Buyer comes forward to purchase Potter Valley Project from PG&E
Dam removal no longer looks certain as Southern California water district meets with Ag Secretary Brooke Rollins on acquisition.
A Southern California water district has come forward as a potential last-minute buyer of the Potter Valley Project, a century-old Northern California hydropower system slated for demolition, in a development that could save a critical water source for 750,000 people.
The Elsinore Valley Municipal Water District says it wants to purchase the project from Pacific Gas & Electric (PG&E), keep both dams in place, restart hydroelectric generation, and preserve the water supply.
Agriculture Secretary Brooke Rollins announced the news this morning.
“This would allow President Trump and Secretary Burgum to restart/expand reliable hydroelectric electric generation while keeping both in place. I hope PG&E is taking them seriously,” she wrote on X. “Such a transaction would secure reliable water for 750,000 Californians and hundreds of hardworking farmers who rely on it for irrigation.”
Rollins and NRCS Chief Aubrey Bettencourt met with representatives from Elsinore Valley MWD in D.C. last week.
It’s a major shakeup in a dam removal portrayed to the community as inevitable.
In 2019, PG&E announced it would not seek a new operating license for the project, saying it had become uneconomical to run. This came after years of environmental lawsuits by green NGOs claiming the dams hurt fish resulted in slashed water flows and reduced power generation.
PG&E filed a formal surrender and decommissioning application with the Federal Energy Regulatory Commission (FERC) in July 2025. Customers would pay the estimated $500 million price tag for removing the dams, according to Congressman Jared Huffman’s office. But a PG&E insider, who asked to remain anonymous, said the true cost of dam removal is estimated internally at $1-2 billion.
Several Elsinore Valley MVD board members—general manager Greg Thomas, vice president Darcy Burke, and director Chance Edmondson—attended a January meeting between Agriculture Secretary Brooke Rollins and Potter Valley Project stakeholders. The following week, Burke met with PG&E in Sacramento to express interest in the project on behalf of her board. Burke and Edmondson also attended a meeting of the Potter Valley Irrigation District in March.
“As part of our Strategic Plan, Elsinore Valley Municipal Water District (EVMWD) actively explores opportunities that support long-term water reliability and protects public health,” said Sylvia Ornelas, public information officer for EVMWD. “This includes looking at water infrastructure and supply options beyond our immediate service area. Because this project involves a potential infrastructure and supply acquisition, we are limited in what we can share. Above all, we are committed to providing reliable, high-quality water for the communities we serve while being thoughtful about how statewide water issues may affect our customers as well as all Californians.”
PG&E did not respond to a request for comment, but told another outlet the “window to take over the project and continue to operate it as a hydroelectric project closed years ago.”
Sources say PG&E has requested a proposal from Elsinore Valley MWD, and that the Trump Administration is expected to reach out with a formal invitation to Washington, D.C. for negotiations in the coming weeks.
Under the current plan, PG&E would hand over water rights to the Eel-Russian Project Authority (ERPA), a joint powers group that would build a new, smaller diversion facility in place of the Cape Horn Dam to accommodate flows during high-rainfall months. Residents say this plan would put them at risk of flood in the winter and drought in the summer.
Burke says PG&E directed her to speak with ERPA during her Sacramento meeting.
But ERPA’s executive director David Manning says the group has no role in PG&E’s decision.
“PG&E would be the appropriate party to respond to a proposal,” Manning said. “The Eel-Russian Project Authority continues to work on the design of the New Eel-Russian Facility, a solution that is underway to provide continued diversions from the Eel River to the Russian River.”
The Elsinore Valley MWD is not alone. Other entities have also expressed interest in acquiring the project.
“This is a major step in water security for over 750,000 people, as well as the agricultural industry that the Russian River region was built on,” said Cloverdale Mayor Todd Lands. “I am thankful all parties are doing what is right for the people and environment together.”
Lands met with Burke and other representatives repeatedly in the months leading up to Rollins’ announcement.
“I’m thankful for PG&E’s willingness to do what is right for their ratepayers,” he said.
Local advocates and leaders react
Rich Brazil, chair of local advocacy group Save Potter Valley Project, said while buyer interest makes sense, it raises questions about whether good faith efforts were ever made to sell the dams before pursuing demolition.
“This is water and power in the state of California,” said Brazil. “In a place where we pay the highest energy bills in the country, obviously water is valuable, and power is valuable. These dams are an attractive asset. This is existing, proven infrastructure already in place.”
He questioned the involvement of Governor Gavin Newsom, who promised to remove the Potter Valley dams as part of his “salmon restoration strategy.” PG&E is a major political donor of Newsom’s and is regulated by a board he appoints.
Other advocacy groups also expressed support for a buyer.
“On behalf of the Mendo Matters group, we thank Secretary Rollins, Secretary Burgum, and the Trump administration teams for their tireless work to save our water and support the Lake Pillsbury project—protecting the lifeblood of our livelihoods, businesses, and farms,” said Kerri Vau, chair of Mendo Matters. “This progress brings renewed hope to more than 700,000 residents across our region.”
“At this juncture, all alternatives are welcome and worth exploring,” said Carol Cinquini, chair of Lake Pillsbury Alliance. “We appreciate that Elsinore Valley Municipal Water District has stepped forward and we are very interested to learn more about their plans for a future Potter Valley Project. For us, getting Lake Pillsbury back to full capacity is essential for wildfire protection, recreation and our community way of life, and to assure that year-round flows continue to sustain the lives and livelihoods of all communities along the Eel and Russian Rivers.”
“Very pleased to see what can happen when engaged citizens stand together, take charge of their future, and set the next generations up for success,” said Chris Coulombe, a grassroots organizer from Sonoma County. “Thank you to all that have joined in this fight to protect our natural resources. I hope this shows others that we can win.”
Farmers and ranchers in the area were ecstatic and relieved.
“Securing water and electricity for the communities, wildlife, and farms in Lake, Mendocino, and Sonoma counties will be crucial for generations,” said Ken Foster, a farmer in Potter Valley. “This is welcome news!”
“Not only does this project provide water for our vulnerable small local farms and hundreds of thousands of community members, it also provides large amounts of electricity that can be obtained in a green manner,” said Shelina Moreda, a Petaluma farmer and co-founder of Communities for Food & Family Farms. She is running for Sonoma County District 2 Supervisor. “Keeping the Potter Valley dams also ensures we have accessible water to put out fires before they get huge—we’ve heard too many times where we ran out of water to fight a fire. This checks so many boxes, while also keeping the control and money, local. To me this is a win, win, win for the local food supply, local community, and local businesses. This is excellent news and I hope this offer is taken seriously.”
Editor’s Note: Potter Valley is my hometown. I have been involved publicly and behind the scenes in advocating for the region’s water supply.
How the turn tables! Will be interesting when PG&E is summoned to White House to explain why they're not engaging with this buyer