7. Relations with Customers²¹

A. General

(1) Consumers expect and should receive service that is consistently adequate, reliable, and safe. Utility industry developments over the past decade such as mergers, diversification, and changing economic conditions have encouraged utilities to cut costs, reduce staffs and outsource some utility operating functions, and such efforts to economize may have led to deterioration of service quality. A gradual decline in performance may not be detected for some time if regulators do not keep informed as to service quality through regular monitoring. By keeping informed, regulators are better able to recognize signs of deterioration and inadequacies so that they can take corrective action to avert major service quality problems that would otherwise be frustrating and disruptive to consumers.

(2) Standardized reporting requirements and regular reporting are necessary for regulators to be able to monitor service quality and changes in performance. Reports should address performance areas such as customer relations and billing (e.g., responsiveness of customer call centers, responsiveness to consumer complaints, timeliness of installations and repairs, and accuracy and frequency of billing and meter reading) and operating performance (e.g., frequency and duration of outages, and responsiveness to safety calls).

(3) Reporting requirements should be carefully designed to yield accurate data that is uniform and consistent. In addition to keeping informed about service quality, regulators should establish measurable performance standards that must be met for providers to achieve and maintain a minimum quality of service, to the extent that quality of service is measurable, so that expectations are clear and problems are minimized. Performance standards should be supported by appropriate enforcement provisions. Service quality data and information should be available to the public to encourage companies to achieve good performance results, and to assure that regulation is open and effective.

B. Reporting

(1) Reporting periods shall be calendar quarters, with quarterly reports submitted to the CPUC by the last day of the month following the end of each quarter.

(2) Performance results shall be aggregated monthly and quarterly, and shall be reported quarterly to the CPUC.

(3) Quarterly reports shall include both monthly and quarterly averages. Quarterly averages shall be derived from raw data, not by averaging monthly averages.

(4) Achievement of minimum standards for purposes of calculating service quality compensation shall be determined on the basis of a 12-month average. Service quality compensation shall be calculated annually in the month following the anniversary of the effective date of the Plan. A minimum performance standard shall be considered met if the 12-month average upon the anniversary of the effective date of the Plan was met or was better than the standard.

(5) Notwithstanding Paragraph (4), where quarterly performance is more than ten percent worse than any standard, or where performance does not meet any standard for two consecutive quarters, the Utility shall within 30 days of the end of the quarter in which this provision is triggered, submit a corrective action plan indicating how it will remedy the failed standard.

(6) Performance shall be evaluated and reported to one decimal place for all performance areas unless otherwise specified. Actual performance shall be rounded up when the relevant decimal place is 5 or more. The Utility shall retain all of its reports that support the results for each of the performance areas for a period of not less than 24 months after the results are reported. The Utility shall provide these reports upon request to the CPUC.

(7) The Utility shall review with the CPUC any change to the Utility's measurement protocol or to the internal reporting methods that are used to obtain the data measured prior to the Utility's implementation of such changes.

(8) The utility shall report missing data or other events that could reasonably affect the quality of the data at the time the Utility becomes aware of such events. Any data reported to the CPUC that reflects significantly altered measurement procedures or internal data acquisition methods that have not been agreed to between the Utility and the CPUC shall be subject to challenge and potential exclusion from results.

(9) The Utility may seek a waiver of any applicable performance standard from the CPUC. A waiver may be granted for demonstrated good cause, such as where the circumstances causing the failure were beyond the Utility's control, and the Utility can demonstrate that its level of preparedness and response was reasonable in light of the cause of the failure.

C. Telephone Performance Standards

All water and sewer service utilities with national call centers and adequate call handling equipment shall develop (a) a new quarterly report that provides California-specific statistics, by district, from the national call center and that breaks out type of calls and final disposition of all complaints.

Further, water and sewer service utilities with technical capability shall provide a new quarterly report on all complaints received at district and regional levels and their final disposition. These reports shall be filed on a quarterly basis with the Commission's Consumer Service and Information Division (CSID), and Division of Water and Audits. "Complaints" shall refer to those customer calls made to the utility's call center that were not resolved by the customer service representative in the first call, and required additional follow-up by the utility, and remain unresolved after 30 calendar days.

[Note: Proposed definition of complaint refers to complaints that continue to be unresolved after 30 days.]

All water and sewer service utilities shall develop telephone performance standards and reporting criteria as follows:

(1) Call answer performance measures

Call Answering Service Level: Percentage of customers not reaching a utility representative within 20 seconds during normal business hours.

[Note: CAEM (Center for Advancement of Energy Markets & Navigant Study ("Customer Service Quality Standards in the Utilities Industry", 12/03: http://www.caem.org/website/pdf/CSQ.pdf) cites the NARUC Staff Subcommittee Model Rules with a propose standard of 90/20 (90% answered in 20 seconds). Navigant indicates current utility industry practice is about 70/30, and that 80/30 is still better than median industry performance. Ideally, the performance standard would vary with customer type and reason for call.]

Performance shall be calculated as follows:

Number of calls not reaching a utility rep within 20 seconds

Number of attempts to reach a utility rep

Performance measure: <=___%

[According to TARP (Technical Assistance Research Program, a service quality assoc.) customer satisfaction with service calls does not decrease significantly until after 60 seconds on hold. This should generally apply to the utility industry, in which case the standard could be somewhat lower than proposed here (75/20).]

Source of data: The standard shall be measured by using data obtained from the Utility's automated call distribution system (ACD). The data will include all calls reaching the ACD during the normal business hours. For the first four reporting quarters this standard shall be excluded from the calculation of service quality compensation. Apparently this service quality standard does not reflect calls handled entirely by an automated system (with no need for connection to a human attendant).

(2) Abandon rate, normal business hours: Percentage of calls abandoned before reaching a Utility representative during normal business. NARUC's Model Rules propose Abandonment rate not higher than 5%. However, Navigant considers Abandon rate to be redundant and misleading. In some cases, such as during outage events, abandonment of calls by customers before receiving a live answer can be desirable.

Performance shall be calculated as follows:

Number of calls abandoned/Number of attempts to reach a utility rep

Performance measure: <=___%.

Source of data: The standard shall be measured by using data obtained from the Utility's ACD.

(3) Abandon rate, after normal business hours: Percentage of calls abandoned before reaching a utility representative after normal business hours.

Performance shall be calculated as follows:

Number of calls abandoned/Number of attempts to reach a utility rep

Performance measure: <=___%

Source of data: The standard shall be measured by using data obtained from the Utility's ACD.

(4) Blocked Calls to the Utility: Percentage of calls blocked (receive a busy signal). Performance shall be calculated as follows:

Number of overflow calls/Total number of calls

Performance measure: <=___%.

Source of data: A call is deemed to have been blocked when it is classified as an "overflow" call from the utility's telecommunications provider. The standard shall be measured by using data that is provided by the Utility's telecommunication provider.

[Should emergency calls be held to the same service standards, or should they have a higher standard? If so, how can they be separately accounted for so as to ensure they are meeting the higher standard?

Are the incremental benefits of each of these standards higher than the incremental costs required, and thereby economically justifiable?

Both Navigant and TARP assert that Response Effectiveness is best measured by 1) customer satisfaction with a call transaction, and 2) first call resolution. According to the editor of the Call Centres website in Australia ( http://callcentres.com.au/first_call_resolution.htm), the failure to resolve on the first call accounts for about 30% of all operational costs. Consequently, call centers have the incentive to resolve first calls to reduce expenses *and* to better serve their customers. But there is wide discrepancy on how to most accurately measure "first call resolution." See this link from the International Call Mgmt. Institute website: http://www.incoming.com/WebModules/QueueTips/Question.aspx?ID=51

D. Response to consumer and regulatory complaints:

(1) The Utility shall provide a substantive response to consumer complaints expressed directly to the utility within 10 business days of receipt by any method of contact for billing complaints and within 14 calendar days for non-billing complaints.

(2) The Utility shall provide a substantive response to consumer complaints from the CPUC within 10 calendar days.

(3) If the Utility needs additional time to respond fully to a complaint from a consumer or from the CPUC, the Utility shall within the initial response period request a specific additional time for response and shall provide a full resolution within the requested additional time.

E. Billing Performance Standards

(1) Percentage of bills not rendered monthly: Percentage of bills not rendered within seven days of the scheduled billing date. Performance shall be calculated as follows:

Number of bills not rendered within seven days of the scheduled billing date/Total number of bills scheduled to be rendered.

Exclusions: The measurement will exclude accounts that were activated within 10 days prior to the normal billing cycle; accounts that are scheduled to receive a final bill within 10 days after the normal billing cycle; off-system sales; utility use accounts.

Performance measure: <=___%

Source of data: This standard shall be measured by using data obtained from the Utility's Customer Information System. Results shall be reported to the second decimal place.

(2) Bills found inaccurate: Percentage of bills found inaccurate after being sent to customers, brought to utility's attention either as result of customer complaints and/or by the utility's own efforts. Performance shall be calculated as follows:

Number of bills rendered inaccurately for the month/Total number of bills rendered for the billing month

Exclusions: This standard does not include bills found to be inaccurate strictly as result of estimation, bills where the inaccuracy does not effect the calculation of the bill, or where the fault does not lie with the utility. Multiple bills for a customer that are caused by the same error shall be counted as one incident.

Performance measure: <=___%

Source of data: This standard shall be measured by using data obtained from the Utility's Customer Information System. Results shall be reported to the second decimal place.

(3) Payment posting complaints: Percentage of customers filing complaints ultimately classified as escalations to the utility or CPUC concerning the posting of their payments to their accounts. Performance shall be calculated as follows:

Number of customers complaining about payment posting/Total number of customers

Performance measure: <=___%

Source of data: This Standard shall be measured by using data obtained from the Utility's Complaint Tracking System, Customer Information System (CIS) and the CPUCs Consumer Affairs Tracking System. The complaint tracking system currently includes a complaint type for payment processing. Complaints regarding payment options will be excluded from this measurement. Standard shall be measured and reported to the fourth decimal place.

F. Meter Reading Performance Standards

(1) Percentage of actual meter readings per month: Percentage of meters not read each month in relation to the number that were scheduled to be read. Performance shall be calculated as follows:

Number of scheduled meters not read/Number of meter readings scheduled

Performance measure: <=___%

Source of data: Data shall be obtained from the Utility's Customer Information System.

Would we want to have a standard for AMR, or will this be handled elsewhere? Should there be a minimal and maximum standard for frequency of meter readings?

G. Work Completion Performance Standards

(1) Keeping Appointments: The utility will inform the customer whether the utility representative will be at the customer's premises within a four hour window. The utility must inform the customer more than 12 hours prior to the meeting if the meeting time must be changed.

Final Read and Final Bill: The utility is required to read the customer's meter on the day the customer specifies so long as five (5) days notice is given. The utility will provide a final bill within 14 days of the meter read.

Meter Installation: The utility will provide a meter box if necessary and meter a customer who requests a meter within 30 working days of the request.

Meter Exchange: If the utility needs to change out a meter it will leave written details of the date of the change, meter readings on the day and the serial numbers of the old and the new meter.

The utility must correct all problems that result from the flooding of sewers within 24 hours of being informed of the flooding event.

Percentage of customer requested work not completed on or before promised delivery date: The percentage of jobs resulting from customer requests for new service line installations, meter installations, meter turn-ons, meter read-over, disconnects and reconnects (collectively "customer orders") that are not completed on or before the promised completion date. For purpose of this measure, a new service is one requested for a premise where the proposed meter location is within 150 feet of an existing, water main. Performance shall be calculated as follows:

Number of customer orders not completed on or before promised delivery date/Total number of customer orders promised and completed in the reporting month

Exclusions: When an event outside of the utility's control occurs resulting in the work not being completed as promised, utility will renegotiate the promised delivery date with the customer. Renegotiated customer orders will be reported as completed on or before ____ based on the new renegotiated date not the original date.

Performance measure: <=___%

Source of data: For all customer orders excluding service line installation, data shall be obtained from the Utility's Customer Information System. When a customer calls for included work, a service request is created for the date promised to the customer. Reports are generated monthly of all meter orders closed during the prior month and are reviewed for the following exclusions: (1) delayed at the customer's request or because the customer was not ready for the work to be performed, (2) meter order request not the result of a customer request but rather an internal request for meter order work, (3) non-regulated business activities. For service line installations the data shall be obtained from the Utility's work order system. For each service line installation a "promise date" will be agreed to by the Utility and customer and recorded in the Utility's work order system.

(2) Average number of days after the missed delivery date: Average number of days after the missed delivery date in which utility was to complete work covered under 4a above. Performance shall be calculated as follows:

Total days of delay/Total number of delayed jobs in the reporting month

Exclusions: When an event outside of the Utility's control occurs resulting in the work not being completed as promised, the Utility will renegotiate the promised delivery date with the customer.

Performance standard: <= ___ days.

Source of data: For all work covered in 4a above except for service line installations, data shall be obtained from the Utility's Customer Information System. When a customer calls for included work, a service request is created for the date promised to the customer. Reports are generated monthly of all meter orders closed during the prior month and are reviewed for the following exclusions: (1) delayed at the customer's request or because the customer was not ready for the work to be performed, (2) meter order request not the result of a customer request but rather an internal request for meter order work, (3) non-regulated business activities.

For service line installations the data shall be obtained from the Utility's work order system. For each service line installation a "promise date" will be agreed to by the Utility and customer and recorded in the Utility's work order system.

H. Customer Satisfaction Measures

(1) Transactional customer satisfaction: Percentage of customers who rate the utility with a 4 or a 5 following customer-initiated contact with the utility (report, request, inquiry, customer requested work and complaint resolution).

Performance measure: >=___%

Exclusions: The performance standard shall be considered met if performance falls within the survey margin of error.

Source of data: Survey conducted by an independent, third-party contractor performing four quarterly surveys of customers who have contacted the utility with a report, request, inquiry, complaint or request for work in order to assess the level of satisfaction with the transaction. The Utility will allow the CPUC to review and have input into any changes it may propose to implement.

(2) Overall customer satisfaction: Percentage of customers rating the utility 5 or 6, or 7 on the aggregate of two customer satisfaction survey questions.

Performance measures: >=___%

Exclusions: The performance standard shall be considered met if performance falls within the survey margin of error.

Source of data: Survey conducted by an independent, third-party contractor performing an annual survey of a sample of the Utility's customers.

The Utility will allow the CPUC to review and have input into any changes it may propose to implement.

(3) Rate of complaints to CPUC Consumer Affairs: Percentage of customers who file complaints with the CPUC that are ultimately classified as escalations following investigation. Performance shall be calculated as follows:

Number of escalations/Total number of customers

Performance measure: <=___%

Source of data: Data shall be obtained from the quarterly reports provided by the CPUC to the utility from the CPUC Consumer Affairs Tracking System. Results shall be reported to the second decimal place.

I. Worker Safety Performance Measures:

(1) Lost Time Incident Rate: The number of lost time cases experienced by the Utility in a calendar year, multiplied by 200,000 and divided by the total hours worked by Utility employees.

Number of lost time cases x 200,000/Total hours worked by utility employees

Performance measure: <=___

Source of data: Lost time cases are the total number of incidents that cause an injury that results in the employee missing work as a result of an injury sustained while performing work for the utility. Lost time cases are recorded in column H on the OSHA Form 300A that is maintained by the Utility's Human Resources Department.

(2) Lost Time Severity Rate: The number of employee lost days experienced by the Utility for a calendar year, multiplied by 200,000 and divided by the total hours worked by Utility employees.

Number of employee lost days x 200,000/Total hours worked by the Utility employees

Performance measure: <=___ days

Source of data: Employee lost days are the total number of calendar days missed by employees as a result of an injury sustained while performing work for the utility. Employees lost days are recorded in column K on the OSHA Form 300A that is maintained by the Utility's Human Resources Department.

J. Reliability Performance Standards

(1) Meter Accuracy: This standard measures the percentage of meters not accurate within a threshold of 98-102%. No more than 5% of the utility meters shall fall outside an accuracy threshold of 98-102% as measured by meter in-test data describing open-rate meter test performance, except that, as appropriate on larger meters, performance shall be measured by check-rate meter test. The utility shall report meter accuracy percentages broken down by the following ranges: percent of meters accurate to <98%, >=98% and <100%; >=100% and <=102%; and >102%. Deviation from the baseline shall be measured as the percent of tested meters that fail to fall within the accuracy threshold.

Performance measure: <=___%

Source of data: Meter test records as maintained and compiled by the Utility's Operations Department.

(2) Underground Damage Prevention Statistics: The Utility shall comply with all California regulations on underground damage prevention law. Non-compliance shall be measured as follows:

(a) Non-compliance when the utility is the excavating party will be measured as the utility's regulatory violations/Total number of outgoing requests to Dig Safe

Performance Measure: ___%

Source of data: Data shall be obtained from the Utility's Operation's Department.

(b) Non-Compliance when the utility is the marking party will be measured as:

Number of times the utility failed to mark or mismarked its pipelines/Total Number of incoming notifications from Dig Safe

Performance Measure: ___%

Source of data: Data shall be obtained from the Dig Safe System.

(c) The utility shall file all reports related to compliance with underground facility damage prevention regulations.

Performance Measure: 0 occurrences of the CPUC finding a violation of this requirement

Source of data: Data shall be obtained from CPUC violation notices.

K. Service Guarantees

(1) The Utility shall offer the following service guarantees:

(a) Bills not rendered: The Utility shall provide a credit of $10 to any retail customer whose bill is not rendered within 7 days of the customer's scheduled billing cycle. In the event of systemic errors that affect in excess of 500 customers in the same manner and the same incident (such as programming errors), the amount of service guarantees shall be capped at $5000 per incident. The $5000 shall be divided equally among all affected customers.

(b) Bills found inaccurate: The utility shall provide a $10 credit if a retail customer's bill is determined to be inaccurate (see above III.2.B) as result of a customer complaint or found to be inaccurate by the utility after the bill has been sent to the customer. In the event of systemic errors that affect in excess of 500 customers in the same manner and the same incident (such as programming errors), the amount of service guarantees shall be capped at $5000 per incident. The $5000 shall be divided equally among all affected customers. Bills that are inaccurate in the customer's favor where the Utility chooses not to collect are excluded.

(c) Service initiation: The Utility shall provide a credit of $15 to any customer whose service is not initiated within three business days of the requested date or five days if the initiation requires access to the inside of the customer's premises. Service initiation means the meter is turned on and the account for the meter is in the new customer's name.

(d) Final meter reads: The Utility shall provide a credit of $10 to any customer whose final meter reading does not occur within three business days of the requested date.

(2) All credits owed to customers as a result of the Utility failure to meet the service guarantees described above will automatically be credited without the customer having to notify the Utility. In the event a customer who is due a credit no longer has an account with the Utility at the time the utility determines a credit is due, the Utility shall mail a check for the credit amount to the customer's last known address. All unclaimed funds will follow legal requirements regarding abandoned property.

L. Asset management requirements

(1) Due to the water industry's long life infrastructure and high fixed costs, the effective management of the planning, construction, maintenance and operation of assets is a critical component in delivering good customer service and ensuring the ongoing viability of water services.

(2) Effective asset management helps achieve or maintain service and other business performance requirements, manage risks and improve efficiency. To support the asset management system requirements all utilities shall have regular independent third party reviews conducted of their asset management system to ensure the proper maintenance of their assets.

M. Customer Service Conditions

Each utility shall make available to its customers a charter detailing services offered, standards, customer rights, information on obtaining emergency assistance, and how they can make suggestions or complaints.

Appendix A Non Potable Water Systems

Sections of Rules Governing Water Service Including Minimum Standards for Design and Construction which shall be applicable to utility water systems supplying water not intended or claimed to be potable from ditches, canals or other conduits.

Section I - General

All paragraphs of the section, except (2), (3), and (4) of paragraph 10a.

Section II - Standards of Service

Paragraphs 2 and 4 of this section, except that paragraph 2c shall not apply to scheduled interruptions as provided in applicable tariffs.

Section III - Standards of Design

None.

Section IV - Standards of Construction

Section V - Extension of Service

Paragraph 2a(1) of this section

Section VI - Measurement of Service

All paragraphs of the section, except when sales are measured by other than displacement meters as provided in applicable tariff schedules only paragraphs 1, 3a and e, 5, 6a, 7a, e and f and 8 shall apply.

Section VII - Rates and Billing

All paragraphs of the section, except when sales are measured by other than displacement meters as provided in applicable tariff schedules only paragraphs 1, 2 and 3c and d shall apply.

Section VIII - Fire Protection Standards

None

APPENDIX B deleted

CHART 1 deleted

Appendix B Records Retentions Schedules

REGULATIONS TO GOVERN THE PRESERVATION OF RECORDS OF WATER UTILITIES, CLASSES A, B & C

1. General Instructions. The regulations in this Appendix apply to all records prepared by or on behalf of water or sewer system utilities, Classes A, B and C.

a. The regulations in this part shall not be construed as exclusive compliance with any other lawful requirement for the preservation of records for periods longer than those prescribed herein.

b. Each water utility subject to the regulations herein shall designate one or more persons and positions with official responsibility to supervise the utility's program for preservation and the authorized destruction of its records.

c. The water utility shall provide reasonable protection for records subject to the regulations herein. Records shall be arranged in such a manner as to be easily identifiable and accessible to representatives of this Commission.

d. All methods of storage including but not limited to compact disk, hard drive or floppy disk, microfilm and tape records shall contain labels including the title, date prepared, name of official responsible for validating the data, date of completion, and certification that the records are true and accurate reproductions of the original records.

e. When records are destroyed or lost before the expiration of the prescribed period of retention, a certified statement listing the records destroyed and prescribing the circumstances of accidental or other premature destruction or loss shall be filed with the Commission within sixty (60) days from the date of discovery of such destruction.

g. The water utilities to which the regulations herein apply shall assure the availability of records of services performed by associated and affiliated companies for the periods indicated herein, as are necessary, to support the cost of services rendered to it by an associated or affiliated company.

SCHEDULE OF RECORDS AND PERIODS OF RETENTION

Appendix C Calculation of System Demands

To determine the estimated MDD and PHD for the water system as a whole (total source capacity and number of service connections) and for each pressure zone within the system (total water supply available from the water sources and interzonal transfers directly supplying the zone and number of service connections within the zone), the following steps should be used. Use the highest frequency of water usage data that is available.

(1) Daily water usage data. Identify the day with the highest usage during the past five years to obtain MDD and multiply by a peaking factor of at least 1.5 to obtain the PHD.

(2) Monthly water usage data:

(A) Identify the month with the highest water usage ("maximum month") during at least the most recent five years of operation. If the system has been operating for less than five years, the entire period of operation.

(B) To calculate the average daily usage during the maximum month, divide the total water usage during the maximum month by the number of days in that month.

(C) To calculate the MDD, multiply the average daily usage by a peaking factor that is a minimum of 1.5.

(D) To calculate the PHD, multiply MDD by a peaking factor that is a minimum of 1.5.

(3) Annual water usage data:

(A) Identify the month with the highest water usage ("maximum month") during at least the most recent five years of operation. If the system has been operating for less than five years, the entire period of operation.

(B) To calculate the average daily use, divide the total annual water usage for the year with the highest use by 365 days.

(C) To calculate the MDD, multiply the average daily usage by a peaking factor of 2.25.

(D) To calculate the PHD, multiply MDD by a peaking factor that is a minimum of 1.5.

(4) If no water usage data is available.

(A) Utilize records from a system that is similar in size, elevation, demography, residential property size, and metering to determine the average water usage per service connection.

(B) From the average water usage per service connection, calculate the average daily demand and follow the steps in paragraph (3) to calculate the MDD and PHD.

Appendix D Calculation of System Supply

A. A system shall determine the total capacity of its groundwater sources by summing the capacity of its individual sources; if capacity varies seasonally, it shall be determined at the time of MDD:

(1) The capacity of a well drilled into alluvial soils shall be determined from existing pumping data or from a pump test conducted as follows:

(A) Pump the well continually using a constant rate of water discharge;

(B) Take measurements of the water level drawdown at least one hour apart;

(C) Plot the drawdown measurements against the logarithm of time elapsed since the beginning of the pump test; and

(D Pump until at least four consecutive drawdown measurements and the elapsed time yield a straight line in the plot developed pursuant to subparagraph (C)

(2) The capacity of a well drilled in hard rock shall be determined from existing pumping and drawdown data covering a period of at least ten years or one of the following pump tests initiated during August, September or October:

(A) Pump the well continuously for a minimum of 72 hours;

1. Take measurements of water drawdown and pumping rate every four hours;

2. Pump until the water drawdown level is constant for at least four measurements;

3. To calculate the assigned well capacity, the pumping rate at the fourth of the measurements in subsubparagrph 2. shall be multiplied by 25%.

(B) Pump the well continuously for a minimum of 10 days;

1. Take measurements of water drawdown and pumping rate every four hours during the first four days, daily for the next four days, and every four hours for the remaining days;

2 Pump until the water drawdown level is constant for at least four measurements;

3. To calculate the assigned well capacity, the pumping rate at the fourth measurement collected per subsubparagraph 2. shall be multiplied by 50%.

(3 The assigned well capacity based on a pump test may be revised based on actual pumping data collected for five years.

B. The source capacity of a surface water supply or a spring shall be the lowest daily volume of water flow based on five years of data, if available, or contracts for water rights.

C. The source capacity of a purchased water connection shall be the volume available during MDD.

Appendix E TMF Criteria Checklists

On January 1, 1998, State regulations became effective requiring that all new public water systems and systems changing ownership demonstrate adequate Technical, Managerial and Financial (TMF) capacity in order to obtain a permit to deliver pure, wholesome, and potable drinking water.

Voluntary TMF Capacity Development Program. Public water systems will choose to participate in achieving the TMF capacity requirements on a voluntary basis because of benefits of the program. Public water systems that volunteer to improve their TMF capacity will more consistently comply with regulatory requirements.

TMF Capacity Requirements as Elements of Enforcement Actions. The DEPARTMENT has required some public water systems to improve TMF capacity as a provision of compliance actions. These compliance actions are undertaken as a result of actual or threatened violations of State regulatory requirements by a public water system.

The Federal Safe Drinking Water Act (SDWA) Amendments of 1996 authorize a Drinking Water State Revolving Fund (SRF) loan program to help public water systems finance their infrastructure needs. Through this authorization, funds are available to assist public water systems in acquiring and maintaining its TMF capacity.

Public water systems that receive funding under the SRF program are required to demonstrate or develop adequate TMF capacity.

New Systems and Change of Ownership

According to §116540 of the California Health and Safety Code, "No public water system that was not in existence on January 1, 1998, shall be granted a permit unless the system demonstrates to the [Department] that the water supplier possesses adequate financial, managerial, and technical capability to assure the delivery of pure, wholesome and potable drinking water. This section shall also apply to any change of ownership of a public water system that occurs after January 1, 1998."

Below is the TMF Capacity Criteria Applicability Chart for new community water systems:

Mandatory: Compliance is required at the time the permit is issued.

Technical: Compliance is required within a specified time frame.

Technical Capacity
System Description	Mandatory
Source Capacity Assessment	Mandatory
Consolidation Feasibility	Mandatory
Technical Evaluation	Necessary
Operation Plans	Necessary
Certified/Qualified Operators	Necessary
Training	Necessary
Managerial Capacity
Ownership	Mandatory
Organization	Mandatory
Water Rights	Mandatory
Planning	Mandatory
Emergency/Disaster Response Plans	Necessary
Financial Capacity
Budget Projection	Mandatory
Reserves	Necessary
Capital Improvement Plan	Mandatory
Budget Control	Necessary

Below is the TMF Capacity Criteria Applicability Chart for change of ownership

Technical Capacity
System Description	Necessary
Source Capacity Assessment	Necessary
Consolidation Feasibility	Necessary
Technical Evaluation	Necessary
Operation Plans	Necessary
Certified/Qualified Operators	Necessary
Training	Necessary
Managerial Capacity
Ownership	Mandatory
Organization	Mandatory
Water Rights	Mandatory
Planning	Mandatory
Emergency/Disaster Response Plans	Necessary
Financial Capacity
Budget Projection	Mandatory
Capital Improvement Plan	Mandatory
Budget Control	Necessary

Below is the TMF Capacity Criteria Applicability Chart for systems applying for funds through the Safe Drinking Water State Revolving Fund.

Technical Capacity
System Description	Mandatory
Source Capacity Assessment	Necessary
Consolidation Feasibility	Mandatory
Technical Evaluation	Necessary
Operation Plans	Necessary
Certified/Qualified Operators	Mandatory
Training	Necessary
Managerial Capacity
Ownership	Mandatory
Organization	Mandatory
Water Rights	Mandatory
Emergency/Disaster Response Plans	Necessary
Financial Capacity
Budget Projection	Mandatory
Capital Improvement Plan	Necessary
Budget Control	Necessary

Appendix F Report Card Billing

This Appendix explains the minimum amount of information that must be included with the bill to the customer.

Meter Readings: Previous and Present

Service Charge

Commodity Charge

Past due after date

Quantity per billing unit (Hundred Cubic Feet, thousand Gallons etc)

Billing period Usage Comparison

Amount Due

¹ Based upon Vermont Gas Systems Successor Service Quality and Reliability Performance, Monitoring & Reporting Plan, May 5, 2004, at www.publicservice.vermont.gov/natural-gas/VGS-successor%202nd%20amended.pdf.)