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This paper present an initial effort of collaborating hybrid bacteria foraging oriented particle swarm optimization with linear quadratic regulator (LQR) design for automatic generation control (AGC) of power delivery system having power generation through hydro turbines in interconnected control areas to match the frequency variations as well as tie-power interchange to the well planned value after sudden load disturbance in interconnected system. The enactment of LQR highly depend upon the selection of state cost weighing matrix (Q) and control cost weighting matrix (R) in order to achieve the best control efforts. However, most of the researchers assume the structure of Q and R to be an identity and hence the LQR control action was restricted within certain range. Hence, an early attempt is made to compute the structure of Q and R for LQR through hybrid bacteria foraging oriented PSO for AGC of hydro system and application results are computed for various cases considering error evaluated and graphical AGC responses for step load alteration, influence of AGC non-linearities on the output of AGC, parametric alterations and random load alteration to show the efficacy as well as robustness of the present control design. [ABSTRACT FROM AUTHOR]