FILED

12-13-13 04:59 PM

EXHIBIT CAW - 32
Non-Revenue Water Factored into the Desalination Plant Size

NON-REVENUE WATER FACTORED INTOTHE DESALINATION PLANT SIZE Richard C. Svindland Vice President of Engineering, California American Water
Theamountofnonrevenuewater(NRW)accountedforinCaliforniaAmericanWaters(CAW) desalinationplantsizingisshownbelow,whichreflectsthedifferencebetweentheTable1andTable2 valuesthatwereprovidedinCAWsNovember19,2013compliancefiling.1
2007 1,591 2008 1,799 NRW (AFY) 2009 2010 1,303 1,172 2011 1,536 2012 602

Thesizingofthedesalinationplantwasbaseduponthehistoricalsystemproductionfiguresincludedin Table1,anddidnotexplicitlyfactorintheabovereferencedNRWfigures.Webelieveourplantsizing canaccommodate1,331AFYinNRW,whichisconsistentwiththeNRWvalueprojectedoverthenext17 yearsinCAWs2010UrbanWaterManagementPlanandisarealisticsustainablevaluetobeusedinthe sizingoftheplant. Insizingawatertreatmentplant,thedesiredgoalofreducingNRWshouldnotbeusedtosizethe facilitiesbutratherarealistic,fullyachievablevaluethatcanbemetoveralongsustainedperiod.While CAWhasworkeddiligentlytoreducetheNRWamount,maintainingcurrentlevelswouldbedependent onmultiplefactors,includingthatfutureCommissionswouldcontinuetoapprovethesamelevelof capitalmainandservicereplacements,othercapitalimprovementsdesignedtoreduceNRWand continuedapprovalofoperationalexpensesusedtofind,locateandrepairleaks.

NRWistypicallydeterminedbytakingthedifferencebetweenthetotalsystemproductionthatentersintothe watersystemthroughthevarioussources,andcustomerusage.Bothofthesetwowillfluctuatebasedonweather, conservation,systeminfrastructureinvestment,andotherfactors.Assuch,theNRWvalueusedinthesizingofa plantfacilityshouldreflectalongertermaveragetoensuresufficientplantcapacity,andshouldbedifferentthen thevalueusedforratemakingpurposes.

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