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7A <br /> Page 14 <br /> C�STS AND WATER RATES <br /> Do customers outside San Francisco subsidize the cost of water for customers <br /> inside San Francisco7 <br /> No. The costs associated with building, ope�ating and maintaining #he Regional Water <br /> System are shared be�nreen San Francisco Retail Customers and the Wholesale <br /> Customers based on their proportionate annual use of water from the system. <br /> What abaut the other wav? Do customers inside San Francisco subsidize the cost <br /> , <br /> of water for customers outside San Francisco? <br /> No. <br /> Will the new a�reement make the,cost of buvin� water from San Francisco �to up? <br /> No. Whoiesale water ra#es will not go up because of the Aareement. The wholesaie <br /> cost of wa#er is projected to increase in order to pay for the seismic upgrades to the <br /> regional wa#er system. Those cost increases would occur even if#he existing agreemenf <br /> remained in effect. <br /> How much will residentiaf water b�lls outside San Francisca qo up because San <br /> _...�.... <br /> Francisco is rebuildina the Reqional Water S�stem? <br /> , , �.,., <br /> It depends on where you live and whether your local water agency is undertaking capitaf <br /> improvemen#s or other costs. For a typical household outside San Francisco, the cost of <br /> rebuilding the Regional Water Sys#em will increase the monthly residential water bili by <br /> about$2.50 per month befinreen naw and 2�15. <br /> When is San Francisco qainp to complete rebuilding the Reqionai Water Svstem? <br /> San Francisco estimates it will complete the Water System Improvement Program by <br /> the end of 2015. <br /> Vllho monitors costs and ensures San Francisco honors the provisions of�he <br /> A_qreement? <br /> SAWSCA will continue to adminis#er the Agreement on behalf of the water agencies <br /> outside San Frar�cisco and their retail customers. <br /> Page 4 of 4 May 12,2009 <br />