The lake, which is in Butte County, is at its lowest level since September 1977.
READ MORE: California reservoir levels reach record lows not seen since 1977, state says
It was just four and a half years ago that water from Lake Oroville overflowed the dam, damaging its spillways.
Department of Water Resources (DWR) Director Karla Nemeth released a statement, saying in part, "DWR State Water Project operations managers have taken the Hyatt Powerplant at Lake Oroville offline due to falling lake levels. This is the first time Hyatt Powerplant has gone offline as a result of low lake levels."
Nemeth went on to say California has been bracing for this moment "and steps have been taken in anticipation of the loss of power generation."
"This is just one of many unprecedented impacts we are experiencing in California as a result of our climate-induced drought," Nemeth said.
SEE ALSO: More of Bay Area moves into 'exceptional' drought as conditions worsen
She says dramatically reduced levels of water runoff this past spring have contributed to the "record-low" reservoir levels.
As we face another dry year, Nemeth is calling on Californians to take action against falling reservoir levels by reducing water usage by 15 percent.
"We are all in this together," she said.
WATCH: Wondering how to reduce water use by 15%? Here are some helpful tips
Go here for the latest updates and information about the California drought.