New Eel–Russian Facility Could Preserve Diversions After Potter Valley Dam Removal — But It Needs Separate Approval

POTTER VALLEY, Mendocino County — October 23, 2026. The future of Potter Valley agricultural water does not depend solely on whether Scott and Cape Horn dams are removed. Regional water agencies are exploring a New Eel–Russian Facility (NERF) that could allow some water diversion to continue after PG&E exits the hydroelectric project. The PG&E overview and FERC’s proceeding page describe it as a proposal under consideration, not a completed water-supply facility.

Who is proposing the replacement?

PG&E says the Eel-Russian Project Authority, involving Sonoma and Mendocino regional partners, is pursuing the NERF concept as part of the broader transition. The goal is to preserve the potential for future diversions under separate regulatory approval while the old hydroelectric infrastructure is retired. Water supply operations, rights, fisheries protections and environmental terms would have to be determined under the relevant process.

What is the difference from the old powerhouse?

The original Potter Valley Hydroelectric Project generated some electricity and diverted Eel River water into the Russian River watershed. PG&E says the small hydroelectric generation is no longer economic enough to justify relicensing. A successor diversion structure would not necessarily reproduce the power generation, dams, reservoirs or historical water delivery volumes of the former project.

Will Potter Valley farmers receive the same amount of water?

That outcome is not established. Water deliveries may depend on agreements, seasonal river flows, water rights, fisheries requirements, engineering feasibility, funding and the status of replacement storage options. A plan to develop NERF is not a guarantee of a particular volume of irrigation water on a given date.

What should residents monitor?

Watch FERC’s surrender docket, California State Water Resources Control Board reviews, public notices from the Eel-Russian Project Authority and Potter Valley Irrigation District. Compare notices of intent, actual permit decisions and executed funding agreements before treating construction or delivery assumptions as certain.

Follow Potter Valley News and Rural California. Submit primary-source corrections to the newsroom. Support independent water reporting.

Primary sources: PG&E Potter Valley Hydroelectric Project decommissioning page and FERC P-77-332 proceeding.

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