Five years after beginning relicensing negotiations, conservation, fishing, and boating organizations won a major victory when, along with federal and state agencies, they signed a historic settlement agreement with the Sacramento Municipal Utility District for the Upper American River and Chili Bar projects. The settlement will:

- Greatly increase minimum flows on all river segments.

- Create pulse flows on the Rubicon River, South Fork Silver Creek, and Gerle Creek.

- Create fish passage and restore channels on Gerle Creek.

- Produce reliable whitewater flows on the South Fork American River and South Fork Silver Creek.

-Improve campgrounds, boat ramps, and other recreational facilities around SMUD reservoirs.

The 7 - 8 percent power loss resulting from the agreement will be made up for by flexible power generation during the summer and the construction of the Iowa Hill Project.

In May 2006, the prognosis for settlement was not good, when SMUD suddenly pulled out of negotiations and river advocates feared they would request a time-consuming and costly "trial-type hearing" challenging resource agency prescriptions. In response, river advocates intensified their activities by producing a report comparing the SMUD proposal to one supported by river advocates and resource agencies, packing SMUD Board meetings, coordinating a letter-writing campaign to the SMUD Board, and prompting regular media coverage. Several months later, Klamath river advocates won a resounding victory in the country's first "trial-type hearing", possibly causing concern amongst utilities about undertaking such endeavors.

Then in November 2006, all the stakeholders agreed in principle about license conditions. This culminated in the signing of the settlement agreement, which will produce substantial environmental and recreational benefits.

A complete article from the SF Bay Area Independent Media Center is at: http://www.indybay.org/newsitems/2007/02/07/18359128.php