president, we received correspondence from bawsca raising a series of issues. and the first of those issues was about wsip scope. i think what we heard today is that there is no abandonment of any project that's in wsip. there is no change of scope to any project in wsip that would impact the level of service provided by that project. >> yes. >> and that the only impact to levels of service is that some of them -- because the project is delayed, some of them are are available to us later than previously planned. >> yes. >> the process is the same, but the plan is a unavoidable some of the benefit will be delayed. the last piece of that logic is that we are not in the reprogramming of things proposing that any of those level of service projects be delayed more than is physically necessary. >> absolutely. >> okay. >> so, there is no change to the level of service ultimately to be derived. there is some delay in some elements of the level of service . >> right. >> do you have any quantification of that? >> we started quantifying those. specifically, there were two

i, too, have concerns about the proposal of bawsca to transfer funds from the watershed environmental improvement program into capital programs. i, too, thank mr. jensen for pulling back on that. it does give me a chance to comment on the annual report for the wiip that was presented last december, i wasn't able to come, but i thought it was a great report. really exciting things happening throughout the watershed. we personally appreciated the puc's contribution tox acquisition of dos rios at tuolumne and san joaquin. that will be a [speaker not understood] to the san joaquin river wildlife refuge. i want to congratulate staff, especially tim ramirez who is here for the good work they've been doing. we had a good meeting up in moccasin on friday, [speaker not understood]. progress is made on the upper tuolumne river [speaker not understood] system. it is a little behind schedule. every three years, or 20-year. progress is being made, and this is really all helping the puc meet the obligations of the environmental stewardship policy. so, we really appreciate you taking that seriously

bawsca. >> good afternoon, mr. president and members of the commission. >> good afternoon. >> art chancing with bawsca. i wanted to start by addressing something commissioner moran raised regarding the water supply agreement update. it references the june presentation of this commission about our working on water supply management -- future water supply management issues. i look forward to that discussion with you. it doesn't necessarily relate to provisions of the agreement, although there are some that relate to that. steve ritchie and i have begun working on how we might choreograph a presentation to you. that will go on in the next several weeks once he gets back to japan. we are working on it and look forward to it. the second item commissioner moran referenced was rate structure. todd and i discussed that yesterday. we had hoped to do some work, preliminary work on that this fiscal year. our time was consumed with the preparation issuance of the bonds so we did not make headway we had hoped. and it is somethi

bawsca. >> good afternoon, mr. president and members of the commission

however, the wholesale customers will then need to pay for the bonds that bawsca has issued so that we the puc will serve as a collection and paying agent so that with will then bill the wholesale customers for their portion of those bonds so that overall net-net the customers will have a little bit of savings which is represented by the interest rate savings on the outstanding bonds. so, overall you see a five rate comment, a 10% reduction overtime. the rates that the wholesale customers are being charged. however, what we'll then be doing is taking the information from bawsca and adding back what we'll need to collect from them to pay the bawsca bonds. >>> this is a pennies per gallon slide and, again, it's just showing the costs going from about a third of a penny up to about two-thirds of a penny over time. the drop that you'll see in the fiscal '14 bar is just the rate savings that i just described. but the increases that you'll see over the next few years is primarily due to the debt service coming online. and then our costs will flatten out once all the wsip bonds have been issu

support our request to revise the program, and also included in the commission packet is a letter from bawsca dated april 17th, which includes comments on our proposed wsip provisions. so, why is it that we have to revise the program? it is not unusual for a program of this complexity to go through revisions periodically. as project moves through the various phases of pre-construction and then into construction, new information becomes available and new challenges are also oftentimes encountered in the field. revisions to our schedule and budgets then need to be done to incorporate this latest knowledge understanding and analysis. these revisions also allow us to identify some of the project savings that can be used to compensate for project overruns. and despite the fact that we have identified a number of savings on several projects, the current approved wsip budget is inadequate. so, with revisions to that budget must be made so we can secure the funding required to complete all our projects. the california water code also requires that we seek your approval for schedule revisions when sch

>> we have had -- one of the items we've had outstanding for a while is to have discussions with bawsca about potentially changing the rate structure, changing the fixed and variable portion on the rate. and i know that there is some work ongoing and i guess my question is clearly we're not going to have anything for this next rate cycle. and what i am hoping is that we're tracking this so that we will have something for the next rate cycle. so that a year from now we'll have something to look at that would reflect our best work on this. >> anyone like to respond to that? todd? >> todd read strong, assistant general manager and cfo. we are thinking about that, commissioner, and we'll be reviewing that as well with mr. jensen and his successor as well, given that he will be retiring soon. we have plenty of time to review it. and also with our recent bawsca prepayment, which is in your packet today as well, that is also in part moved from our perspective to greater fixed cost recovery. so, that was one of the consequences of that structure. and more is to come and we'll review that with m