- PG&E has filed its decommissioning plan with federal regulators.
- The process includes public comment and environmental reviews.
- Plans call for removing two dams to restore fish passage.
- A new diversion facility is proposed to maintain water flows.
Wednesday, August 13, 2025 — Pacific Gas and Electric Company (PG&E) formally filed its Surrender Application and Decommissioning Plan for the Potter Valley Project
with the Federal Energy Regulatory Commission (FERC) on July 25. The filing follows the release of two draft versions for public review and marks the start of a formal regulatory process.
FERC will now open a public comment period and conduct a review under the National Environmental Policy Act. The California State Water Resources Control Board will carry out a parallel review under the California Environmental Quality Act. Both processes will provide opportunities for public participation.
PG&E will also begin developing detailed management and construction plans to guide the decommissioning work. The company has committed to maintaining current operations in compliance with all federal requirements until FERC terminates the license.
Dam Removals and Fish Habitat Restoration.
The plan calls for removing Cape Horn Dam and Scott Dam. Scott Dam currently blocks salmon and steelhead from reaching habitat in the Upper Eel River watershed. Removal of both structures is expected to restore access for migratory fish.
Included in the proposal is a request for FERC to authorize the Eel-Russian Project Authority (ERPA) to build a New Eel-Russian Facility at the Cape Horn Dam site. This facility would continue delivering water from the Eel River to the Russian River watershed after the dams are removed.
While PG&E will coordinate with ERPA, the authority will be responsible for constructing, operating, and maintaining the new diversion facility. Coordination is intended to ensure the project does not delay the decommissioning schedule.
A Century of Service.
Located in Mendocino and Lake counties, the Potter Valley Project has operated for more than 100 years, providing renewable power and transferring water from the Eel River to agricultural areas and communities along the Russian River. Key facilities include Cape Horn Dam and Van Arsdale Reservoir, built in 1908, and Scott Dam and Lake Pillsbury, built in 1922.
Water released from Lake Pillsbury flows into the Eel River, is captured at Van Arsdale Reservoir, and then diverted to the Potter Valley Powerhouse. After power generation, water is discharged into the East Branch Russian River or used for local irrigation before eventually being stored in Lake Mendocino.
Background and Path Forward.
In 2019, PG&E announced it would not seek a new operating license for the project, citing costs and aging infrastructure. Efforts to find a new operator were unsuccessful, leading FERC to direct PG&E to submit a decommissioning plan.
The ERPA—a joint powers authority involving Sonoma County, the Sonoma County Water Agency, the Mendocino County Inland Water and Power Commission, and the Round Valley Indian Tribes—was formed to work with PG&E on the transition.
FERC will determine the schedule for the public comment period and distribute updates through its eSubscription system.
Top Image:Â Scott Dam, via PG&E news release.
