3. The Coronado and Village District Systems

The Coronado District serves approximately 20,200 customers, about one-third of whom reside in the City of San Diego (San Diego), and two-thirds of whom reside in the City of Imperial Beach (Imperial Beach), which is adjacent to San Diego.2 Virtually all of the water used by customers in the Coronado District is supplied by San Diego; under a contract dating back to 1912, Cal-Am has the right to purchase from that city all of the potable water needed by the Coronado District's customers. Cal-Am also has emergency agreements with three other water systems.3

Cal-Am is now negotiating a new agreement with San Diego, since the existing agreement (which was last amended in 1998) gives that city the option not to renew Cal-Am's franchise. Once the new agreement has been finalized and becomes effective, Cal-Am intends to pass the costs of the new agreement on to the Coronado District customers through an offset advice letter filing.

The Village District serves approximately 20,000 customers, 4 virtually all of whom reside in the western part of Thousand Oaks, particularly in an area known as Newbury Park. The Village District and the other two water systems that serve Thousand Oaks5 each obtain all of their water from Calleguas Municipal Water District (Calleguas), and then store it and distribute it in their own systems. Although Calleguas has been able to meet all of the demand for water in Thousand Oaks up to now, both Cal-Am and City recognize that this situation may change soon.

2 Of the 20,200 customers, about 18,200 are residential and 2,000 are commercial. 3 The emergency agreements are a 1983 contract with the Otay Water District, a 1983 contract with the Sweetwater Authority, and a 1979 contract with the U.S. Navy. (Ex. 1, Direct Testimony of David Stephenson, p. 4.) 4 Of the 20,000, about 19,000 are residential, 725 commercial, 175 public authority, and 175 industrial. 5 Thousand Oaks has about 120,000 residents and 42,000 water customers. A public water system owned by City serves approximately 16,000 customers in the central area, and about 7,000 customers in the eastern portion of Thousand Oaks are served by California Water Service Company (Cal-Water), a private water company. (Thousand Oaks Protest, p. 5.)

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