1. Kilarc-Cow Creek Hydroelectric Project Decommissioning FERC Project No. 606 Public Meeting May 15, 2007, 6-9 pm Millville Grange Palo Cedro, CA

2. 2 Agenda Introductions/Review Agenda Update on Decommissioning Process Decommissioning Agreement Review of Public Concerns –Public Comment and Questions Resource Agency Presentation –Public Comment and Questions

3. 3 Meeting Process

4. 4 Update on Decommissioning Process Summary of March 15 th Public Meeting Proposed Schedule for Decommissioning Process Opportunities for Public Input

5. 5 Summary of March 15 th Public Meeting PG&E made a decision not to relicense the Kilarc- Cow Creek Project Decommissioning is a FERC regulatory process PG&E is required by FERC to begin to prepare a License Surrender Application PG&E and stakeholders signed a “Project Agreement” on decommissioning in March 2005 PG&E is committed to an open public process

6. 6 Proposed Schedule for Decommissioning Process

7. 7 Opportunities for Public Input Public Meetings –Informational –Receive Comments –Evening Technical Meetings –Resource Agencies –NGOS and Interested Public –Regulatory Requirements –Days –Regularly

8. 8 Opportunities for Public Input Website Written Comments

9. 9 Opportunities for Public Input Point of Contact: Stacy Evans Address: Pacific Gas and Electric Company Mail Code N11D PO Box 770000 San Francisco, CA 94117-0001 Phone: 415-973-4731

10. 10 Opportunities for Public Input Technical Meeting Tomorrow, May 16 th, 1 pm - 4 pm Red Lion Inn 1830 Hilltop Drive Redding, CA Next Public Meeting will be scheduled for Fall 2007, to discuss results from technical resource analysis

11. 11 Project Agreement on Decommissioning Signed March 2005 with State and Federal resource agencies and other Stakeholders Framework for development of Decommissioning Plan and Surrender Application Specifically on Decommissioning the Agreement stated: –Upon decommissioning, PG&E intends to transfer its water rights to a resource agency or other entity to protect, preserve, and/or enhance aquatic resources –PG&E will work collaboratively to develop a decommissioning plan –Identified “Subjects and Desired Conditions” that would be addressed if the Project was decommissioned

12. 12 Subjects and Desired Conditions Establishes “Desired Conditions” or “Goals” for all aspects of the Project following Decommissioning including: –Disposition of Project Structures –Water Rights –Public Recreation Opportunities

13. 13 Project Structures – Desired Conditions Diversion Structures: Safe, timely, and effective passage up/downstream for fish Canals: Stable drainage of runoff to natural waterways Forebays: Appropriate fish and wildlife rescue/salvage prior to deconstruction activities Penstocks: Safety issues address public and wildlife Powerhouses: Historical/cultural values preserved, and preserve options for future reuse of powerhouses (non-power production)

14. 14 Water Rights – Desired Conditions PG&E appropriative water rights are protected and used to preserve or enhance aquatic resources Other water right holders rights are preserved All other water rights preserved subject to the law Water rights are enforceable and permanent Maintain aquatic habitat values downstream of Hooten Gulch (Cow Creek PH spill channel)

15. 15 Public Recreation Opportunities – Desired Conditions Achieve balance between lost recreation opportunities at Kilarc forebay with other recreation opportunities (e.g., fishing and picnicking) Recreation stream fisheries opportunities enhanced Public access available to recreational opportunities

16. 16 Next Steps Define the actions necessary to achieve the “Desired Conditions” Will Require: –Numerous technical meetings to identify the issues and work-out the details –Resource analysis to address potential issues with decommissioning of facilities

17. 17 Review of Public Concerns Summary of concerns from March 15 th Meeting Overview of PG&E water rights on the Kilarc-Cow Creek Project

18. 18 Summary of Public Concerns from March 15 th Meeting Concern or Question from Public Action by PG&E March 15 th meeting date was not communicated early enough For May 15 th meeting, meeting notice sent via US mail one month prior to meeting date PG&E commits to send meeting notices via US Mail for Public Meetings at least 2 weeks prior to meeting date March 15 th meeting date not communicated broadly enough For May 15 th meeting, sent meeting notice to March 15th participants Posted notice in East Valley Times, Redding Record Searchlight and Whitmore PG&E commits to posting in local newspapers prior to next public meeting Potential impact of Project decommissioning on water rights holders PG&E will present overview of PG&E’s water rights tonight

19. 19 Summary of Public Concerns from March 15 th Meeting Concern or Question from PublicAction by PG&E Overlap with Land Conservation Commitment and Land Stewardship Council PG&E will commit to communicating to Land Stewardship council Loss of recreational resource and potential environmental impacts after decommissioning of Kilarc Forebay PG&E will commit to communicate concerns to technical group Potential impact to fire response capabilities after Decommissioning of Kilarc Forebay PG&E will commit to communicate concerns to technical group Powerhouses are historical buildingsPG&E will commit to communicate concerns to technical group Potential impact to downstream wells after decommissioning of Kilarc Forebay PG&E will commit to discuss issue with potentially affected party

20. 20 Overview of PG&E Water Rights on the Kilarc-Cow Creek Project

21. 21 Public Comment and Questions

22. 22 Resource Agency Presentation

23. 23 Next Steps Review existing information from relicensing Identify additional information needs for Decommissioning Plan Begin developing Decommissioning Plan

24. 24 Public Comment and Questions Input on Issues Questions about Water Rights Questions about Resource Agency Presentation

25. 25 Project Area