Potter Valley Hydroelectric Project

PG&E owns and operates the Potter Valley Hydroelectric Project in northern California. The Federal Energy Regulatory Commission (FERC) issued the project's license in 1983. The project is located in Lake and Mendocino counties. It's within the upper Eel River and Russian River watersheds.

The project consists of several types of facilities. These include dams, recreation sites, and a powerhouse that was built to generate electricity. It also has a water diversion system and fish facilities. Some of these facilities are more than 100 years old. They occupy PG&E-owned, private, and federal lands.

In 2019, PG&E decided not to apply for a new FERC license. We decided running the project was too costly for our customers.

In early 2022, FERC issued a public notice of interest. The notice was to see if any other groups were interested in taking over operation of the project. FERC received no responses from interested third parties.

In late 2022, FERC required PG&E to plan for surrender of the project. PG&E filed a final License Surrender Application and Decommissioning Plan (LSA) on July 25, 2025. FERC must approve the application before any decommission starts. The full process will take several years.

PG&E is giving up the federal license that allows it to operate the Potter Valley Hydroelectric Project. This process is called a license surrender. In 2019, PG&E decided not to apply for a new FERC license. We decided it was too costly for our customers. PG&E reviewed other options, including whether a third party might take it over. When no third party applied for a license, FERC required PG&E to begin the license surrender process.

PG&E filed a final LSA and decommissioning plan on July 25, 2025. FERC must approve the application before any decommission starts.

What does decommissioning mean? What is a decommissioning plan?

Decommissioning means safely retiring energy facilities. For the Potter Valley Hydroelectric Project, this may include:

• Removing or changing equipment and structures
• Leaving some structures in place—if they can remain safely
• Restoring land and waterways impacted by decommissioning

A decommissioning plan explains how this work would be done safely. PG&E developed this plan with input from:

• Agencies
• Tribes
• Other stakeholders

License Surrender Application

The final LSA will include:

• Reason for surrender application and a copy of the existing license and amendments
• Description of existing project facilities and proposed decommissioning plan
• Environmental report assessing potential decommissioning impacts to environmental resources
• Proposed measures addressing potential construction impacts

PG&E is committed to a responsible and respectful decommissioning process, guided by:

• Compliance with federal and state regulations
• Environmental assessments
• Transparent communication with stakeholders
• Ongoing monitoring and safety planning
• A focus on long-term benefits for the environment and the community

Decommissioning process

There are several ways Potter Valley Hydroelectric Project structures can be decommissioned.

Decommissioning Plan

• Removal of dam
• Removal of facilities
• Restoration of lands
• Restoration of inundation zone

The decommissioning plan will consider:

• Public safety
• Environmental and cultural resources

Non-project use of project lands application

Along with the LSA, PG&E submitted an application for Non-Project Use of Project lands to FERC. This allows for modification of existing project works on land within the FERC project boundary for construction of the New Eel-Russian Facility. Construction of the New Eel-Russian Facility would allow for water diversion from the Eel River through the Project's existing water diversion system to the Russian River Watershed.

The new Eel-Russian Facility would be constructed by the Eel-Russian Project Authority, which consists of the County of Sonoma, Sonoma County Water Agency, and the Mendocino County Inland Water and Power Commission. Learn about the Eel-Russian Project Authority.

The license surrender process for the Potter Valley Hydroelectric Project started in 2022. PG&E filed a final LSA and decommissioning plan on July 25, 2025. PG&E has a target to file management plans with FERC in 2027.

PG&E is committed to providing you with clear communication. On August 11, 2025 PG&E held a town hall. The presentation of this event, along with the transcript and recording are available below.

• Potter Valley Project License Surrender Application Public Presentation Recording
• Potter Valley Project License Surrender Application Public Presentation (PDF) - coming soon
• Potter Valley Project License Surrender Application Public Presentation Transcript (PDF)

Public involvement will occur in defined public review periods. They are a part of the federal and state regulatory processes for the project. FERC and other regulators will solicit public feedback at these defined phases. These phases are designed to provide opportunities for public input at specific points. It ensures that technical, safety, and environmental decisions follow established standards.

Your voice and support matter to us. Email PVSurrender@pge.com to be added to the project mailing list. You'll receive updates and learn about future engagement opportunities.