Hi Shareholders,
I hope you all had a great Holiday Season.

The wells production for December 2014 was 3,449,000 gallons which came in 666,000 gallons less than 2013, ending the year with a total water savings of 10,215,000 gallons. Thanks to all for the great effort in conservation. The wells production for January 2015 a bit disappointing at 3,489,000, a little higher than last year at this time, due to the large number of people who came up to celebrate over the 2 week holiday period. The usage for December 2014 was 3,579,000 gallons, 518,000 gallons less than December of 2013, ending the year with a savings of 9,800,000 gallons. January’s usage came in at 3,329,000, about the same as the previous January. January’s daily usage numbers have been the lowest I’ve seen in my 27 years working for the company. Your great conservation efforts, combined with diligent leak detection by our field crew enabled us to provide water for the year from our own source, and not have to ask CCWD for water.

Wells Drawdown
Wells drawdown is the way we measure the water available for pumping in the well, measured in feet above the pump intake. It is the water level above the intake with the pump off. December 2013 high recovery = 75 feet. December 2014 high recovery = 63 feet. This indicates that even though we conserved about 10,000,000 gallons last year, the well is not recovering as quickly as 2013. We still have a few months before the high demand summer season and we expect the level to increase.

We have had some encouraging rain in December, but no rain or snow in January. We will monitor the precipitation and our well recovery in the next few months, but for now we will remain in Stage 2 of the Drought Plan. Over the Holidays, there were a few people who did not shut their water off properly, resulting in loss of water. Typically the house drain was opened, but the shut off valve was not closed, or partially closed, and the water poured out the drain. By the time our crew finds this leak, 5 to 50 thousand gallons could be lost, so please make sure everyone using your cabin knows how to shut off the water before they leave.

Well Exploration
Well #4
Because we only received one bid on the construction of well #4, it will be rebid, and a contractor selected so we can begin construction on the pump station and pipeline.
We expect the work to be completed before the summer demand, and it should add to our source capacity by 50 gallons per minute.

Well #5
Our engineers are working on the pump station and pipeline plans for well #5. We are pushing the project so we can have it operating as soon as possible.

Well CU
The pump test is finished on well CU and we have to decide if we want to add it to our system. We may wait for more data before making a decision.

Well LX
This well is in the pre-drilling stage and is located quite a distance away from our present wells, but close to our transmission line. Negotiations are in the works.

Utica Water and Power Authority has offered to sell us surface water from Hunters Dam in Avery. Our engineers are working on a feasibility study to see if we can do this project and how much it will cost. This is a big project and we are looking into funding for it.

Wholesale Water Agreement with CCWD
Our attorney and I are meeting with the CCWD’ General Manager David Eggerton and Assistant General Manager Larry Diamond on Friday the 13th to discuss an agreement to buy wholesale water from CCWD. David Eggerton is open to selling water to us and we hope to strike an agreement to purchase that will satisfy both parties concerns.

Meter at Well #2 
We recently installed a meter on our well #2. This will make it easier to keep track of the water pumped from that well, and comply with the State regulations regarding well meters.

That’s all for now.
Dave Hicks
General Manager