the Potter Valley Project
When fully operational, the Potter Valley Project provides:
62,500 acre-feet of water each year to the Russian River (less than 2% of Eel River flows).
Water for 650,000+ people in Lake, Mendocino, Sonoma, and North Marin Counties.
Groundwater recharge that sustains Lake Pillsbury communities, farms and local economies.
Critical Firefighting water reserves for wildfire suppression (aerial and ground).
Fish and wildlife habitat around Lake Pillsbury and along the Eel and Russian Rivers.
Clean power for 2,000 homes.
Lake-based recreation for Lake Pillsbury communities and thousands of visitors to the Mendocino National Forest.
current Status
PG&E wishes to divest itself of the Potter Valley Project, claiming that it is no longer profitable. On July 25, 2025, PG&E filed the Final Application to Surrender the Potter Valley Project License with the Federal Energy Regulatory Commission (FERC).
PG&E requests FERC approval for:
1. License Surrender and Decommissioning (SA)
Decommission and remove Scott Dam and all associated facilities and features.
Remove certain Project recreational facilities (campgrounds, day-use areas, kiosks, and boat ramps) and restore U.S. Forest Service and PG&E lands.
Decommission and remove Cape Horn Dam and its facilities, except those needed for the proposed New Eel-Russian Facility (NERF).
Restore inundation zones of Lake Pillsbury and Van Arsdale Reservoir, including riparian, wetland, and upland areas affected by decommissioning.
Remove Project lands and facilities necessary for NERF from the FERC license once Cape Horn Dam decommissioning and NERF construction are complete.
2. Non-Project Use of Project Lands (NPUPL)
PG&E also requests FERC approval to allow the Eel-Russian Project Authority (ERPA) to:
Construct and operate the New Eel-Russian Facility (NERF), which will continue diversions from the Eel River to the Russian River via the existing tunnel system.
FERC will soon open a public comment period. PG&E says removal unlikely to begin before 2028.
How We Got Here
2019 – PG&E bankruptcy ends re-licensing efforts.
2020 – Two-Basin Partnership recommends removing Scott Dam. Lake County (home of Lake Pillsbury) is excluded from deliberations.
2022 – PG&E’s license expires; FERC authorizes continued operations until a final decision.
2025 – PG&E files Final Surrender Application
If no agency or entity steps up to take over the Potter Valley Project, Scott Dam and Cape Horn Dam will be removed and a water supply resource that has served our region for over 100 years will be gone forever.
