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ATTACHMENT D <br />PROCEDURE FOR PRO-RATA REDUCTION OF WHOLESALE CUSTOMERS' INDIVIDUAL <br />SUPPLY GUARANTEES <br />(SECTION 3.02). <br />The 23 wholesale customers listed on Attachment C have individual Supply Guarantees that <br />total approximately 161.9 MGD. <br />If the amount of water purchased from SFPUC by Hayward exceeds 22.1 MGD for three <br />consecutive fiscal years, the individual Supply Guarantees of each of those 23 wholesale customers <br />will be reduced as described below. <br />STEP ONE: <br />Obtain the average annual excess purchases during the three fiscal year period. For example, <br />assume Hayward uses 25.0 MGD, 24.2 MGD and 26.0 MGD in three consecutive years. The <br />average annual excess use for that period is 2.9 MGD; calculated as follows: <br />(25.0 MGD + 24.2 MGD + 26.0 MGD) + 161.9 MGD = 186.9 MGD <br />3 <br />186.9 MGD -184.0 MGD = 2.9 MGD <br />STEP TWO: <br />Allocate the excess purchases among the 23 Wholesale Customers in proportion to each <br />customer's Supply Guarantee as a percentage of the total Supply Guarantees (161.9 MGD as of FY <br />2009-10). <br />For example, assume that Wholesale Customer A's Supply Guarantee is 12.0 MGD. <br />Wholesale Customer A's percentage share of the total individual supply guarantees is 0.074, <br />calculated as follows: <br />'12.0 MGD <br />161.9 MGD = 0.074 <br />and its share of the excess use is 0.22 MGD, calculated as follows: <br />2.9 MGD x 0.074 = 0.22 MGD <br />i 866408.4