April 28, 2025, 9:10 p.m. The story has been updated to clarify that federal funding that is under review is related to the Potter Valley Project and not specifically to the decommissioning of the project, which will be funded by PG&E
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The federal Bureau of Reclamation last week informed the Lake Pillsbury Alliance that it is reviewing funding sources for decommissioning the Potter Valley Project. The alliance represents stakeholders, including members of the Lake County Board of Supervisors, who have
expressed grave concerns about the proposed decommissioning of Scott Dam and the potential draining of Lake Pillsbury.
In a February 25 letter to federal agencies, the supervisors highlighted that Lake Pillsbury's 80,000 acre-foot storage helps prevent the Eel River from running dry, especially during droughts. The Potter Valley Project, of which Scott Dam is a part, also allows for water diversion to the Russian River basin, providing water for agriculture and about 600,000 people. The supervisors argue that the current decommissioning plans are an expensive and irresponsible gamble with regional water supply in an area prone to catastrophic wildfires.
Proponents of the "Two-Basin solution" disagree. At a town hall meeting in Ukiah, Congressman Jarred Huffman said there has been “a firehose of disinformation and conspiracy theories circulating about this.” He clarified that 600,000 people in the North Bay get “some of their water” from the Russian River Basin. “No one is talking about cutting off water to 600,000 people,” he said. “Nobody I know thinks that is a good idea, I certainly don’t.”
Huffman said that the Potter Valley Project currently delivers “a trickle” of water because the project “hasn’t made hydroelectric power or diverted the historic amounts of water in years, and they’re never going to again.” He said the Two Basin solution could increase water availability for everyone.
However, increased water availability for the North Bay will not address Lake Valley concerns about draining Lake Pillsbury.
In their letter, Lake County board supervisors emphasized that the artificial lake is a popular recreation destination and its water has been used to fight fires in the surrounding Mendocino National Forest, which has experienced two of the state's largest wildfires in recent years. They fear that decommissioning the dam and draining the lake would put regional agriculture, fire protection, water availability, and the tourism economy at great risk.
The board pointed to Executive Orders signed by then-President Donald Trump that prioritized water resources and energy supply, suggesting that the dam's decommissioning, which has the potential to generate at least 9.4 megawatts of energy, would contradict these orders.
The value of 9.4 megawatts (MW) of electricity depends on the price per kilowatt-hour (kWh) and the amount of time the electricity is used. Since 1 MW is 1,000 kilowatts, 9.4 MW is equal to 9,400 kWh. Assuming an average electricity rate of 13 cents per kWh, 9.4 MW of electricity would be worth approximately $1,222.
At the town hall, Huffman said PG&E was losing $6 million a year on the project and that did not take into account the money that would need to be set aside to address the seismic risk.
Lake County supervisors acknowledged the utilities’ position in their letter to federal agencies, but they said PG&E should be compelled to continue to operate the project. “PG&E does not want to continue operating Scott Dam,” the letter stated. “However, if FERC approves the plan to decommission the dam under Project 77, it would appear FERC would be acting against the President’s Executive Orders. If FERC cannot convince or compel PG&E to continue operation of the dam, there will be devastating impacts to our infrastructure, economy, and public safety.”
Local farm bureaus in Lake, Mendocino, Sonoma, and Marin counties have also requested federal intervention, warning of devastating impacts on local farms, economies, and wildfire defenses. They suggested that the Bureau of Reclamation assume ownership of the dam to maintain water deliveries.
The Bureau of Reclamation acknowledged these concerns in the April 14 letter to the Lake Pillsbury Alliance, stating they were "consistent with other perspectives we have heard in recent weeks from the Lake County area" and that funding for the project is under review.
PG&E is expected to submit its final decommissioning plan by July 29, 2025. Lake County hopes federal intervention will prevent the dam from being "recklessly" decommissioned.
