On February 11, 1957, the Federal Power Commission, predecessor to the Federal Energy Regulatory Commission (FERC), issued a 50-year license, effective February 1, 1957, to DWR to construct and operate the Oroville Facilities, officially, FERC Project No. 2100, as part of the SWP. The license must be renewed to continue beyond 2007. The continuation of the license, which enables power generation by the Oroville Facilities and thus benefits the SWP system as a whole, is of tremendous importance to SWC members.

Constructed at the foot of the Sierra Nevada Mountains in Northern California, the Oroville Facilities are located on the Feather River in Butte County. The Oroville Facilities include boundaries that extend from south of the City of Oroville to reaches of the South Fork, Middle Fork, North Fork and the West Branch of the North Fork of the Feather River.

The principal features of the Oroville Facilities include Oroville Dam and Reservoir, Hyatt Powerplant, Thermalito Powerplant, Thermalito Diversion Dam Powerplant, Thermalito Forebay and Afterbay, and associated recreational and fish and wildlife preservation and enhancement facilities. Oroville Reservoir (also known as Lake Oroville) is the principal water storage facility of the State Water Project (SWP) which conserves and delivers water to over 23 million Californians and 755,000 acres of farmland.

Lake Oroville has a gross capacity of 3,537,577 acre-feet, and is operated for a variety of purposes: water supply, power generation, flood control, recreation, and fishery and wildlife habitat enhancement.

The hydroelectric power plants and other features of the Oroville Facilities have a combined license capacity of approximately 762 megawatts and play a vital role in generating clean sustainable hydroelectric power for the state’s electricity grid.

DWR opted to use FERC’s “Alternative Licensing Procedures” (ALP) process to prepare its license renewal application. DWR used a collaborative process to consult with Federal and State resource agencies, Indian tribes, local governments and special interest groups, non-governmental organizations, and other interested parties. SWC members were active participants in this process, which began in 2000 and resulted in DWR filing a comprehensive Offer of Settlement with the FERC on March 24, 2006. DWR filed the license application with FERC for a major new license for the Oroville Facilities on January 26, 2005.

FERC staff has prepared a Final Environmental Impact Statement (EIS) for the Oroville Facilities, which was released in May 2007.

DWR’s license application and the Settlement Agreement outline its proposal to continue operating the Oroville Facilities. The terms of the Settlement Agreement, which were actively developed and supported by the SWC, include a wide range of measures ranging from fisheries management to recreational facilities construction.

Under the proposed terms of the new license, DWR would implement six programs designed to enhance habitats for coldwater fisheries to benefit the threatened and endangered Central Valley spring-run Chinook salmon and Central Valley steelhead in the Feather River, and warm water fisheries in Lake Oroville. The proposed new license terms include a comprehensive program to monitor water quality and bacteria levels at project waters for the benefit of both fisheries and visitors using the project's swimming areas. Wildlife would be enhanced through proposed measures to manage the Oroville Wildlife Area. The substantial recreational opportunities of the Oroville Facilities would be enhanced and expanded through the implementation of the Recreation Management Plan, which includes upgrades to existing facilities, construction of new facilities, and comprehensive monitoring of recreation use over the term of any license issued for the project. Finally, the proposed terms of the new license include the implementation of a Historic Properties Management Plan and specific measures to address conflicts between recreation use and the protection of cultural resources.

Overall, the measures proposed by DWR and the SWC under the terms of the Settlement Agreement, along with additional measures, would protect and enhance existing water use, water quality, fish and wildlife, land use, aesthetics, recreational, and cultural resources. In addition, the project would continue to provide a large portion of the electricity needed to pump water through the SWP at a lower cost than potential replacement power sources.

All of the measures contained in the new license that will be issued by the FERC will be paid for by the SWC members and, ultimately, by the residents and businesses of their service areas. The SWC are committed to continuance of the important role the Oroville Facilities play in California’s energy and water supply picture.