PADRE DAM

AnnualReport 2013

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PADRE DAM 2013 ANNUAL REPORT — 5 4 — PADRE DAM 2013 ANNUAL REPORT We use it to cook, clean, bathe, and drink every day. The systems that remove wastewater from your home and transport it to a treatment facility are also critical. The infrastructure necessary to deliver water to your home and collect wastewater is a very complex system and heavily regulated. Our job is to provide high quality, reliable water, wastewater and recycled water services as efficiently as possible to 100,000 people in Padre Dam's service area. People often take for granted a reliable supply of safe, clean water because every time we turn on the tap, water comes out. Much of the critical infrastructure needed to provide water to your home or business is underground or tucked out of sight, but is vital in providing water on a daily basis. Padre Dam's water delivery system includes 389 miles of water pipeline, 28 water storage tanks, 16 pump stations and a staff of highly trained personnel working to ensure high quality water is delivered 24/7. That's enough pipeline to stretch from San Diego to Phoenix. Water supply diversification along with more stringent regulatory requirements, increased treat- ment costs, aging infrastructure and increased energy costs have all played a role in the rising cost of water. Padre Dam has no local water sources and relies 100% on imported water. To lessen the impact of the dramatic increase in the cost of imported water, Padre Dam has reduced staff and cut spending to ensure we are oper- ating in the most efficient manner. While we've made significant changes in the way we do business, Padre Dam remains dedicated to our customers and pledges the following: n Maintain the highest quality and reliability standards through replacement and maintenance of your complex water system. n We will protect the integrity of the $1 billion of infrastructure assets. n We will explore alternative water resources for the benefit of our customers. Best Regards, ALLEN CARLISLE CEO/General Manager Board of DIRECTORS FROM LEFT TO RIGHT DOUG WILSON Treasurer, Division I AUGIE CAIRES Director, Division IV WILLIAM POMMERING President, Division III JAMES PEASLEY Vice-President, Division V AUGIE SCALZITTI Director, Division II LETTER FROM THE GENERAL MANAGER/CEO WATER IS VITAL TO OUR EVERYDAY LIFE.

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