CityofPhiladelphiaWaterDepartment

2013InvestorConference

The information contained herein was prepared as part of a presentation scheduled to have been given April 18 and April 19, 2013, at an investor conference conducted by the City of Philadelphia, and is provided solely in response to a Right-to-Know Request, Slaughter CP 2013-1250. No representation is made as to the accuracy and completeness of such information, nor shall its being provided herewith create any implication that there has been no change in the matters described or referred to therein since the dates of the conference or the date as of which particular information is given, if earlier.

DISCLAIMER

300YearsofManagementExperience
J hClare, Cl Joseph CPA Finance 40years ChristopherCrockett,PE 20years Planning SteveFurtek,PE Engineering DebraMcCarty Operations Gerald G ldLeatherman, h Esq Administration JoanneDahme PublicAffairs DavidKatz Compliance MichelleL.Bethel WRB
2

30years

26years 35years HowardNeukrug,PE,BCEE Commissioner Mami Hara,AICP,ASLA ChiefofStaff ScottSchwarz Schwarz,Esq ChiefCounsel 32years

34years

24years

32years

26years

20years

*SEE DISCLAIMER ON COVER PAGE

ExecutiveSummary
Integrated,regionalwaterandwastewaterservicesto SoutheasternPA RecognizedleaderintheUSWaterIndustryforourinnovationandleadership Strong,experiencedandstablemanagementteam Alonghistoryofconservativebudgetingandprojectionsandsignificantreserves RecentlyupdatedandintegratedStrategicBusinessPlan,FinancialPlanandCapital Plan Historyofapprovalsforsteadyrateincreasesaveraging~6%peryear Ratesremainlowincomparisontootherregionalutilities AstrongvisionformovingtowardtheUtilityoftheFuture Instrongpartnershipwithourregionalandnationalregulators,environmental advocacygroups groups,localconsumeradvocatesandbusinessleadersandourCity Government

*SEE DISCLAIMER ON COVER PAGE

ThreeIntegratedPlanstoSupportSustainable, C tEffective Cost Eff ti Infrastructure I f t t

StrategicBusinessPlan
Clearandunifiedvision,direction,initiatives Focuseddevelopmentofstaffthroughoutdevelopmentoftheplan anditsinitiatives

FinancialPlan
Increaseincoverageandliquidity Corollary C ll focus f onfi financial i llit literacyand dsupport tof ffinancial fi i l responsibilitiesinternallyandexternally

CapitalPlan
Focuseduponmeetingthefourcomponentsofsustainablecost effectiveinfrastructuremanagement Stateoftheartplanningapproachesandtechnologiesemployed

AdaptedfromUSEPAFourPillars

*SEE DISCLAIMER ON COVER PAGE

FourComponentsofSustainable,CostEffective I f t t Management Infrastructure M t

Assetmanagement
Makingtherightinvestmentsattherighttime

InfrastructureFinancingandtheFullCostofWater
Usingallavailableoptionstoinvestinoursystem

WaterandEnergyEfficiency
Adoptingsustainablepracticesandtechnologiesforimproving efficiency,reducingcostsandaddressingfutureneeds

AlternativeTechnologyOptimization
Usingthebest,thenewandtheinnovativesolutions

AdaptedfromUSEPAFourPillars

*SEE DISCLAIMER ON COVER PAGE

SystemOverview
2 000employeesservingover2millioncustomers 2,000 over200squaremiles
S i Service ServiceArea:230sq.mi. Retail:134sq.mi. Wholesale:96sq. mi. Wholesaleandretailwater, wastewaterandstormwater I f t t Infrastructure Estimatedreplacementvalue:$30B 6modernwaterandwastewater treatmentfacilities f ili i Over1BillionGPDofdrinking water storage N Nearly l 7 7,000 000miles il of fwaterand d sewerpiping P3sforSludgePelletization, Cogeneration AMR Cogeneration,

ActiveAccounts:581,587 Populationserved:2.3million AnnualOperatingBudgetof$702M Annual CapitalBudgetof$250+M

*SEE DISCLAIMER ON COVER PAGE

OverviewofExistingRetailRatesandCharges
Water+Wastewater MeterBasedBilling Morethan99.5%AMRcoverage Approximately98%collectionrate Municipal propertiesarebilled100%ofcostofservice

Stormwater Management NewParcelBasedBillinginplace Successfulimplementationofaparcelbasedbillingsystemforstormwater Adoptedfouryeartransitiontominimizeincreasestonegativelyimpactedcustomers Initiatedbillingofstormwater onlyproperties Developedanumberofsupportiveprograms: CitizensAdvisoryCommittee Stormwater St t Management M tI Incentives ti Program P Stormwater AssistancePhaseinProgram Enhancedstormwater CAPprogram

*SEE DISCLAIMER ON COVER PAGE

HistoryofImplementingRateIncreases

$80 $70 $60 RateCharges $50 $40 $30 $20 $10 $0 7/93 7/94 7/95 9/01 7/02 7/03 2/05
3.1% 2.3% 2.3% 3.0% 12.6%

5/8"MeterResidential* 600Cu.Ft.monthly

14% 12% 10% %Increase

6.3% 5.5%

8%
5.7% 5.8% 5.0%

6.7% 1.9% 0.7%

4.3%

6% 4% 2% 0%

6.7% 5.8%

8/05

7/06

7/07

11/08

7/09

7/10

7/11

1/13

7/13

7/14

Effective Date Water Sewer %Increase

Source:PhiladelphiaWaterDepartment 8

*SEE DISCLAIMER ON COVER PAGE

RetailRatesareComparableRegionally and dNationally N ti ll

$100 $90 $80 $70 $60 $50 $40 $30 $20 $ $10 $0

NationalComparison(2011) CombinedHouseholdWater,Wastewater,andStormwater Charges

2012RegionalResidentialRateComparisons
Companies AquaPennsylvania PennsylvaniaAmericanWater NewJerseyAmericanWater NorthPennWaterAuthority NorthWalesWaterAuthority DoylestownTownship LowerGwyneddMunicipalAuth. CCMUA(CamdenCounty) CityofTrenton,NewJersey PhiladelphiaWaterDepartment
9

WaterCharge $59.90 $54 60 $54.60 $37.26 $23.25 $20.16 $29.02 N/A $37 26 $37.26 $28.11 $27.50

SewerCharge N/A N/A N/A N/A N/A $38.75 $29.23 $34 92 $34.92 $25.69 $21.14

StormwaterCharge N/A N/A N/A N/A N/A N/A N/A N/A N/A $12.10

*SEE DISCLAIMER ON COVER PAGE

ImplementingtheStrategicPlan
Vision

Tobe T b America's A i ' model d l21 21st tcentury t urban b water t utility tilit one thatfullymeetsthecomplexresponsibilitiesofourtimeand ourenvironment.
Values
Professionalism |Employingahighlyqualifiedworkforcethattakespridein maintainingthehighestlevelofservice Quality |Supplyingproductsandservicesofthehighestpossiblestandards throughefficiencyofoperation Service|Providingcourteous,respectful,vigilant,andsupportiveservicestoour customersandthepublic

10

*SEE DISCLAIMER ON COVER PAGE

TheUSWaterIndustryinthe21st Century 10K KeyT Trends d to t W Watch t h

11

Uncertaineconomy Adequacyofwaterresources(quantityandquality) Aginginfrastructure(expandedcapitalneeds) Shiftingwaterdemands(demographicsandconservation) Changingworkforce,dynamictalentlifecycle Newtechnologyapplications Socialmediaexplosion Increasing/expandingregulations ResourceRecoveryandEnergyEfficiency(R2E2) Cli Climate uncertainty i

ParaphrasedfromTheWaterResearchFoundation,2012

*SEE DISCLAIMER ON COVER PAGE

Strategic g PlanFocusAreas
Supportedbyexecutivesandmanagement management,theStrategicPlanistheumbrellaunderwhichPWD makes/executesplansofactionrelatedtotheseareas:

Fi Financial i lHealth H lth CoreServiceDelivery InfrastructureInvestment CustomerService

W kForce Work F St Strength thand dDi Diversity it FacilityandSystemPlanning SustainableOperations SupportoftheBusinessCommunity

TheslidesthatfollowillustratehowPWDupholdsitsprogressivestrategicgoalsinitsresource andfinancialplanning.

12

*SEE DISCLAIMER ON COVER PAGE

StrongCommitmenttoAssetManagement
Favorable,affordableCSOLTCPbasedonGreen Infrastructure Doubling gofcapital p reinvestmentrateto$ $250+Mper p year Longterm(25year,$10Billion)CIPplanninghorizon Modernworkorder/assetmgmtsystems
Maximo,CityWorks
Engineering Engineering, Administration& MaterialSupport $210M 13%

FY2014 FY2019 CapitalImprovementProgram $1.673B

WaterTreatment,DistributionandStorageSupply/ DemandStudy Ne WPCPFacilit New FacilityPlans SewerAssessmentPlan PredictiveRisk/ConsequenceDistributionSystem Model MajorvoiceinDConinfrastructurefunding Strategicuseofinnovativefinancing:
PPP GreenInfrastructurefinancing Encouragingprivatesectorinvestment

TreatmentFacilities $388M 23%

ConveyanceSystem $312M 19%

CollectorSystem/CSO/ FloodRelief $763M 46%

13

*SEE DISCLAIMER ON COVER PAGE

PWDCapitalProgram
(inmillions) $12,000 $10,000 $8,000 $6,000 $4,600 $4,000 $2,000 $0 $119 $235 1yearCIP $1,673 $695 6YearCIP 25YearCIP 2005 2014 $10 000 $10,000

14

*SEE DISCLAIMER ON COVER PAGE

CapitalFund SourcesofFunding FY2014andFY2019

(inthousands) $400,000 $350 000 $350,000 $300,000 $250,000 $ , $200,000 $150,000 $100,000 $50,000 $
Total RevenueBonds (longtermdebt) ResidualFund OperatingFund
$36,000 $19,000 $19,800 $22,475 $234,533 $195,733 $335,952

$277,477

2014 2019

ExcludesPrivate,StateandFederalFund(2014 $620M,2019 $312M)

15

*SEE DISCLAIMER ON COVER PAGE

PWDCapitalProjects

SynagroPelletizationFacility|BiosolidsRecyclingCenter

NewCoGenerationPlant|NortheastWPCPPhiladelphia

NewDrinkingWaterStorage|EastPark
16

NewSewageOverflowStorageFacility|VeniceIsland,Manayunk

*SEE DISCLAIMER ON COVER PAGE

OneWater,OneRegion
Rain Terrorism Sourcewater Protection Radiation Flow Management Endocrine Disruptors WaterPollution ControlPlants CWater TreatmentPlants Distribution Systems Rates
17

Flooding Land Management Marcellus Shale Land Conservation Sewers ClimateChange GreenCity, CleanWaters Enhanced Economy

Rivers Recreation+ QualityofLife

21st

Green Infrastructure Reducing Poverty

Sustainable City+Region

*SEE DISCLAIMER ON COVER PAGE

AnIntegratedApproachtoWater

Land

Water

Community

Infrastructure f
18

*SEE DISCLAIMER ON COVER PAGE

GreenCity,CleanWaters
CombinedSewerOverflow(CSO)LongTermControlPlan
Acceptedandendorsedbyourpartners: Regulators:PADEPandEPA NonProfits:NRDC,SierraClub,CleanWaterAction,TheNature Conservancy,TrustforPublicLands CoFunders:Rockefeller,LivingCities,andWilliamPennFoundations
Memorializedby: 2011ConsentOrderandAgreement(COA)withthePADepartmentof EnvironmentalProtection 2012LandmarkPartnershipAgreementandAdministrativeOrderforCompliance onConsentwiththeUSEnvironmentalProtectionAgency

19

*SEE DISCLAIMER ON COVER PAGE

GreenCity,CleanWaters
CombinedSewerOverflow(CSO)LongTermControlPlan
Philadelphiascosteffective,multibenefitnationalmodel forstormwater management
25yearagreementtospend$1.2billiononaNPVbasis($2+billiontotal)withspecific targetsfor: 10,000 10 000TotalGreenedAcres 85%OverflowReductionVolume Greyinfrastructuretosupportgreeninfrastructurewherenecessary

20

*SEE DISCLAIMER ON COVER PAGE

GreenCity,CleanWaters
CombinedSewerOverflow(CSO)LongTermControlPlan

21

*SEE DISCLAIMER ON COVER PAGE

PhotoCredit:PaulRiderforPhiladelphiaWaterDepartment

*SEE DISCLAIMER ON COVER PAGE

PhotoCredit:PhiladelphiaWaterDepartment

*SEE DISCLAIMER ON COVER PAGE

PhotoCredit:PennsylvaniaHorticulturalSociety

*SEE DISCLAIMER ON COVER PAGE

LegislativeUpdate
NewRateMakingBody November2012,areferendumpassedallowingfortheestablishmentofan independentratemakingbody,appointedbytheMayor,toberesponsiblefor fixing gandregulating g gratesandchanges. g April2013,CityCouncilOrdinanceintroducedsettingthecompositionand standardsfortheNewRateMakingBoard Board.Ordinancehighlights:
5memberboard,appointedbytheMayorandconfirmedbyCityCouncil Updatedandadditionalfinancialstandards 20%25%paygocapitalfunding 120daysofunrestrictedworkingcapital Fundingof100%ofprojectedbudget,excludingtransfers Providesforpreparationandconsiderationoffinancialstabilityplan
25

*SEE DISCLAIMER ON COVER PAGE

ChangestothePWDFinancialPlan
TrendupDebtServicecoverage 1.2xto1.27xby2019 DecreaserelianceontheRateStabilizationFund(RSF)tomaintaincoverage Improveliquidityandfinancialreserves IncreaseRSFfloorfrom$45millionto$100million Targethigherlevelsofinternallygeneratedfunds IncreaseCapitalProjectPayGo 23%forPWDvs.~50%forotherutilities DecreaseDebtRatio* 71%forPWDvs.~30%forotherutilities Aggressivelyseekhighercreditrating AtoAA For$1BinBonds,thiscouldsave~$6.0millionperyeardebtservice Continuetorefundexistingdebtasapplicable
*Netfundeddebt/(fixedassets+workingcapital)
26

*SEE DISCLAIMER ON COVER PAGE

WaterFundBudgetSummary,FY2013(MidYear)
(inThousandsofDollars) ( )
Budget
Revenues Locally yGeneratedNonTaxRevenues RevenuefromOtherGovernments RevenuefromOtherFunds TotalRevenues ExpendituresandEncumbrances PersonalServices EmployeeBenefits PurchaseofServices SuppliesandEquipment C Contributions, ib i Indemnities I d i i and dTaxes T DebtService PaymentstoOtherFunds TotalExpendituresandEncumbrances OperatingSurplus(Deficit)fortheYear , 584,399 1,500 85,990 671,889 115,698 99,198 156,864 53,935 6 602 6,602 201,986 57,605 691,889 (20,000) 20,000

MidYear Projection
, 573,879 2,250 78,066 654,195 109,723 102,861 147,130 50,766 6 501 6,501 201,986 55,226 674,196 (20,000) 20,000

Variance
(10,520) ( , ) 750 (57,924) (67,694) (6,975) (6,975) (9,734) (3,169) (101) (2,379) (22,359)

Liquidation ofpriorperiodencumbrances Net FundBalanceAvailable,June30,2013

27

*SEE DISCLAIMER ON COVER PAGE

FundBalances
Fiscal Year
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
28

RateStabilization FundEndingBalance
$197,413,902 $183,948,979 $153,035,865 $136,283,712 $156,140,387 $128,300,313 $128,902,508 $153,909,810 $185,611,707 $183,130,079 $147 636 618 $147,636,618 $145,692,991 $157,050,374 $166 013 978 $166,013,978 $118,446,978**

ResidualFund EndingBalance
$1,922,853 $8,238,385 $15,588,666 $23,646,036 $6,178,000 $10,988,000 $8,746,738 $6,866,582 $1,696,986 $2,239,187 $18 178 750 $18,178,750 $20,883,623 $34,907,993 $44 702 071 $44,702,071 $0*
*After f transfer f toDSRFtomeetAGM shortfalls **Aftertransferof$47,567,771to WaterRevenueAccount

*SEE DISCLAIMER ON COVER PAGE

NewFinancialPlan I Increases C Coverage

SeniorDebtServiceCoverage*

Year FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Source:Black&Veatch

AssumedRevenueIncreases PercentIncrease MonthsEffective 4.48% 6 4.48% 12 4 48% 4.48% 12 5.75% 12 5.75% 12 5.75% 12 4 50% 4.50% 12

*IncludesassumednewmoneybondissuancesthroughFY2018
29

*SEE DISCLAIMER ON COVER PAGE

NewFinancialPlanProjectedCashFlow*
(inThousandsofDollars)
FiscalYear
TotalServiceRevenue ExistingRates TotalAdditionalServiceRevenue TransferFrom/(To)RateStabilization Fund TotalRevenues TotalOperatingExpenses NetRevenuesAfterOperations TotalSeniorDebtService SeniorDebtServiceCoverage EndofYearFundBalanceResidual Fund: EndofYearFundBalanceRate StabilizationFund: CapitalAccountDeposit TransfertoConstructionFund (Residual)
30 *Black&VeatchProjections

2013
564,676 9,512 45,295 , 640,630

2014
562,762 51,553 17,020 653,177 ,

2015
559,663 78,639 915 661,143 ,

2016
556,550 114,698 15,565 708,731 ,

2017
553,423 152,435 (3,835) 723,942 ,

2018
550,286 191,927 (2,885) 767,184 ,

2019
547,145 224,041 (43,255) 749,772 ,

(396,332) (402,888) (4058,315) (419,266) (432,914) (447,102) (461,855) 244,298 201,897 1.210 x 23,021 120,719 (19,380) 0 250,285 205,149 1.220 x 25,272 103,699 (19,864) (19,500) 255,828 207,987 1.230 x 27,480 102,784 (20,361) (20,500) 289,465 233,438 1.240 x 35,157 87,219 (20,870) (34,000) 291,028 232,8197 1.250 x 36,817 91,054 (21,392) (36,000) 320,082 254,031 1.260 x 44,124 88,169 (21,927) (44,300) 287,917 226,702 1.270 x 38,740 131,424 (22,475) (36,000)

*SEE DISCLAIMER ON COVER PAGE

SolidFinancialPerformancewithRevenues C i t tl E Consistently Exceeding di E Expenses

FY2012OperatingResults: OperatingRevenuesincreasedby$22.7million(4.0%)primarilyduetoa5.9%rateincrease O Operating i Expenses E increased i db by$17.44 $17 44million illi (4.8 (4 8%)due d primarily i il toa$15.3 $15 3million illi increase i in i payroll ll costs(primarilypensions)andincreaseof$10.6millioninpurchaseofcontractedservices Increaseinreserveaccounts,including:$9.0milliontoRateStabilizationFund(RSF),$18.9milliontothe CapitalAccountand$9.8milliontotheResidualFund
HistoricalOperatingResults* $Millions

Preliminary yBudgetary g y FY2013midy yearp projections j indicate: ProjectedRevenueLevelincreasedto$654millionduetoa5.8%waterandsewerrateincrease ProjectedExpenseLevelincreasedto$674millionduetoan$12.1millionincreaseinpensioncosts, $17.9millionincreaseincontractualservicesand$9.5millionincreaseindebtservicecosts ProjectedRSFwithdrawalof$47.5million
*Doesnottakeintoaccountdebtservicepayments Source:PhiladelphiaWaterDepartment

31

*SEE DISCLAIMER ON COVER PAGE

ManagingWholesaleContracts
Strategicallyreexaminingregionalopportunitiesforexpansionofservices Modernizing gourexisting, g,long gtermagreements g
Extendingterms Increasingmanagementfeesfrom10to12% RequiringwastewatersystempartnerstotakeonproportionateshareofCSOLTCPcosts Requiringwatersystempartnerstosharecostofsystemredundancyandreliability

Ourlargestcustomer,DELCORA,agreedtoanew15yearcontract(April, 2013)whichincludespaymentofa9.8%shareoffutureCSOLTCPcosts SimilarlyrenegotiatingcontractswithSpringfield,Abingtonand CheltenhamTownships Reviewingrelationshipwithourneighbor,AquaPennsylvania,formutual benefit

32

*SEE DISCLAIMER ON COVER PAGE

ManagingDebtProfilewith C Capacity it for f Future F t Financing Fi i Needs N d

PWDhasapproximately$1.832billionofdebtoutstandingasofJune30,2012,withanoverallfinal yinFY2041, ,and anaverage g lifeof9.67years y maturity
250

$67millionofunhedged variablerate(3.6%oftotal) $81.995millionofvariableratebondswithaswapthatterminatesonAugust1,2018(4.4%oftotal) $145.347millionborrowedunderthePennvest LoanProgram(7.6%oftotal) $215million authorized

CityofPhiladelphia WaterandWastewater OutstandingDebtService

$i inMillions

200

150

100

50

2013
33

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

WaterandWastewater

PennvestLoans

*SEE DISCLAIMER ON COVER PAGE

EmphasizingStrongCreditFundamentals + Performing P f i Consistently C i t tl

Conservativebudgetingandprojections; significant i ifi treserves

1
Strong S o gco commitment e to oproactive p oac e infrastructuremaintenance

3yearrateincrease

Essentialwaterand wastewaterservicestothe entiresoutheasternPA region

Financialperformancecontinuesto exceedpastprojections

4
Relativelylowratescomparedto localcompetition

34

*SEE DISCLAIMER ON COVER PAGE

ReducingCosts
NewStrategicBusinessPlanInitiatives ReInvesting i i inInfrastructure f Planning l i and dRenewal l ContinuousImprovementandmanagementreview Innovationinnewideasandtechnologies PublicPrivatePartnerships LeveragingResources/CoordinatingCapital NewFinancialPlan Formingpartnershipswithhistoricaladversaries EnergyPortfolioDiversification

35

*SEE DISCLAIMER ON COVER PAGE

PWDLeadership:2012Achievements
PWDisfocusedonconsistentimprovementandonlivinguptoitsmissiontocontinue tobeAmericasmostinnovativeutility.TheDepartmentsmanyaccomplishmentsare areflection fl i of fthis hi ongoing i commitment. i Herearejust j af fewf fromthis hi year: PWDhasbegunapilotprogramtoinvestigatethecosteffectivenessofusing geothermaltechnology whichusesheatfromtreatmentplantwastewaterto warmbuildingsonsite. ConstructionofourNortheastBiogasCogenerationfacilityisnearcompletion completion.This sitewillcapturethemethanegasthatwaspreviouslyawasteproductoftreatment andconvertitinto43millionkWh/yearofuseableelectricity. InFebruary,operationofthePWDBiosolids RecyclingCenterbegan.Thecenter recyclesenvironmentalwasteintofertilizerpellets,whicharenowbeing purchasedbyfarmersthroughouttheEastCoast.

36

*SEE DISCLAIMER ON COVER PAGE

PWDLeadership:2012Achievements
ThedevelopmentofourContaminantWarningSystemprotectsthepublicfrom actsofterrorismandotherassaultsonthewatersupplywithtimelydetectionof watercontaminationevents;it its sbeenhailedasanationalmodel. Forthe12thyearinarow,allofourdrinkingwatertreatmentfacilitieswere ytheUSEPAfordelivering gdrinking gwaterthatmeetsorexceeds awardedby qualitystandards100%ofthetime. TheDepartmentswatermainbreakrateiswellbelowthenationalaverage,with 30fewerbreaksthisyearthananyothermajorcity. PWDhaspartneredwiththeU.S.ArmyCorpsofEngineerstodevelopflood protectionsolutions l ,inthe h wake k of fHurricaneSandy d and dthe h increaseinnumber b andmagnitudeofrecentstorms.

37

*SEE DISCLAIMER ON COVER PAGE

2012SamplingofAwards&Recognition
U.S.WaterAlliance 2012U.S.WaterPrize Forexcellenceinurbanwatersustainability PennsylvaniaHorticulturalSociety (PHS)2012SustainabilityAward Forapproachestostormwatermanagement National N i lAssociation A i i of fCl CleanW WaterA Agencies i (NACWA)2012G Gold ldP Peak kPerformance P f Awards A d For100%regulatorycomplianceatour3WaterPollutionControlPlants U.S.EPAGreenPowerLeadershipAward Forcitywideachievementingreenpowerpurchasing DelawareValleyRegionalPlanningCommission(DVRPC)RegionalExcellenceAward BestRegionalEnvironmentalProgram,2012,GreenCity,CleanWaters PhiladelphiaParksAllianceLeadershipAward RecognitionofWaterCommissioner,HowardNeukrug,fordedicationasaparksadvocate,forfoundingthe OfficeofWatersheds,andforcreationofGreenCity,CleanWaters

38

*SEE DISCLAIMER ON COVER PAGE

ContactInformation
CityofPhiladelphia andPhiladelphiaWaterDepartment NancyWinkler,Treasurer (215)6862303nancy.winkler@phila.gov HowardNeukrug,PE,BCEE,WaterCommissioner (215)6856104 howard.neukrug@phila.gov

JamesLanham,DeputyTreasurer (215)6862145james.lanham@phila.gov Joe Clare,DeputyWaterCommissioner (215)6856106 joseph.clare@phila.gov

AdditionalinformationcanbefoundattheCitysandPWDsinvestorrelationswebsites: www.phila.gov/investor http://www.phila.gov/water/invest_relations.html

39

*SEE DISCLAIMER ON COVER PAGE

CapitalImprovementProgram FY2014 FY2019

FiscalYear
CapitalBudgetSummary
CollectorSystem/CSO/FloodRelief ConveyanceSystem Engineering,Administration&MaterialSupport

2005
28,510,000 21,930,000 22,604,000

2014
$106,860,000 36,085,000 32,208,000

20142019
$762,660,000 312,385,000 209,968,000

TreatmentFacilities Totals

46,000,000

60,000,000

388,000,000

119,004,000

$235,153,000

$1,673,013,000

40

*SEE DISCLAIMER ON COVER PAGE

ExampleofTrendstoWatch: PotentialFederalDrinkingWaterRegulations
Regulatory Actions NewLeadFreeDefinition Perchlorate ThirdRegulatory Determination(RD3) LongTermLCRRevisions(LTLCR) CarcinogenicVOCs(cVOCs) ThirdSixYearReview (SY3) Third RegDet.Regulations(ifEPAmakes positivedeterminations) *SDWADeadlines Feb.2013* Dec.2013 Mid2013 Sept.2013 Oct.2013 2015 2016/2017 Proposal Final Jan. 4,2014 Aug. 2014* 2015 2014/2015 2015 2015 2016 2018/2019

*SEE DISCLAIMER ON COVER PAGE

MeetingKeyPerformanceMeasures
Measurement
MillionsofGallonsofTreated W Water PercentofTimePhiladelphia's DrinkingWater MetorSurpassedState& FederalStandards MilesofPipelineSurveyedfor Leakage WaterMainBreaksRepaired AverageTimetoRepaira WaterMainBreak uponCrewArrivalatSite (hours) NumberofStormDrains Cleaned

FY06
94,139

FY07
95,374

FY08
93,679

FY09
91,747

FY10
91,560

FY11
91,250

FY12
87,341

100%

100%

100%

100%

100%

100%

100%

1,104 659

1,024 824

1,113 687

931 802

1,133 646

997 954

1,137 563

7.8

7.6

7.6

7.6

7.8

7.6

7.7

76,721

76,478

75,804

77,012

72,802

71,771

83,870

Source:PhiladelphiaWaterDepartment 42

*SEE DISCLAIMER ON COVER PAGE