The following table summarizes the activity for the stock option plans: 14 15 For those financial instruments for which it is practicable to estimate a fair value, the following methods and assumptions were used. For cash equivalents, the carrying amount approximates fair value because of the short-term maturity of the instruments.The fair value of the Company’s long-term debt is estimated at $306,140,000 as of December 31, 2002, and $214,046,000 as of December 31, 2001, using a discounted cash flow analysis, based on the current rates available to the Company for debt of similar maturi- ties.The fair value of advances for construction contracts is estimated at $34,000,000 as of December 31, 2002 and $32,000,000 as of December 31, 2001, based on data provided by brokers. The Company has long-term contracts with two wholesale water suppliers that require the Company to purchase minimum annual water quantities. Purchases are priced at the suppliers’ then current wholesale water rate.The Company operates to purchase sufficient water to equal or exceed the minimum quantities under both contracts.The total paid under the contracts was $6,816,000 in 2002, $6,208,000 in 2001 and $5,400,000 in 2000.The estimated payments under the contracts for the five years 2003 through 2007 are $8,000,000, $8,300,000, $8,600,000, $9,000,000 and $9,300,000. The water supply contract with Stockton East Water District (SEWD) requires a fixed, annual payment and does not vary during the year with the quantity of water delivered by the district. Because of the fixed price arrangement, the Company operates to receive as much water as possible from SEWD in order to minimize the cost of operating Company-owned wells used to supplement SEWD deliveries.The total paid under the contract was $2,967,000 in 2002, $3,496,000 in 2001 and $3,269,000 in 2000. Pricing under the contract varies annually. For 2003, the estimated payment is $3,779,000. CALIFORNIA WATER SERVICE GROUP 52 FAIR VALUE OF FINANCIAL INSTRUMENTS COMMITMENTS AND CONTINGENCIES Commitments The Company leases office facilities in many of its operating districts.The total paid and charged to operations for such leases was $800,000 in 2002, $720,000 in 2001 and $760,000 in 2000. Payments under the lease commitments over the succeeding five years 2003 through 2007 are esti- mated to be $833,000, $893,000, $941,000, $943,000 and $891,000. Over the 20-year period through 2023, payments under lease commitments, assuming renewal of existing or replacement leases, is estimated to be $21,000,000. Weighted Weighted Weighted Average Average Average Exercise Remaining Options Fair Shares Price Contractual Life Exercisable Value Outstanding at December 31, 1999 52,357 $23.45 – 19,092 – Granted 53,500 23.06 $3.74 Exercised  (52,357) 23.45 Outstanding at December 31, 2000 53,500 23.06 9.5 – – Granted 58,000 25.94 5.65 Cancelled (12,000) 24.50 Outstanding at December 31, 2001 99,500 24.57 8.8 11,875 – Granted 55,000 25.15 4.41 Outstanding at December 31, 2002 154,500 24.77 8.2 36,750 –