TABLE OF CONTENTS SUPPLEMENT TO RATES & RULES (Updated July 1, 2017)

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TABLE OF CONTENTS SUPPLEMENT TO RATES & RULES (Updated July 1, 2017) I. CHARGES FOR WATER SERVICE... 2 A. METERED SERVICE... 2 B. SEPARATE PRIVATE FIRE PROTECTION LATERAL... 4 II. INSTALLATION CHARGES... 4 A. CHARGES FOR PERMANENT METER AND LATERAL SERVICE... 4 B. FIRE HYDRANTS... 4 C. UTILITY PERMITS... 4 III. TEMPORARY SERVICE... 5 A. CONSTRUCTION METER... 5 B. ADDITIONAL CHARGES FOR TEMPORARY METERS... 5 IV. OTHER FEES, CHARGES, AND DEPOSITS... 6 A. DELINQUENT ACCOUNTS... 6 B. AFTER HOURS SERVICE... 6 C. ABANDONMENT OF SERVICE... 6 D. SECURITY DEPOSIT... 6 E. DEPOSIT FOR METER TEST... 6 F. RETURNED CHECK CHARGE... 6 G. CREDIT CARD CHARGEBACK OR REVERSAL FEE... 6 H. EMERGENCY SHUT-OFF SERVICE... 6 I. MISSED WATER CONNECTION APPOINTMENT... 6 J. BILLING FEE FOR NON-COMPLIANT FLOATING METERS... 6 K. ESTIMATED SERVICE DAMAGE CHARGE... 6 L. FIRE FLOW TESTS... 6 M. HYDRAULIC FLOW ANALYSIS... 6 N. EASEMENT QUITCLAIMS... 6 O. REMOTE SERVICES... 6 P. DROUGHT-RELATED FINES... 7 Q. DOCUMENT REPRODUCTION FEE... 7 V. CAPACITY FEES... 7 A. SINGLE-FAMILY RESIDENTIAL... 7 B. OTHER... 7

BILLING Bills are rendered bi-monthly except for certain meters showing large water use and temporary meters, which are billed monthly. For payment of current and past due bills, see Rates & Rules. I. CHARGES FOR WATER SERVICE A. Metered service 1. Readiness-to-Serve Charge fixed charge for domestic, commercial, industrial, agricultural, public authority, and commercial-other customers. The rates for these charges were previously approved by the Board on August 31, 2015. Meter Size Bi-monthly Charge Monthly Charge Daily Rate 5 8 x 3 4 inch $ 21.80 $ 10.90 $.3633 1 inch 30.68 15.34.5113 1-1 2 inch 46.86 23.43.7810 2 inch 64.62 32.31 1.0770 3 inch 118.88 59.44 1.9813 4 inch 196.88 98.44 3.2813 6 inch 381.98 190.99 6.3663 8 inch 619.74 309.87 10.3290 10 inch 925.72 462.86 15.4286 Water Charges delivered through the meter are in addition to the Readinessto-Serve Charge. 2. Water Charge a variable commodity charge for all water used based on units of 100 cubic feet (HCF) or 748 gallons. The current water charge is considered a Level 1 Drought Watch. The water charge for Drought Watch Levels 2 through 4 will be determined as needed and follow the Proposition 218 approval process. These charges were previously approved by the Governing Board on August 31, 2015, except for the Commercial rate that was approved on May 11, 2016, and the Public Agency rate that was approved on August 31, 2016. a. Single-family domestic use in a bi-monthly billing period: 0-10 HCF $ 3.86 11-16 HCF $ 4.75 17-27 HCF $ 6.39 28 and above $ 6.90 b. Rate for Multi-Family Residential accounts $5.93 per HCF c. Rate for Public Agency accounts $6.58 per HCF d. Rate for Commercial accounts $6.08 per HCF e. Rate for Construction accounts $9.35 per HCF - 2 -

3. San Diego County Water Authority (CWA) Surcharges: These charges reflect the pass-through charges from CWA. The Sweetwater Authority (Sweetwater) Governing Board has the authority to pass-through future increases to rates and charges imposed on wholesale water sold to Sweetwater. Said passthrough authority is in effect through July 1, 2019. There are four (4) components that apply to the pass-through charges: a. The Infrastructure Access Charge (IAC) funds a portion of CWA s fixed costs. It is determined on the basis of the size of the meter serving a parcel and is a fixed charge levied on all retail meters within the service area. The IAC for the calendar year 2017 are as follows: Meter Size Bi-monthly Charge Monthly Charge 5 8 x 3 4 inch $ 5.74 $ 2.87 1 inch 9.18 4.59 1-1 2 inch 17.22 8.61 2 inch 29.84 14.92 3 inch 55.10 27.55 4 inch 94.14 47.07 6 inch 172.20 86.10 8 inch 298.48 149.24 10 inch or larger 447.72 223.86 b. The Customer Service Charge is an allocation of Sweetwater s share of CWA s cost to support its customer service function. Sweetwater s share is based on a three-year rolling average of water purchased from CWA. The Customer Service Charge pass-through for 2017 is 5 cents ($0.05) per HCF. c. The Storage Charge is an allocation of Sweetwater s share of the costs of CWA s Emergency and Carryover Storage Program. Sweetwater s share is based on a three-year rolling average of water purchased from CWA. The Emergency Storage Charge pass-through for 2017 is twenty cents ($0.20) per HCF. d. The Supply Reliability Charge is an allocation of Sweetwater s share of the costs associated with CWA s highly reliable water supplies. Sweetwater s share is based on a five-year rolling average of water purchased from CWA. The Supply Reliability Charge pass-through for 2017 is ten cents ($0.10) per HCF. - 3 -

B. Separate private fire protection lateral Lateral Size Bi-monthly Charge Monthly Charge Installation Charge 4 inch and smaller $ 40.00 $ 20.00 By estimate only 6 inch 76.00 38.00 By estimate only 8 inch 114.00 57.00 By estimate only 10 inch 132.00 66.00 By estimate only 12 inch 152.00 76.00 By estimate only II. INSTALLATION CHARGES A. Charges for permanent meter and lateral service 1. The charge for meter and lateral installations will be based on actual cost and requires an initial deposit based on an Engineering Department estimate. The charge will include the CWA capacity charge and the Sweetwater capacity fees as required in the Rates and Rules. A final bill for costs not covered by the deposit or refund of excess deposit will be made to the customer upon completion of the work. 2. Reduction in meter size on existing lateral: No service charge or refunds will apply. 3. Relocation of meter and lateral: Charges covered under Section 11.A.1 above will apply. There will be no service charge for setting a meter. 4. Increase in meter size: Charge will amount to any difference in the standard meter charge and cost of the new lateral. The charge will also include any difference between the CWA capacity charge and Sweetwater capacity fees as required in the Rates and Rules. B. Fire hydrants Charges for fire hydrants will be for actual installation costs. The charge for meter and lateral installations will be based on actual cost and requires an initial deposit based on an Engineering Department estimate. A final bill for costs not covered by the deposit or refund of excess deposit will be made to the customer upon completion of the work. C. Utility permits In addition to the above water lateral, fire hydrant, and fire protection lateral installation charges, a charge for utility permits and inspection fees will be made to reimburse Sweetwater for such fees paid to that agency where work is performed. The amount of the fees will be determined at the time of application for service as established by that agency having that jurisdiction. - 4 -

III. TEMPORARY SERVICE A. Construction meter The following charges will apply for this type of service: Meter Size Monthly Charge 3-inch $ 59.44 Charges for service for less than a thirty-day (30) period will be prorated, and the water charge will be $ 9.35 per HCF. CWA surcharge is $ 0.35 per HCF. B. Additional charges for temporary meters 1. Meter Size Approximate Capacity Installation Deposit 3-inch 400 GPM $ 1,200.00 2. The following shall be deducted from the meter deposit once the meter has been returned to Sweetwater, and the closing bill will be calculated as follows: a. Any unpaid charges for minimum monthly fees or water use. b. The cost of any repairs required or replacement of parts lost or damaged. c. The cost of a spanner wrench if one was issued and not returned - $30.00. If there is a balance due, a closing bill will be mailed; if there is a credit balance, a refund check will be processed. 3. If the closing bill has not been paid within eight (8) weeks after the final bill is rendered, the account will be referred to Sweetwater s collection agency due to nonpayment. 4. Unauthorized use of water through fire hydrants or other Sweetwater facilities either by direct means or through the tampering of a temporary meter shall be subject to an administrative fine of $1,000, plus the estimated cost of unauthorized water which will be billed to the responsible party. - 5 -

IV. OTHER FEES, CHARGES, AND DEPOSITS A. Delinquent accounts 1. Late fee $ 20.00 2. Handling fee 50.00 3. Illegal connection fee 135.00 4. Damaged padlock or barrel lock 15.00 5. Damaged 3 4 -inch locking device 25.00 6. Damaged 1-inch locking device 40.00 7. Damaged 3 4 -inch locking pipe plug 20.00 8. Damaged 1-inch locking pipe plug 20.00 B. After hours service $ 170.00 C. Abandonment of service All lateral sizes D. Security deposit By estimate only A security deposit is calculated using twice the average bill for the service on the account for the previous twelve (12) months. E. Deposit for meter test $ 90.00 F. Returned check charge $ 25.00 G. Credit card chargeback or reversal fee $ 25.00 H. Emergency shut-off service 8 -inch through 2 inch meter service $ 35.00 3-inch and larger meter service Actual cost, including overhead I. Missed water connection appointment $ 30.00 J. Billing fee for non-compliant floating meters $ 60.00 K. Estimated service damage charge $ 400.00 L. Fire flow tests (per hydrant or location) $ 1,000.00 Fire hydrant flow tests requested to complete fire sprinkler calculations or to determine available flow in a specific area. M. Hydraulic Flow Analysis (per hydrant) $ 300.00 N. Easement quitclaims $ 700.00 Process the removal of a Sweetwater easement from a property as requested by the property owner. A value may be assessed, applicable to the easement, if it is determined that Sweetwater or its predecessor provided compensation to acquire the easement. O. Remote services $ 700.00 Remote water services are not in compliance with Sweetwater s construction specifications. This fee recovers the cost to process the approval by the Governing Board for a remote water service requested by the property owner, for - 6 -

a parcel that is land-locked and does not front a water main in a Sweetwater easement or public right-of-way. P. Drought-related fines Administrative fines may be levied for violations of prohibited water conservation measures. See the Drought Response Plan for detailed information on these fines. Q. Document reproduction fee $ 0.10 per page V. CAPACITY FEES Collection of capacity fees is necessary to allocate the cost of existing infrastructure to new water connections or to existing water connections which require additional capacity to serve the property due to change in use or expansion of use. This fee was established by Resolution 17-02 on January 25, 2017. A. Single-Family Residential Effective Date Capacity Fee (1) Unit (2) July 1, 2017 $4,039 Equivalent Dwelling Unit July 1, 2018 $5,778 Equivalent Dwelling Unit (1) Based on 2016 Capacity Fee study with a two year phase-in. (2) Equivalent Dwelling Unit = 1 Single Family Residential Account, based on gallons per capita per day pursuant to the Sweetwater Authority s 2015 Urban Water Master Plan (91), and the average household size per US Census data (3.29 persons per household). B. Other(Multi-Family Residential, Mobile Home, Irrigation or Commerical) EDU Estimated Usage (3) (gallons per day) Factor of Base EDU Capacity Fee (4) All Customers-Base 1 299 100% Multi-Family Services 1 169 56% Mobile Home Park Services 1 109 36% (3) Based on FY water use presented in the 2015 Urban Water Master Plan. (4) Discussion of EDU factors can be found in the 2016 Capacity Fee Study. - 7 -