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6.G. - Page 125 of 238 <br />Operating Agreement and operated as Regional Water System assets for the allocation of <br />capital costs and operation and maintenance expenses under this Agreement <br />"Project Operating Agreement" refers to the "Agreement for Groundwater Storage and <br />Recovery from the Southern Portion of the Westside Groundwater Basin by and among the San <br />Francisco Public Utilities Commission, the City of Daly City, the City of San Bruno, and <br />California Water Service Company," dated as of December 16, 2014. <br />"Proportional Annual Use" means the shares of deliveries from the Regional Water System <br />used by City Retail Customers and by the Wholesale Customers in a fiscal year, expressed as a <br />percentage. The percentages of annual use are calculated each year as described in Section B <br />of Attachment J and are shown on lines 10 and 11 of Table 1 of that Attachment. <br />"Proportional Water Use" refers the general principle of allocating Regional Water System <br />costs based on the relative purchases of water by Retail and Wholesale Customers. <br />"Regional," when used with reference to Water Enterprise capital assets and operating <br />expenses, refers to assets and expenses that benefit Wholesale and Regional Customers. <br />"Regional Water System" means the water storage, transmission and treatment system <br />operated by the SFPUC in Tuolumne, Stanislaus, San Joaquin, Alameda, Santa Clara, San <br />Mateo and San Francisco counties, including projects constructed under the WSIP, but <br />excluding Direct Retail and Direct Wholesale assets. <br />"Retail Customers" means any customer that purchases water from San Francisco that is not <br />a Wholesale Customer, whether located inside or outside of San Francisco. <br />"Retail Service Area" means the areas where SFPUC sells water to Retail Customers. <br />"Retail Water" means water sold by the SFPUC to its Retail Customers within and outside San <br />Francisco. <br />"San Francisco" refers to the City and County of San Francisco. <br />"SFPUC" refers to the San Francisco Public Utilities Commission as an operating department <br />of San Francisco, the General Manager of which reports to the Commission. <br />15066183.1 <br />456 <br />