For over a hundred years, the operation of two dams has shaped how water flows across parts of Northern California.
Part of the Potter Valley Hydroelectric Project, Scott Dam and Cape Horn Dam have diverted water, created electricity, and changed the flow of the Eel River system.
Now, California is contemplating a possible future for the river system without either dam. A proposal to do just that is currently being evaluated by federal authorities.
A river system is causing a stir in California
The Potter Valley Hydroelectric Project is located within the Eel River and East Fork of the Russian River watersheds in Lake and Mendocino counties. On July 25, 2025, according to the Federal Energy Regulatory Commission (FERC), Pacific Gas & Electric Co. submitted an application to surrender and decommission the Potter Valley Hydroelectric Project.
As a result, federal authorities are conducting an in-depth evaluation of the proposal.
As part of their evaluation, FERC is developing an environmental document under section 102(2)(c) of the National Environmental Policy Act (NEPA).
To inform this assessment, the agency will assess both beneficial and adverse effects associated with surrendering and decommissioning the hydroelectric project.
FERC is taking additional steps to ensure all voices are heard regarding the proposal. Meetings have been conducted throughout California to receive public feedback.
Comment periods have been expanded so agencies, Tribes, organizations, and individuals can provide input and identify environmental concerns requiring further review.
An opportunity for a new home for the fish
In addition to creating new opportunities for environmental review, another focus area of interest for many people is fish passage. Specifically, reports from the Federal Energy Regulatory Commission indicate that fisheries are among the environmental considerations being evaluated as part of the NEPA process.
The Eel River contains migratory fish species such as salmon, steelhead, and Pacific lamprey.
PG&E states that removing Scott Dam and Cape Horn Dam would allow fish to access habitat in the Upper Eel River watershed.
FERC has not yet reached a final determination regarding the surrender application and continues to conduct its environmental review.
The agency has stated that it will analyze both beneficial and adverse effects related to the proposed surrender and decommissioning. Additional information about the environmental review process is available in another report from the Federal Energy Regulatory Commission.
As a result, regulatory bodies are soliciting information and studies from interested parties which may assist in shaping the final environmental study.
The proposal’s public review process was also detailed in a notice published in the Federal Register.
The debate is more than just about the infrastructure
While proposals to surrender and decommission hydroelectric projects typically focus on removing infrastructure from rivers, the current plan goes further. As part of the surrender process, PG&E has requested authorization to utilize non-project lands associated with the hydroelectric project.
Specifically, the proposal allows for the construction of a “New Eel-Russian Facility” on land associated with the hydroelectric project by the Eel-Russian Project Authority.
The purpose of the proposed facility is to continue to divert water from the Eel River watershed to the Russian River watershed via existing project infrastructure once the surrender process is complete.
Regulatory bodies are analyzing how dams may affect water management and habitat conditions within downstream watersheds. They are also evaluating how other aspects of river systems may be impacted upon retirement of hydroelectric projects, including fisheries and recreational uses.
Although no final determination has yet been made regarding this proposal, it has already brought renewed attention to the future of the Eel River.
The river system may be facing one of the largest transformations in its recent history as federal authorities weigh the proposal.
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