trol program helped curb expenses, while Continuous Improvement Process (CIP) teams made up of employ- ees throughout the company worked on projects that increased efficiency.For example, one team realized company-wide savings by changing the way we handle customers’ returned mail; another team conducted energy use audits and developed a plan to reduce elec- tricity costs; and yet another increased revenue by revising the process for metering new construction projects. These efforts, combined with numerous appli- cations we filed for rate relief with the California Public Utilities Commission, should reduce expenses and increase revenues in 2002. Expanding Our First-Class Infrastructure A water utility that main- tains a first-class infrastructure is like a property owner who invests time, effort, and resources into upgrading his or her home to increase the property’s value and reduce the costs associated with unexpected repairs. We are diligent about maintaining and upgrad- ing our infrastructure. That means our invested capi- tal grows each year along with the value of our water systems and we spend less money on unanticipated repairs. In 2001, we completed more than 500 capital projects, including a new treatment plant in our Kern River Valley District, a new water storage tank in our 7 6 Providing Excellent Service Ask anyone at our company what we do, whether it is a member of the water quality team working in front of a microscope, a water service pro- fessional replacing a broken pipeline, or a customer service representative answering the telephone, and  he or she will tell you that we are in the business of providing excellent service. That is why we have an employee team dedicated to measuring our ability to satisfy our customers. Recently, this team conducted  a series of surveys to measure our ability to meet  customers’ needs the first time they called us. Why? Because our research indicated that customers want “quick and easy” telephone service, and that satisfac- tion levels drop 50% every time a customer is not sat- isfied on the first contact. The most recent survey indicated that 95% of our customers were satisfied  on the first call. East Los Angeles District, and a new well in our King City District. We also broke ground on a large treatment plant in Bakersfield and expanded our infrastructure to serve 6,100 new customers. To ensure that we can continue to provide our customers with a reliable water supply that meets increasingly strict water quality standards, we will invest more in our infrastructure  in 2002 than ever before.