the legal limitations cease by the end of 2016.

Average Residential Monthly Bill

Average Usage 7 ccf Present 2012 Bill 2013 2014 2015 2016 2017 Current Bill, with surcharges, without MPWSP $51.68 $51.68 $51.68 $51.68 $51.68 $51.68 $59.24 $58.45 $60.60 $58.83 $49.60 Projected bill over next five years Projected bill increases over next 5 years with MPWSP $57.50 $78.14 $90.79 $94.85 $93.29 $92.36 $18.90 $32.34 $34.25 $34.46 $42.75 31.90% 55.33% 56.52% 58.58% 86.18% $ Increase due to MPWSP % Increase due to MPWSP

Revenue Requirement Increase

Customer Class Residential Commercial Industrial Public Authority Private Fire Service Fire Hydrants Other Total Current Revenue $38,226,930 $12,921,018 $329,315 $4,495,814 $595,402 $114,470 $1,113,086 $57,796,036 Proposed Revenue $67,820,416 $22,923,861 $584,256 $7,976,260 $1,056,335 $203,087 $1,974,785 $102,539,000 Increase ($) $29,593,486 $10,002,843 $254,940 $3,480,447 $460,932 $88,617 $861,699 $44,742,964 Increase ($) 77.42% 77.42% 77.42% 77.42% 77.42% 77.42% 77.42% 77.42%

FOR MORE INFORMATION If you wish more information regarding A.12-04-019 you may call Cal Am Water at 1-888-237-1333. You can request copies of the application and exhibits by writing to Cal Am Water, P. O. Box 951, Monterey, CA 93942. You may also visit Monterey Peninsula Water Supply Project website to view and obtain electronic access at: http://www.watersupplyproject.org. CPUC PROCESS Staff from the CPUCs PAO will be present at this hearing to assist you. If you are unable to attend one of the hearings, you have the opportunity to submit your comments or opinions by written correspondence or by email to the PAO at the address noted at the end of this notice. All comments received will be provided to the Commissioners and the assigned ALJ in this proceeding for review. These comments also become part of the formal public comment files for this proceeding. If you are interested in becoming a party to this proceeding, you may also contact the PAO for additional information and guidance. CPUC Public Advisors Office 505 Van Ness Avenue San Francisco, CA 94102 1-866-849-8390 Toll Free or 1-415-703-2074 TTY 1-866-836-7825 Toll Free or 1-415-703-5282