Agenda Agenda Introduction Review of Order Analysis and Allocation - PDF document

Access to Excess CAP Access to Excess CAP Water, 2010 & beyond Water, 2010 & beyond Customer/Stakeholder Workshop Customer/Stakeholder Workshop April 29, 2009 April 29, 2009 Agenda Agenda � Introduction � Review of Order Analysis and Allocation Proposals � Elements Under Consideration for a Revised S taff Proposal � Discussion Customer/Stakeholder Workshop, April 29, 2009 1

A 2 E Status (as Ken sees it) A 2 E Status (as Ken sees it) � Emerging consensus around multiple pool approach � S upport for AWBA � General acknowledgement of CAGRD needs � Desire for self-determination within a Municipal Pool � S peculation concerns remain prominent � Unresolved allocation complexity within Industrial/ Other � Desire for simplicity S imple to explain versus(? ) simple to implement � � Additional issue from 4/ 22 workshop There are geographic and regulatory impediments to fuller utilization � of GS F capacity that are beyond scope of A 2 E Customer/Stakeholder Workshop, April 29, 2009 Review of Order Analysis and Review of Order Analysis and Allocation Proposals Allocation Proposals 2

Orders Orders Excess Orders Placed for 2009 (Percent by Volume; excluding AWBA & Ag Pool) Muni 43% Other 1% Remarket 12% Indus 28% SRP 6% CAGRD 10% Customer/Stakeholder Workshop, April 29, 2009 Order Size Order Size 180,000 160,000 140,000 � 50% of orders are less than 700 af 120,000 � 90% are less than 30 kaf 100,000 Volume � Therefore, on a volume basis, A2E strategies must focus on managing large orders 80,000 60,000 40,000 20,000 - % % % % % % % % % % % % % % % % % 2 8 4 0 7 3 9 5 1 7 3 9 6 2 8 4 0 1 2 2 3 3 4 5 5 6 6 7 8 8 9 0 1 Percent of Orders Customer/Stakeholder Workshop, April 29, 2009 3

Allocation Proposals Allocation Proposals Hypothetical Implementation Implementation Hypothetical � Fake example #1 : Single pool, with access based on scoring � Highest score: Muni provider, inside CAP service area, reducing CAGRD reliance through direct delivery � Lowest score: Speculator, with no previous history, earning long-term storage credits outside of CAP service area 2 6 3 9 1 7 4 5 Hypothetical Hypothetical Implementation Implementation 8 Customer/Stakeholder Workshop, February 24, 2009 � Fake example #2 : Three pools, with separate eligibility requirements � Pool A: Muni providers and CAGRD � Pool B: Industrial users storing at GSFs � Pool C: Unrestricted Customer/Stakeholder Workshop, February 24, 2009 Customer/Stakeholder Workshop, April 29, 2009 Elements Under Consideration Elements Under Consideration for a Revised Staff Proposal for a Revised Staff Proposal 4

[see “ [see “ Excess_Analysis_Tool_4_29_09.xls Excess_Analysis_Tool_4_29_09.xls” ” ] ] Discussion Discussion 5

S end comments & questions to Ken S easholes (kseasholes@ cap-az.com) 6