Surrender of the Potter Valley Hydroelectric Project
Built over 100 years ago, the Potter Valley Project includes dams, reservoirs, and a powerhouse that have historically generated power and diverted water from the Eel River to the Russian River watershed in northern California. This water diversion supported agriculture and communities in several counties, much like many other hydroelectric projects around the state. While salmon and steelhead are able to use a fish ladder to get around the Cape Horn Dam at Potter Valley, the anadromous fish are unable to get past the Scott Dam. As it continued to age, the Potter Valley Project became uneconomic for Pacific Gas & Electric (PG&E). In 2019, PG&E decided to not relicense the project. PG&E plans to remove Cape Horn and Scott Dams and is collaborating with various entities to create a new water diversion facility for ongoing community needs.
PG&E determined that it would be contrary to the best interests of its electric ratepayers to continue relicensing the Project and filed a Notice of Withdrawal of the Notice of Intent (NOI) and Pre-Application Document (PAD) for the Project, both previously filed on April 6, 2017. In response to PG&E’s Notice of Withdrawal, on March 1, 2019, the Federal Energy Regulatory Commission (FERC) issued a Notice Soliciting Applications from any party interested in filing a license application for a new license for the Project, stating that applicants must first file a NOI and PAD. FERC’s solicitation did not result in a viable new applicant, and on May 11, 2022, FERC directed PG&E to provide a plan and schedule for submitting a Surrender Application by July 11, 2022. PG&E’s approved plan and schedule stated that PG&E would file a Surrender Application with FERC within 30 months after FERC approval of the proposed plan and schedule. The FERC approved PG&E’s proposed plan and schedule on July 29, 2022; the deadline for filing of the Draft Surrender Application is January 31, 2025.
The project has historically diverted water from the Eel River to the Russian River watershed, supporting agriculture and communities. Decommissioning will reduce or eliminate these diversions, which could affect water availability for downstream users. More specifically, the project has historically diverted water from the Eel River to the Russian River watershed, supporting agriculture and communities in Mendocino, Sonoma, and northern Marin counties. Decommissioning will reduce or eliminate these diversions, potentially affecting water availability for irrigation and municipal use.
Plans for a new water diversion facility aim to balance environmental restoration with community water needs. However, the construction and operation of this facility could have its own environmental footprint. Plans for a new seasonal diversion facility, the New Eel Russian Facility (NERF), aim to provide some water during wetter months. However, this will leave communities without diverted water during dry summer months, increasing reliance on groundwater storage and conservation measures.