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Today. Public speaker . Jeff brooks. This is sort of a related item very important and coming up as an imminent issue filling of the final seat on the sf puc by appointment. That final seat is the seat that is required to have a person that has ratepayer or consumer advocacy experience. And i think it would be, im pretty much directing this at lafco. I have a feeling this wont be entirely wrapped up by the end of february and it might be a good idea to in case its not resolved why it to schedule an a discussion of proposition e in 2008 whiches the proposition that gave the board of supervisors power to vote on this. The vote was loud and clear in proposition 8 that we want the Public Utilities commissioners. For example commissioner vietor has clear environmental just justice experience. I have to put on my consumer activist hat we have to do more digging. We may apply for a different sfpuc. We must honor that ballot measure and ....
Organization and rate payers money. In 2012 a couple years ago we received the authorization to refund up to 500 million in bonds from the board of supervisors. We used a little bit of that in that year, 2012, so we are coming forward to you today to use the rest of that existing authorization. So what were proposing is to request from you an approval of to refund up to 450 Million Dollars of outstanding bonds. We look forward to bringing that to the market probably next month in march. They will be tax exempt bonds and right now were looking at Interest Rates of around 2. 7 percent for those bonds and just to give you a sense what that means, our current bonds are right around 4 1 2 percent so were bringing the 4 1 2 percent bonds down to an average of about 2 1 2 percent. Up to 30 year bonds but the vast majority of the savings that we will recognize will be over the next ....
To continue with our demand reduction to make sure that we keep pace with achieving the 10 percent reduction again this year, which would be a demand of 209 million gallons a day. Again the key to those numbers for us, were ahead of pace to achieve that but we need to work hard to keep there and were working our wholesale customers on different messages to make sure we accomplish that. A couple more statistical slides on up country precipitation. For the month of february the average is about 6 inches and basically out of this last storm we got 3. 9 inches of precipitation, so we got about twothirds of the amount of precipitation we would normally get in february just out of these last storms so thats a good thing. Its early in the month and the chances of a wetter than normal february look promising at this point. In the bay area its about half of what the normal precipitation is for february so it was a good precipitation for february in the bay area as well. On the regulatory front ....
Which would we have to make a decision on, what information would we need to be queued up to more deeply explore those two options . Were developing that information for you now so we hope to come back a couple meetings from now and start having a discussion what it would look like. When you have a discussion about rate structures you need to look at what are all the options available to you and balance that against you just mentioned, theres a belief that theres a conservation rate, a volume metric rate people use less therefore they save more. On the other hand theres a 24 7 cost to doing that with our crews and everything else, so how do you balance the two of those. Were kind of looking at what other people are doing at this point in time. We changed our rate structure or begin to change our rate structure but this is a longterm process, this is not going to happen over the next couple months. So its a discussion we need to have with you. I think the longer term, certainly the righ ....