Dear Shareholder/Customer of Pleasant Valley Mutual Water Company:

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   As you are no doubt aware, the State is experiencing a severe water shortage. The reservoirs on the State Water Project and Metropolitan Water District are critically low. In addition, the lack of rainfall has affected groundwater levels, the source of approximately 80% of the water delivered by PVMWC. The County agency which allocates groundwater has reduced the Company’s allocation by an additional 20%. This has forced us to purchase more water from Calleguas Municipal Water District. P13rchased water costs more than five times as much as our pumped groundwater. This increase must be passed on to the customers.

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   Your Board of Directors hired a Water Rate Consultant to study water use and make recommendations to the Board as they develop a rate structure to achieve the goals of conservation and cost recovery in an equitable manner. The new rate structure features lower fixed fees, called a “Service Charge”, elimination of the “Assessment” because there is no current Capital Project requiring it, and a “Step” structure that increases unit costs as more water is consumed. The new rate structure also does NOT include any water in the “Service Charge”.

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Effective Date: July 1, 2016

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– Warren Manzer, Board President