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<br />ATTACHMENT H <br /> <br />WATER SHORTAGE ALLOCATION PLAN <br /> <br />This Interim Water Shortage Allocation Plan ("Plan") describes the method for allocating water <br />between the San Francisco Public Utilities Commission ("SFPUC") and the Wholesale <br />Customers collectively during shortages caused by drought. The Plan implements a method for <br />allocating water among the individual Wholesale Customers which has been adopted by the <br />Wholesale Customers. The Plan includes provisions for transfers, banking, and excess use <br />charges. The Plan applies only when the SFPUC determines that a system-wide water shortage <br />due to drought exists, and all references to "shortages" and "water shortages" are to be so <br />understood. This Plan was adopted pursuant to Section 7.03(a) of the 1984 Settlement <br />Agreement and Master Water Sales Contract and has been updated to correspond to the <br />terminology used in the June 2009 Water Supply Agreement between the City and County of <br />San Francisco and Wholesale Customers in Alameda Colinty, San Mateo County and Santa Clara <br />County ("Agreement"). <br /> <br />SECTION 1. <br /> <br />SHORTAGE CONDITIONS <br /> <br />1.1. Proiected Available SFPUC Water Supply. The SFPUC shall make an annual <br />determination as to whether or not a shortage condition exists. The determination of projected <br />available water supply shall consider, among other things, stored water, projected runoff, water <br />acquired by the SFPUC from non-SFPUC sourc.es, inactive storage, reservoir losses, allowance' <br />for carryover storage, and water bank balances, if any, described in Section 3. <br /> <br />1.2 Proiected SFPUC Purchases. The SFPUC will utilize purchase data, including volumes of <br />Water purchased by the Wholesale Customers and by Retail Customers (as those terms are used <br />in the Agreement) in the year immediately prior to the drought, along with other available <br />relevant information, as a basis for determining projected system-wide water purchases from the <br />SFPUC for the upcoming year. . <br /> <br />1.3. Shortage Conditions. The SFPUC will compare the available water supply (Section 1.1) <br />with projected system-wide water purchases (Section 1.2). A shortage condition exists if the <br />SFPUC determines that the projected available water supply is less than projected system-wide <br />water purchases in the upcoming Supply Year (defined as the period from July 1 through June <br />30). When a shortage condition exists, SFPUC will determine whether voluntary or mandatory <br />actions will be required to reduce purchases of SFPUC water to required levels. <br /> <br />1.3.1 Voluntary Response. If the SFPUC determines that voluntary actions will be sufficiept to <br />accomplish the necessary reduction in water use throughout its service area, the SFPUC and the <br />Wholesale Customers will make good faith efforts to reduce their water purchases to stay within <br />their annual shortage allocations and associated monthly water use budgets. The SFPUC will not <br />impose excess use charges during periods of voluntary rationing, but may suspend the <br />prospective accumulation of water bank credits, or impose a ceiling on further accumulation of <br />bank credits, consistent with Section 3.2.1 of this Plan. <br /> <br />1857367.3 <br />