11/31/08 South Feather Power Project (FERC Project No. 2088) PM&E Proposal January 31, 2008 Plumas National Forest, Oroville, CA

21/31/08 Agenda Background FS/CDFG Proposal SFWPA’s Revised Proposal Questions

31/31/08 Background (1 of 2) Application Filed March 2007 –26 PM&E Measures including Flow, Each with Detailed Rationale $32 Million - Capital Costs $31 Million - Generation Loss –Dry WY - 1.4% –Below Normal WY - 1.7% –Above Normal WY - 1.8% –Wet WY - 1.5% Commitment to Continue Collaboration

41/31/08 Background (2 of 2) Agreed to Use Agencies’ Process – SFWPA Concerned Process Relied Heavily on Mimicking Unimpaired Hydrograph ~10 Meetings Through May 2007 At May Meeting –SFWPA Commented that Continuing Agencies’ Process Would Probably Result in Lost Generation of ~15% - Seemed High –SFWPA Asked Agencies to Identify Where They Felt Impacts Occurred and Why Next Meeting took Place on December 19, 2007 – FS/CDFG Proposal

51/31/08 FS/CDFG Proposal (1 of 2) SFWPA Understands FS and CDFG Are OK with SFWPA’s Proposed PM&E’s Except –Use FS/CDFG’s Proposed Minimum Streamflow Regime –Monitor Riparian Vegetation in South Fork and Forbestown Diversion Dam Reaches –Monitor FYLF in Forbestown Diversion and Lost Creek Dam Reaches, and Develop Ramping Rate Requirements –Monitor FYLF in Slate Creek Diversion Dam Reach –Install Fish Screen at Lost Creek Intake - Unless Study Can Demonstrate Entrainment Not Occurring

61/31/08 FS/CDFG Proposal (2 of 2) SFWPA Estimates FS/CDFG’s Proposal Increases Capital Cost by ~50% (~$16 Million) –$500,000 for Adaptive Management –$15,000,000 for Lost Creek Screen –$??? - Ramping Rates, Etc. SFWPA Estimates FS/CDFG’s Proposal Increases Generation Loss by ~400% Compared to Application –Dry WY – 15.6% –Below Normal WY – 8.6% –Above Normal WY – 5.4% –Wet WY – 2.7%

71/31/08 SFWPA’s Proposal Goals –Keep Little Grass Valley Reservoir near Recent Historic Elevations –Balance Enhanced Trout Habitat and Costs, Especially in Dry and Below Normal Water Years –Provide Reasonable Trout Habitat in Lost Creek –Provide Slate Creek Minimum Flows Using Existing Outlet Capacity

81/31/08 Little Grass Valley Reservoir Reservoir Does Not Completely Fill in 14 of 28 Years, Mostly in Dry and Below Normal WYs –Current License, FS/CDFG Proposal, SFWPA Proposal By July 1 (In Years Where Reservoir Does Not Fill): –FS/CDFG’s Proposal - Reduction in Historic Elevation of feet (Typically ~6 ft) –SFWPA’s Proposal – Reduction in Historic Elevation of feet (Typically <2 ft)

91/31/08 Balancing Trout Habitat and Costs

101/31/08 Balancing Trout Habitat and Costs

111/31/08 Balancing Trout Habitat and Costs

121/31/08 Balancing Trout Habitat and Costs

131/31/08 Balancing Trout Habitat and Costs

141/31/08 Balancing Trout Habitat and Costs

151/31/08 Lost Creek Trout Habitat % of Maximum Static WUA FS/CDFG SFWPA

161/31/08 Lost Creek Trout Habitat

171/31/08 Slate Creek Outlet FS/CDFG Proposal Calls for 49 cfs Release in March of Each WY Would Occur Mostly in Dry and Below Normal WYs –Dam Frequently Spills in March of Above Normal and Wet WYs –Significant Accretion Occurs in March Existing Slate Creek Diversion Dam Outlet Physically Limited to 40 cfs SFWPA Proposes 40 cfs Minimum Flow Release in March - and Same Releases as FS/CDFG’s Proposal in All Other Months for All WYs Equates to Decrease in Static Weighted Usable Area from 80% to 74% of Maximum WUA in March

181/31/08 SFWPA’s Proposal SFFR - Little Grass Valley Dam FS/CDFG SFWPA

191/31/08 SFWPA’s Proposal SFFR - South Fork Diversion Dam FS/CDFG SFWPA

201/31/08 SFWPA’s Proposal Slate Creek - Slate Creek Diversion Dam FS/CDFG SFWPA

211/31/08 SFWPA’s Proposal Lost Creek - Lost Creek Dam FS/CDFG SFWPA

221/31/08 SFWPA’s Proposal SFFR - Forbestown Diversion Dam FS/CDFG SFWPA

231/31/08 Clarification of Non-Flow Items Lost Creek Diversion Fish Screen FYLF and Riparian Monitoring

241/31/08 Summary SFWPA Wants to Reach Consensus Proposal: –Responsive to FS/CDFG’s Proposal –Keeps Little Grass Valley Reservoir near Recent Historic Elevations –Balances Enhanced Trout Habitat and Costs, Especially in Dry and Below Normal Water Years –Provides Reasonable Trout Habitat in Lost Creek –Provides Slate Creek Minimum Flows Using Existing Outlet Capacity FYLF and Riparian Monitoring

251/31/08 Comparison of Generation Losses SFWPA’s Final License Application FS/CDFG’s Proposal SFWPA’s Proposal Wet-1.2%-2.7%-2.0% Above Normal -1.7%-5.4%-3.4% Below Normal -2.5%-8.6%-5.0% Dry-1.8%-15.6%-10.6%

261/31/08 Comparison of Capital Costs ? Need to Talk

271/31/08 Questions?