How to resolve AdBlock issue? LAKE COUNTY, Calif. — There was another development on Monday in the county of Lake’s ongoing effort to push back against Pacific Gas and Electric’s effort to remove the dams in the Potter Valley Project, including the Scott Dam that forms Lake Pillsbury, a plan the Board of Supervisors chair called “reckless.”
County officials issued a Monday statement that challenged PG&E’s recent assertions that a reason for decommissioning and removing the project was due to seismic issues.
The Potter Valley Project, which PG&E has owned since 1930, is located in Lake and Mendocino counties.
The project consists of the Scott Dam and the Cape Horn Dam, both of which are located on the upper main stem of the Eel River, as well as the Potter Valley powerhouse, the 80,000-acre-foot Lake Pillsbury in Lake County, the Van Arsdale Reservoir, a fish passage structure and salmon and steelhead counting station at the Cape Horn Dam, and and 5,600 acres of land.
The Scott Dam diverts water from the Eel River to the Russian River, which county officials said sustains agriculture, contains critical water for fire suppression, aids local economies
and provides water supplies to property owners from Mendocino to Marin counties.
In 2017, PG&E announced it would auction off the project the following year, and since then the project has moved forward over the objections of the Lake County government and the Lake Pillsbury community.
In that time, PG&E has gathered allies for the decommissioning around the North Coast, including counties, cities and tribes in line to get water and monetary benefits from a “two basin solution,” a plan that includes adding new diversions and increasing storage elsewhere, such as at the Coyote Dam at Lake Mendocino.
PG&E’s justifications for abandoning the project have included its age and reported financial losses. More recently, the company has claimed seismic risk is a reason for walking away from the dam’s maintenance.
Lake County officials pointed out that, despite those reported drawbacks to the project, PG&E has still noted water storage and diversion benefits of the Potter Valley Project within its own company reports.
Then, on Monday, the county of Lake said that newly obtained reports from the California Department of Water Resources’ Division of Safety of Dams show the Potter Valley dams slated for removal are, “suitable for continued safe and reliable operation” — despite claims by PG&E and supporters of the decommissioning plan to the contrary.
The reports are now published on a dedicated page on the county of Lake website.
County officials said they obtained the state reports from 2023 “after repeated attempts for their public disclosure.”
The county also noted in its statement that, “For years, proponents of the dam removal effort have described the Potter Valley project as a seismic risk — citing safety concerns as justification for their removal. In the report, analysis indicates, that per ‘known information and visual inspection, the dam, reservoir and appurtenances are judged safe for continued use.’”
The county’s statement cited a study conducted by the University of California, Davis that found losing the Potter Valley Project diversion — which encompasses both Scott and Cape Horn dams — would reduce the reliability of Lake Mendocino’s water storage and would affect Lake Pillsbury.
Water from Lake Pillsbury was used to combat the 2018 Mendocino Complex fire and the 2020 August Complex fire, a point made repeatedly during a May town hall on the Potter Valley Project situation.
“For years, we’ve heard about safety issues surrounding the dam; today, armed with facts and data from the State’s dam safety authority, those allegations are in serious doubt,” said Board of Supervisors Chair Eddie Crandell. “PG&E’s decommissioning plan is reckless and puts our county at risk. We will continue to work with regional leaders and partners to reach resolution without negatively affecting our communities and residents.”
The county referenced findings in the state dam safety surveillance monitoring report and visual inspections by PG&E, the Federal Energy Regulatory Commission and the Division of Safety of Dams – Department of Water Resources that concluded that “the dam is judged to be performing satisfactorily.”
Those documents also quote an expert review by the Division of Safety of Dams that stated, “The project is suitable for continued safe and reliable operation. The dam surveillance and monitoring program is adequate.”
Earlier this year, the Board of Supervisors voted to write to state and federal officials about their concerns about the removal of the Scott Dam and Lake Pillsbury.
“PG&E’s proposed decommissioning conflicts with state and federal priorities to increase water supply and storage capacity, especially in fire-prone regions, in response to the Los Angeles fires earlier this year,” the county’s Monday statement said.
PG&E submitted its surrender application and decommissioning plan for the Potter Valley Project with the Federal Energy Regulatory Commission, or FERC, on July 25.
FERC is now in the process of reviewing the application, which can take up to two years, county officials said.
PG&E responds to county
Lake County News asked PG&E for a response to the county’s statements.
On Monday evening, PG&E offered the following:
“PG&E made the challenging and irreversible decision not to relicense the Potter Valley Project as it was uneconomic for our customers. Over time, PVP became non-economic for PG&E’s customers as the cost of generating has exceeded the cost of alternative sources of renewable power on the open market.
“Realizing that agriculture and communities had come to rely upon the water, nearly 10 years ago, PG&E reached out to stakeholders and suggested they take over the project. When no one did, PG&E issued a request for proposals from interested parties such as other hydropower producers. No one sought ownership then.
“In 2019, PG&E withdrew its application for a new FERC license. The decision to cease relicensing of the project is not one PG&E took lightly, as we recognize the important regional and state significance, particularly around water supply, recreation, and the project’s effects on the Eel and Russian Rivers.
“We have always said the dams are safe, otherwise we would not be operating them. In 2023 PG&E completed a study showing the seismic concerns at Scott Dam were greater than previously understood and required mitigation to meet PG&E’s safety standards and those of our dam safety regulators. As mitigation, PG&E kept the maximum reservoir elevation at least 10 feet below the full elevation. Well before the updated analyses, PG&E made the decision to decommission the Potter Valley Project as it is uneconomical. The updated analysis is not the driver of decommissioning, despite what some claim,” the statement said.
New comment period to be announced
On Monday, the county said that, following PG&E’s submission of its July FERC filing, FERC was expected to announce a new 30-day period allowing the public to comment on proposed action for the Potter Valley Project.
The county said that no new public comment period has so far been established.
In response, PG&E said, “FERC will announce when the public comment period will open and we do not know when that will be determined.”
The company said FERC will notify subscribers to the P-77 Docket when the public comment period opens. Subscribe here.
To be considered, comments must be submitted directly to FERC.
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