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Project Activity - Proposed
Potter Valley Authority
According to the published "Russian River Water
Plan" of 1969, The Sonoma and Mendocino Districts in 1959
filed Applications 18785 and 18786 to establish a right to
appropriate water in the Eel River for water supply
purposes. The existing water rights held by the
PG&E Company for the diversion at Potter Valley are
primarily for power generation purposes. The Sonoma
Districts also entered into an agreement with Pacific Gas
and Electric Company (PG&E) which provides for the
Districts to acquire the diversion facilities under certain
circumstances. Under Decision 1610, Potter Valley is
considered the area of origin for the water supplies taken
by SCWA at the Wohler intakes. The 160,000 acre feet of
free, pre-1914 water is alleged to be equivalent to an
amount able to serve 640,000 people.
Randy Poole, General Manager and Chief Engineer
of the SCWA is advocating that legislation be passed
authorizing the creation of a new government agency, the
Potter Valley Authority to raise the money to buy the
PG&E Potter Valley facilities. Former SCWA
employee and current consultant, Bob Beach states in his
analysis of the Potter Valley Project proposal that the 1908
Potter Valley diversion works and powerhouse consisted of
the Cape Horn Dam on the Eel River, a tunnel through a
mountain, and the Potter valley powerhouse to provide power
for the City of Ukiah. The original project was
changed in 1921 when Scott Dam was built 12 miles upstream
from the Cape Horn Dam in Lake County. The Scott Dam
holds the Lake Pillsbury water in order to provide a
continuous diversion of water through the
tunnel.
Potter Valley, once known as Ba-Lo-Kai or
valley of shade, once had merely a valley drain or watershed
from the nearby hills surrounding the valley. In 1905,
Eel River Power and Irrigation Company (W.W. Van Arsdale and
George Scott) began construction of a diversion dam at Cape
Horn on the Eel River and blasted out a 5,826 foot tunnel to
carry water to a Power house in Upper Potter Valley. Van
Arsdale Dam was built at Cape Horn and Scott Dam formed Lake
Pillsbury (E.S.. Pillsbury, Esq.) and in 1906 a new company,
Snow Mountain Water and Power Company took over. This of
course was done prior to 1914 when a State statutory scheme
was created whereby application for appropriative right is
to be with State Water Resources Control Board. Thus
the water rights were "pre-1914" or "grandfathered".
By 1908, electrical power was available in
Ukiah and Potter Valley. In the original agreement,
five ranchers living below the power house were guaranteed
water for irrigation and this was used until 1929. In
1929, PG&E acquired the company and in 1933 they
constructed 18 erosion control dams in the tail race canal
and river channel. In 1928 an Irrigation District was
formed covering 5,969 acres and the original contract with
the power company was for 50 years ending in 1972. In
1967, the Potter Valley Irrigation District petitioned
PG&E to extend the term 50 years more. In 1982, a new
contract had still not been settled.
In January, 1991, the SCWA analyzed its supply
deficiencies and supply outlooks and included an analysis of
the Potter Valley Project Reliability in the event of the
abandonment of the Hydroelectric Project by PG&E. The
Reliability Study concentrated on three elements; the loss
of the Scott Dam Gates, loss of Scott Dam, and loss of the
Potter Valley Tunnel.
With the loss of the Scott Dam Gates current
agricultural and urban demands between Coyote Valley Dam and
Dry Creek could still be satisfied. In a critically
dry year, a 30 percent curtailment would have to be taken to
avoid dewatering Lake Mendocino. Under Decision 1610
stream flow criteria, stream flows would be affected between
Coyote Valley Dam and Dry Creek. In normal years
stream flow would be reduced from 185 cfs to 150 cfs from
April through August and occasionally from 150 cfs to 75 cfs
from October through December. The total annual lower
Russian River urban demand which could be satisfied would be
reduced by approximately six percent (6%).
With the loss of Scott Dam, the PG&E
diversion would continue to be made to the extent flows in
the Eel River were available for diversion (while
maintaining current Eel River minimum flows). Under
Decision 1610 stream flow rates, 75 cfs between Coyote
Valley Dam and Dry Creek would apply from June 1 to December
31 of every year. Adequate water would be available to
satisfy the current agricultural and urban demands between
Coyote Valley Dam and Dry creek. The total annual
Lower Russian River urban demand could be satisfied but
would be reduce by approximately 15 percent (15%).
With the loss of the Potter Valley Tunnel,
minimum stream flows between Coyote Valley Dam and Dry Creek
would have to be reduced to 25 cfs in all years. The
current agricultural and urban demands could be satisfied
provided a 30 percent curtailment were taken in critically
dry months. The Lower Russian River urban demand would
be reduced by approximately 15 percent (15%). The
Agency anticipates that in the event of the loss of the Dam
or the Tunnel, the State Water Resources Control Board would
alter the stream flow requirements. Historically, the
125 cfs minimum in the lower Russian River was based in 1959
on the reliance on the Dam and the Tunnel. The agency
feels that a good case could be made that the Municipal
water supply of Lake Sonoma should not be sacrificed to
totally compensate for the loss of the upper river supply
and that the loss should be compensated for with stream flow
reductions.
An average of 159,000 acre feet of Eel River
water is diverted into the East Fork of the Russian
River. Since the creation of the diverted water
system, downstream dependence on the water has
developed. The Potter Valley Irrigation District was
formed in 1924 and buys water from PG&E under a 1936
contract for agriculture irrigation. Next is the
Coyote Valley Dam Project in Mendocino County built in 1959
which holds the waters of Lake Mendocino and stores Russian
River flows that are augmented by the Potter Valley
diversions. Coyote water has been used to provide
water used to maintain instream flows in the entire
downstream Russian River. According to Beach, of the
159,000 acre feet of Eel River water, 100,000 is needed to
maintain normal year Russian River instream flows.
PG&E's Potter Valley project is regulated
by the Federal Energy Regulatory Commission (FERC).
FERC has exclusive jurisdiction to set instream flow
standards on federally-licensed hydroelectric projects and
would have primary authority to review the instream flow
standards in the Eel river associated with the Potter Valley
Project. FERC has specified that the Potter Valley
Project must have a new fish screen to prevent outmigrating
salmonids in the Eel River from being sucked into the
powerhouse and killed. The fish screen could cost
between $14 and 15 million. In addition, the Scott Dam
needs seismic retrofitting with a subsequent cost of $6 to 8
million. With new California Public Utility Commission
decisions to deregulate the selling of electrical power, the
project will probably be a duck dead in the water.
Acquisition of the Potter Valley Project and the continued
operation of the hydroelectric project under Pre-1914 water
rights would not require approval of the State water
Resources Control Board. However, the Pre-1914 right
does not authorize use for consumptive purposes. A
National Marin Fisheries designation of Coho and/or
steelhead listing as endangered species could affect the
operation of the Potter Valley project and the amount of
water diverted from the Eel River into the Russian
River.
Through prior negotiations, local customers
will be given first chance at bidding on the project in it's
entirety. The newly proposed Potter Valley Authority
would be comprised of three counties, Marin, Sonoma and
Mendocino. It is to be governed by a seven member
board: two members from Marin County (one each appointed by
the Marin Municipal Water District and the North Marin Water
District), two from Mendocino (with undetermined appointing
entity), and three from Sonoma County (appointed by the
Board of Supervisors). Representation from Lake and
Humboldt Counties is not specified even though water
withdrawals effect their areas. In September, 1994,
Bob Beach stated that "this water is regarded as abandoned
water and is subject to appropriation."
The State legislation, as proposed in early
1995, proposes a maximum assessment of $20 per acre foot for
municipal, industrial and commercial uses and $10 per acre
foot for agricultural uses.
Federal legislation passed by Congress in early
November, 1995, as an amendment to a federal energy and
water appropriations bill prohibits the Federal Energy
Regulatory Commission (FERC) from approving a license
transfer until it determines the trade will not adversely
affect existing water rights. ."
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