Study Session: Update on PG&Es
Potter Valley Project
1 City Council Meeting
November 1, 2022
Jennifer Burke – Santa Rosa Water Director
Peter Martin – Deputy Director Water Resources
Potter Valley
Hydroelectric Project
• ~9.4 MW hydroelectric project owned
and operated by PG&E
• In operation for more than 100 years
• On average, 60,000 acre-feet of water
transferred from Eel River into Upper
Russian River watershed
• Transfers have reduced over time, but
remain critical to the economies of the
upper Russian River in Mendocino and
Sonoma County
3 History of PVP FERC License Efforts
• PG&E’s current Federal Energy Regulatory Commission (FERC) license expired in April 2022
• 2017 – PG&E files notice of intent and initial documents to relicense the project
• 2019 – PG&E withdraws their intent to relicense the project • 2019 – “Two Basin Solution Partnership” is formed
• 2019 - 2020 – Partnership submits notice of intent to relicense project and pursues pathway for license that is “mutually beneficial” to the Eel and Russian River basins needs
4 “Two-Basin Solution
Partnership”
Members
• CalTrout
• County of Humboldt
• Mendocino Inland Power and
Water Commission
• Round Valley Indian Tribes
• Sonoma Water
5 • Feasibility Study Completed in 2020
• Preferred Project - Total Estimated Costs: $100M to $400M (rounded)
• Estimated Relicensing Costs: $20M to $30M
• Pursued funding to complete necessary studies to meet relicensing requirements by April 2022
• In early 2021, Partnership determines it can’t secure enough funding to complete relicensing studies by April 2022 deadline and requests a time extension from FERC
• In Sept 2021, FERC denies the Partnership’s request for extension Partnership Activities
6 • February 2022 – PG&E notifies FERC of its intention to surrender the license and decommission the project
• May 2022 – FERC issues PG&E a request for plan and schedule for surrender application
• July 2022 – FERC accepts PG&E ‘s proposed plan and 30- month schedule for submitting the PVP surrender application and decommissioning plan
PG&E FERC license: Surrender and
Decommissioning of PVP Project
7 • Legal challenges re: Endangered Species Act (ESA) coverage for ongoing PVP operations
• Fisheries groups seeking expedited surrender and decommissioning • Round Valley Indian Tribes (RVIT) and Wiyot Tribe seeking private consultation with FERC
• Potential intervention by other interests (e.g. Lake County) • Transformer failure and PG&E repair at hydroelectric facility • Timely formation of a regional entity to negotiate and acquire necessary elements of the PVP to continue diversions
Factors That May Affect PVP
Surrender and Decommissioning
8 Potential Impacts on Lake Mendocino
Sonoma Water: without future PVP
transfer to Russian River…
• In 8 out of 10 years there will not be enough
water supply to meet all the needs of the upper
Russian River region
• In 2 of those 8 years, predicted to be a 30,000 AF
shortage; Lake Mendocino predicted to go dry
• All supply scenarios with future climate change
would be more constrained
9 Sonoma Water has secured state grant funding to:
• Study acquisition and potential modification of key
components of the PVP Project for delivering water
supplies
• Analyze and develop concepts to improve water
supply reliability for Potter Valley
• Establish a Russian River Water Forum that aims to
preserve the flow of water from the Project into the
Russian River and support water supply resiliency in
the Russian River watershed
Sonoma Water - California Department of
Water Resources Grant Funded Studies
10 • Develop a plan for strategic engagement
• Conduct outreach to and educate
stakeholders
• Facilitate the creation of a leadership
structure
• Engage in solutions for the Russian River
watershed
Russian River Water
Forum Goals
11 • Sonoma Water developed in Advisory Team
• Identified and invited stakeholders to participate in interviews
• Santa Rosa WAC member, Councilmember Rogers, and
TAC member, Water Director Burke, invited to
participate
Russian River Water Forum Process
12 • BPU Study Session on October 20th and recommended the following:
• Support continued flow of water from the Project into the Russian • Maintain water supply reliability of the Russian River • Support the significant investments made by Sonoma Water and the water contactors in restoration
• Generally support establishment of a Regional Entity to acquire elements of the Project and water rights
• Indicate receptiveness to contributing funding proportional to the benefit received • Ensure any decisions regarding the continued flow of water from the Project are consistent with the Restructured Agreement for Water Supply • Continue to seek opportunities for meaningful input on the Russian River Water Forum and water supply resiliency projects evaluation
Policy Direction / Discussion
13 It is recommended by the Board of Public Utilities and Santa Rosa Water that the Board hold a study session to receive information, ask questions, discuss, and provide direction regarding the future of the Potter Valley
Project to inform Santa Rosa’s WAC and TAC member for
participation in the Russian River Water Forum
Recommendation
Questions and Direction
14