Federal regulators signal support for Pacific Gas and Electric's bid to decommission Eel River dams

The federal agency responsible for approving Pacific Gas & Electric Co.'s bid to decommission two Eel River dams and a downstream hydroelectric powerplant has signaled its support for the utility's plans, despite last-ditch efforts by those who oppose the teardown to keep the waterworks in Lake and Mendocino counties intact.

In a May 22 scoping document that provides an overview of proposed actions and potential resource issues, the Federal Energy Regulatory Commission noted it "proposed to eliminate … alternatives" to full decommissioning, including a proposed takeover of the dams either by the federal government or other public agency.

Federal takeover of two PG&E dams and shuttered powerplant, known as the Potter Valley Project, would require congressional approval. FERC said "there is currently no evidence" showing that such a takeover should be recommended to Congress. Additionally, no federal agency has expressed interest in operating the project, FERC said.

Since November 2025, community members that benefit from Eel River flows diverted by the project, including Potter Valley farmers and northern Sonoma County residents, have made appeals to the Trump administration to save the dams.

The Lake County Board of Supervisors has expressed concern about losing revenue from reduced property values around Lake Pillsbury, the reservoir behind the larger of the two dams, as well as a potential source of water for wildfire suppression. The county has also appealed to the Trump administration.

"We don't know what the footprint of the lake will be like," Patrick Sullivan, Lake County treasurer-tax collector, told The Press Democrat last April. "But this is a monumental project. Nothing to this scale has been done before."

While entreaties to branches of the federal government brought more widespread attention to the project, they have not solidified an interested federal manager.

The Department of the Interior has gone on record with The Press Democrat to say it "does not have and is not seeking authority from Congress to own or operate the Potter Valley Project," according to Peter Soeth, acting chief of public affairs for the Bureau of Reclamation, which oversees many dams and water projects across the American West.

U.S. Department of Agriculture Secretary Brooke Rollins has worked to find a manager for the dams, connecting with the Elsinore Valley Municipal Water District, a Southern California agency which has expressed interest in potentially taking over the dams. The district, located in Riverside County nearly 600 miles to the south, has not made its plans public, though it has signed a letter of intent with the nearby San Gorgonio Pass Water Agency, a State Water Project provider.

Notably, the Eel River system is not linked to the State Water Project, the vast system of reservoirs and aqueducts that runs through the Central Valley, serving farms and the state's largest cities.

Both Riverside County agencies indicated they see the Potter Valley Project as an opportunity to diversify their water supply portfolios. An Elsinore Valley consultant's report indicated Eel River water rights have a "market value in the half-billion to nearly billion dollar range."

Sylvia Ornelas, public information officer with Elsinore Valley, said FERC's recommendation in its scoping document does not alter the agency's plans.

"Nothing has changed on our end yet," Ornelas told The Press Democrat. "We are still in the exploratory phase which is taking quite some time to go through documents. And we are still waiting on more items to come in."

Elsinore Valley is seeking more information on the project from the region's dominant wholesaler, Sonoma Water, which has helped spearhead discussions in recent years geared to continuing Eel River diversions into the upper Russian River in a post-dam future.

Elsinore Valley has yet to submit a proposal to PG&E, according to FERC's scoping document. "Thus, we do not consider a non-power license a reasonable alternative to surrendering and decommissioning," the federal agency stated.

While many dam removal opponents would like to keep the status quo, FERC also wrote that doing nothing - or maintaining the dams in their current form - would not be "a reasonable alternative," as PG&E has determined the project too costly to operate. Keeping the dams up would require PG&E to apply for a new hydropower license - a process that would be both cost-prohibitive and create "other challenging and financial operational circumstances," FERC said.

The scoping document comes as welcome news to some groups in the local coalition that worked with PG&E to ensure water diversions to Potter Valley and northern Sonoma County continue once the dams are gone.

Charlie Schneider, connectivity program manager with CalTrout, said he found it interesting that FERC "went out of their way to explain away other" alternatives.

"The only proposal that's on the table is what PG&E has proposed to FERC. It's to take out the dams and do … the diversions," Schneider said.

What is the two-basin solution?

In February 2025, representatives from three counties, the Round Valley Indian Tribes and two environmental groups reached an agreement creating a framework for future water diversions from the Eel River into the Russian River once PG&E receives approval for decommissioning of the Potter Valley Hydroelectric Project, comprised of two dams in Lake and Mendocino counties and a shuttered 118-year-old powerhouse.

Continuing the diversions will require a new diversion facility to be built once the lower Cape Horn Dam is removed. The new facility is to be managed by the Eel-Russian Project Authority, a joint powers authority that includes Sonoma County, Sonoma Water and the Mendocino County Inland Water and Power Commission.

The facility would allow water to flow from the Eel River to the East Fork of the Russian River, where it would travel into Lake Mendocino. Unlike diversions today, most of the diversions under the new agreement would occur when the Eel River has enough water, typically in winter, to accommodate federally-protected salmon and steelhead trout.

Under the agreement, Russian River users would also pay between $750,000 to $1 million into an Eel River restoration fund to pay for fish recovery and environmental restoration efforts along the Eel River.

Additionally, PG&E's water rights for the diverted flows, which it has held for more than 100 years, would be transferred to the Round Valley Indian Tribes. The tribes would collect $1 million a year from Sonoma and Mendocino county users in exchange for the diverted flows.

Signatories of the agreement included Sonoma Water, the Mendocino County Inland Water and Power Commission, Humboldt County, the Round Valley Indian Tribes, Trout Unlimited, California Trout and the California Department of Fish and Wildlife.

Other members of the so-called two-basin solution pact also expressed their relief.

"The bottom line on this is it's a positive step for all the in-depth planning that has occurred to ensure the diversion continues between the Eel and Russian rivers," said David Manning, executive director of the Eel-Russian Project Authority and assistant manager for Sonoma Water.

"We worked very hard over many years with our partners and PG&E to ensure that PG&E's application included our ability to continue to divert water through NERF," Janet Pauli, Chair of the Mendocino Inland Water Power Commission, said in a press release. "Everyone had to drive toward a common vision for a solution for both basins. It was hard work - but it was good work."

Opponents of dam removal, including Cloverdale Vice Mayor Todd Lands, a candidate for 4th District supervisor, and Carol Cinquini, chair of the Lake Pillsbury Alliance, did not return requests for comment.

While FERC laid out its reasoning, it also invited public comment on the scoping document, adding that "all issues raised" will be reviewed before any final decision is made.

Members of the public will have two opportunities to comment in person. FERC has two scoping meetings planned for next month at the Ukiah Valley Conference Center. Individuals who cannot attend the meetings can submit their comments in writing, at either https://ferconline.ferc.gov/QuickComment.aspx or mailed to Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426.

All scoping document comments are due by July 24. FERC will give equal consideration to written and oral comments.

PG&E's final plans for decommissioning are expected in July 2027.

Amie Windsor is the Community Journalism Team Lead with The Press Democrat. She can be reached at amie.windsor@pressdemocrat.com or 707-521-5218.

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