PALOMAR MOUNTAIN MUTUAL WATER COMPANY, INC.

RATES, FEES, AND CREDITS
JULY 2005

Annual dues--$30.00 charged per member, independent of the number of water service units, meters or water usage.

Annual Assessment--$76.00

Annual Meter Charge--$75.00

Water Usage Rate--Tiered System:

Tier One-1 gallon to 35,000 gallons, $4.95 per 1,000 gallons.

Tier Two-35,001-75,000 gallons-$9.95 per 1000 gallons.

Tier Three-75,001 to 110,000 gallons-$14.85 per 1,000.

Tier Four-110,001 to 145,000 gallons-$24.8 per 1,000 gallons.

Tier Five-145,000 to 180,000 gallons-$29.75 per 1,000 gallons or portion there of. Charged for metered water used, for raw water production, energy, pumping, storage, & transmission, distribution, operational supplies, purification and a portion of administration and operational maintenance: 2% charge added to water rate or as indicated by consumer price index.

Service Fee--$25.00 Charge for each request by a member to turn a meter off or on.

Leak charge-$140.00 Search for water leakage during the winter months. This is a charge for leak on customer side of the meter.

New Meter Installation Fee--$10,000 Charge for a new service connection including a meter an all costs incurred to connect up to 50' from the chosen service main to the member's property line. Any additional footage to the property line to be charged on an actual cost basis.

Certificate Transfer Fee--$150.00 + 25.00 per share or minimum of $175.00. Charge to transfer a membership certificate when the ownership of a property is transferred. (An additional $25.00 per water share is mandated by the Bylaws.) Covers costs related to transfer of membership, including administrative correspondence with escrow offices, meter reading billing, printing and phone calls.

Late Payment Penalty-1.5% compounded per month. Flush credits will be allowed only if Operations is notified for approval prior to flushing. The gallons flushed will be recorded by Operations for credit. Waste and irrigation is strictly forbidden. Irrigation is defined as watering vegetation or settling dust by sprinklers, soakers automatic devices or unattended hoses connected to water company system. Costs incurred in locating the violation, plus an appropriate fine will be assessed for each violation.

Personal shut off valve---customer side of water meter-$75.00. Ball valve installed for members use.