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Page 13 of 19 <br />21418818.2 <br />Stanford Population = (Faculty/Staff Housing Residences x 2.57) + ("Total Students" from <br />Population Report) <br />Percent Indoor Demand <br />For each Base Period year, percent indoor demand is calculated by dividing each Wholesale <br />Customer’s lowest month of potable production by the Wholesale Customer’s average monthly <br />potable production. The two resulting percentages are averaged together. An example equation <br />is provided below, where Y1 and Y2 represent the two Base Period years. <br />% πΌπΌπ‘“π‘“π‘ƒπ‘ƒπ‘œπ‘œπ‘œπ‘œπΆπΆ π‘†π‘†π‘œπ‘œπ‘œπ‘œ= πΏπΏπ‘œπ‘œπ‘™π‘™π‘œπ‘œπ‘œπ‘œπΆπΆ π‘€π‘€π‘œπ‘œπ‘“π‘“πΆπΆβ„Ž π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ1π΄π΄π‘‚π‘‚π‘œπ‘œπΆπΆπ‘œπ‘œπ΄π΄π‘œπ‘œ π‘€π‘€π‘œπ‘œπ‘“π‘“πΆπΆβ„Žπ‘œπ‘œπ‘™π‘™ π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ1 +πΏπΏπ‘œπ‘œπ‘™π‘™π‘œπ‘œπ‘œπ‘œπΆπΆ π‘€π‘€π‘œπ‘œπ‘“π‘“πΆπΆβ„Ž π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ2π΄π΄π‘‚π‘‚π‘œπ‘œπΆπΆπ‘œπ‘œπ΄π΄π‘œπ‘œ π‘€π‘€π‘œπ‘œπ‘“π‘“πΆπΆβ„Žπ‘œπ‘œπ‘™π‘™ π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ22 <br />Percent Seasonal Demand <br />Percent seasonal demand is calculated as the inverse of percent indoor demand. π‘ƒπ‘ƒπ‘œπ‘œπΆπΆπ‘Žπ‘Žπ‘œπ‘œπ‘“π‘“πΆπΆ π‘†π‘†π‘œπ‘œπ‘œπ‘œπ‘œπ‘œπ‘œπ‘œπ‘“π‘“π‘œπ‘œπ‘œπ‘œ π·π·π‘œπ‘œπΆπΆπ‘œπ‘œπ‘“π‘“π‘ƒπ‘ƒ= 1 βˆ’% πΌπΌπ‘“π‘“π‘ƒπ‘ƒπ‘œπ‘œπ‘œπ‘œπΆπΆ π·π·π‘œπ‘œπΆπΆπ‘œπ‘œπ‘“π‘“π‘ƒπ‘ƒ <br />Percent Non-Residential Demand <br />For each Base Period year, percent non-residential demand is calculated by first dividing each <br />Wholesale Customer’s potable water consumption from all residential customer categories by <br />the Wholesale Customer’s total annual potable production. The resulting percentage is <br />subtracted from one to calculate the inverse and thus captures all non-residential demands <br />including non-revenue water and dedicated irrigation meters 2. The two resulting percentages <br />from the two Base Period years are averaged together. An example equation is provided below, <br />where Y1 and Y2 represent the two Base Period years. <br />% 𝑁𝑁𝑅𝑅 π‘†π‘†π‘œπ‘œπ‘œπ‘œ= (1 βˆ’π‘…π‘…π‘œπ‘œπ‘œπ‘œπ‘“π‘“π‘ƒπ‘ƒπ‘œπ‘œπ‘“π‘“πΆπΆπ‘“π‘“π‘œπ‘œπ‘œπ‘œ π‘†π‘†π‘œπ‘œπ‘œπ‘œ,π‘Œπ‘Œ1π‘ƒπ‘ƒπ‘œπ‘œπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπ‘œπ‘œπ‘œπ‘œ π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ1 ) + (1 βˆ’π‘…π‘…π‘œπ‘œπ‘œπ‘œπ‘“π‘“π‘ƒπ‘ƒπ‘œπ‘œπ‘“π‘“πΆπΆπ‘“π‘“π‘œπ‘œπ‘œπ‘œ π‘†π‘†π‘œπ‘œπ‘œπ‘œ,π‘Œπ‘Œ2π‘ƒπ‘ƒπ‘œπ‘œπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπ‘œπ‘œπ‘œπ‘œ π‘ƒπ‘ƒπΆπΆπ‘œπ‘œπ‘ƒπ‘ƒπΆπΆπ‘Žπ‘ŽπΆπΆπ‘“π‘“π‘œπ‘œπ‘“π‘“,π‘Œπ‘Œ2 )2 <br />Individual Supply Guarantee (ISG) <br />Use of ISG in the Tier 2 Plan <br />Each Wholesale Customer’s ISG is used in the Tier 2 Plan calculations with proxies for <br />Hayward, San Jose and Santa Clara, in order to provide inputs for the Tier 2 Allocation Formula. <br />See WSA, Attachment C for a current list of ISG values. <br />Hayward’s de facto ISG (22.1 MGD) is used in place of permanent ISG for the purposes of the <br />Tier 2 Plan calculations. This figure is used in WSA, Attachment D, to determine whether <br />Hayward’s increased use requires pro-rata reduction of remaining Wholesale Customers’ ISG. <br />2 Prior to FY 22-23, all consumption recorded under the dedicated irrigation sector in the Water <br />Conservation Database is assumed to be non-residential. Starting in FY 22-23, Wholesale Customers <br />were given the option to separate out residential vs. non-residential dedicated irrigation consumption. <br />ATTY/RESO.0092/CC RESO APPROVING TIER 2 DROUGHT RESPONSE IMPLEMENTATION PLAN (WATER SUPPLY AGREEMENT) - EXHIBIT A <br />REV: 08-18-25 MI <br /> <br />Page 15 of 21