PG&E Statement on USDA Intervention

Says the costs of continued operation of the project would have been borne by PG&E customers

The following statement was sent to us by PG&E in response to our request for a comment on USDA’s intervention in the Potter Valley Hydroelectric Project decommissioning proceedings being considered by the Federal Energy Regulatory Commission:

PG&E is actively supporting the Eel-Russian Project Authority’s effort to build a water diversion facility which would divert water from the Eel River to the East Branch Russian River, allowing flows to continue after PG&E decommissions the project. PG&E worked for years to find a new owner for the project, but ultimately no third party stepped forward to execute a transaction. PG&E made the difficult decision to stop our relicensing effort of the project, as it was not economical for our customers to continue operating the project. No entity applied to take over the relicensing of the Potter Valley Project during FERC’s window period after PG&E announced it would not relicense the project. The surrender process is lengthy and stakeholders will continue to have an opportunity to engage in the FERC proceeding.

Recognizing that the removal of both Scott and Cape Horn dams is a significant change, as PG&E moves forward with the decommissioning process, the company remains focused on safe operation of the dams, careful planning for their removal, and clear and consistent communication. We will continue to engage with interested stakeholders, including the U.S. Forest Service, Cal Fire, Tribal communities, State and County Farm Bureaus, elected officials and many others.

PG&E expects to see intervenors in the Surrender process. The USDA is often one of the interveners in projects that affect or are on USFS properties.