The Sacramento Municipal Utility District is proposing to add a new pumped-storage facility to its hydroelectric system on the Upper American River. The facility would include an underground powerhouse built near the edge of Slab Creek Reservoir and a storage reservoir 1,200 feet above Slab Creek Reservoir at Iowa Hill, about three miles north of Camino. SMUD is asking for approval of the new project as part of its application for relicensing of its hydro system by the Federal Energy Regulatory Commission. Its present license expires in 2007. The new facility is projected to produce up to 400 MW of peaking power. Water would be pumped up to the new reservoir when wholesale energy costs are lowest, usually at night, or when there is excess generation. At times of peak demand, water could be released from the hilltop reservoir to flow down through the new powerhouse and generate electricity. According to the muni, the project would not require any dams or diversion of water from exist-ing streams or rivers. However, the project would require extensive environmental review because of its effects on fish and wildlife, particularly from the construction of the proposed upper reservoir. That structure would hold 6,400 acre-feet of water and would cover approximately 100 acres of land. As part of the relicensing process, SMUD is holding a series of public meetings in September for comments on its proposals.