Taxpayers to Cover $500M+ in PG&E Rate Hikes for Potter Valley Dam Decommissioning
Residents from Sonoma to Mendocino County will lose approximately 26 billion gallons of water as PG&E rates skyrocket
Recently, California Congressman Jared Huffman’s Senior District Representative John Driscoll confirmed that taxpayers will cover the costs for PG&E to decommission the Potter Valley dams.
During the 2024 elections, Huffman’s opponent, Military Veteran Chris Coulombe sounded the alarm regarding the disastrous aftermath to take place following the dam decommissioning.
Through his extensive military leadership, Coulombe has a background in geo-politics. On January 17, 2024, MendoFever published an opinion piece submitted by Mr. Coulombe.
“A group led by Huffman is promoting the destruction of our regional water infrastructure. Their aim is to substantially reduce our regional water storage by removing Scott Dam and Lake Pillsbury. Estimated cost: $500 million.”…
Over the last decade, the North Coast has faced a prolonged regional water crisis. In addition to the nearly $1 billion California has received to date from the Biden infrastructure bill to improve water infrastructure, the state sat on $2.7 billion specifically allocated for water storage development for almost a decade.
Yet, Representative Huffman intends for us to spend upwards of $500 million to reduce the North Coast’s freshwater storage by 26.2 billion gallons (80,650 Acre Feet) — equal to 9 months and 12 days of water for all 714,420 humans in the district.”
The Potter Valley Project is a 9.4-megawatt hydroelectric facility, more than 100 years old, that includes an interbasin transfer of approximately 62,500 acre-feet of water from the Eel River to the East Branch of the Russian River. This project is owned by Pacific Gas and Electric Company (PG&E) and includes two dams: Cape Horn Dam, a low diversion dam with a fish ladder that transfers water to the Russian River; and Scott Dam, located 12 miles above Cape Horn Dam. Scott Dam blocks migratory access for threatened populations of Chinook salmon, coho salmon, and winter steelhead to high-quality, cold-water habitat in the 288-square-mile watershed above it, within Mendocino National Forest.
Beginning in 2018, Congressman Jared Huffman convened stakeholders to advance a Two-Basin Solution for the future of the Potter Valley Project that would remove Scott Dam, remove and/or replace Cape Horn Dam, restore fish passage, and continue diversions to the Russian River during high winter flows through modified infrastructure. In 2019, prior to filing for bankruptcy, PG&E formally withdrew its application from the Potter Valley Project’s Federal Energy Regulatory Commission (FERC) relicensing process, leaving an uncertain future for the project. In response, California Trout, the Round Valley Indian Tribes, and local stakeholders developed a plan for the future of the Project that advances the Two-Basin Solution and meets the needs of all communities in the Russian and Eel River basins. The plan establishes the FERC license surrender process as the best path for advancing the Two Basin Solution. CalTrout, the Round Valley Indian Tribes, and local stakeholders stand ready to engage with PG&E and state and federal agencies in the FERC-driven process for decommissioning all the facilities on terms that improve upstream and downstream fish passage while also meeting the water and power needs of the local communities.
Mr. Douglas H. Bosco was appointed to the State Coastal Conservancy by Governor Gray Davis in November 2003, and has served as its Chairman since November 2004. Mr. Bosco served as a Member of the United States House of Representatives (1982-1990), representing California’s First District, which stretches from Sonoma County to the Oregon border.
While serving as the Conservancy Chair, Mr. Bosco has been involved in a multitude of business endeavors. Bosco's business partner Darius Anderson lobbied for PG&E as they withdrew from the FERC relicensing process in 2019. The CA Coastal Conservancy simultaneously led PVP studies to consider dam removal.
Per his 2019 statement of economic interest reported to the Fair Political Practices Commission, Bosco was a business partner to Mr. Darius Anderson, CEO of Kenwood Investments, LLC, Founder and Chairman of Platinum Advisors and Founder and Managing Member of Sonoma Media Investments, LLC.
Anderson currently serves as a Newsom Appointee to the California Fish and Game Commission.
Per Cal Access, Platinum Advsisors retained PG&E as a lobbying client from 2017-2018 following the tragic Tubbs Fire.
PG&E poured $2 million into Anderson’s Rebuild Northbay Foundation as the utility ramped up its political machine.
Per a July 2019 article in the North Bay Bohemian:
“Gov. Gavin Newsom was pushing hard on state legislators to rubber-stamp AB 1054, a complex bill that would, among other things, establish a $21 billion “wildfire fund” that would be half funded by ratepayers. If it passed, the state’s investor-owned utilities could dip into the monies to pay for damages from future fires caused by their equipment.
Newsom urged legislators to pass the bill before leaving for the summer break on July 12, citing concerns about the approaching fire season and a threat from Wall Street credit rating agencies to downgrade the lending status of the state’s three utilities.
The L.A. Times and San Francisco Chronicle weren’t persuaded. On July 11, the Times editorial board urged the Assembly to “say no to being rushed by Wall Street into the hasty adoption of a complex law that puts Californians on the hook for billions of dollars.”
It’s more important to get AB 1054 right than it is to get it passed quickly,” the Chronicle wrote. “The state Assembly must resist the pressure and stop giving this bill a fast run to the governor’s desk.”
For its part, the Press Democrat took an opposite view of the bill. The local paper of record ran an editorial that downplayed criticisms of AB 1054 and urged the Assembly to fast track the controversial bill.
“Despite some claims to the contrary, this bill isn’t a bailout for PG&E or the state’s other investor-owned utilities, Southern California Edison and San Diego Gas & Electric,” the PD‘s July 11 editorial argued. “It does offer them some protection so long as they follow the rules, including spending $5 billion of shareholder funds on fire prevention and submitting wildfire safety plans annually for state approval. … There’s no reason to wait any longer.”
In its editorial, the paper did not disclose that Darius Anderson, managing member of the paper’s parent company, Sonoma Media Investments, is a registered lobbyist for PG&E. Nor did the Press Democrat‘s board of editors, which includes Sonoma Media Investments CEO Steve Falk, disclose that the Rebuild Northbay Foundation, the nonprofit founded by Anderson to receive funds for “rebuilding” fire-devastated communities—is almost entirely funded by PG&E.”
On August 28, 2019, Platinum Advisors issued the following letter regarding legislative updates:
Following the California wildfires, on Jan. 29, 2019, PG&E filed for Chapter 11 bankruptcy.
On Sept. 26, 2019, the CPUC opened a formal proceeding to consider the ratemaking and other implications of proposed plan of reorganization for resolution of the voluntary case filed by PG&E. The CPUC’s role as a regulator is to ensure PG&E’s responsibilities are being discharged so that its customers receive safe and reliable service at reasonable rates consistent with achieving California’s climate goals. The CPUC will consider the impacts on ratepayers of PG&E’s proposed plan. The CPUC must also make other findings, pursuant to Assembly Bill 1054 passed in July 2019, in order to ensure that PG&E’s proposed plan and other documents resolving PG&E’s insolvency proceedings meet California’s climate goals, are neutral on average to ratepayers, and that the resulting governance structure of the reorganized utility are acceptable in light of PG&E’s safety history criminal probation, and recent financial condition.
Geosyntec Consultants, Inc. was listed as a creditor within the bankruptcy filing. In bankruptcy, creditors can be paid through a distribution from the debtor's estate, or by reclaiming property from the debtor. The process depends on the type of bankruptcy and the type of debt.
On October 10, 2019, the Mendocino County Inland Water & Power Commission stated the following in their minutes regarding sediment studies for the PVP:
Pauli updated the group on the sediment study at Lake Pillsbury which the NOI Partners could use for the April FS. The Coastal Conservancy has hired Geosyntec Consultants to perform the study, but they need to get it done before the heavy rains or they won’t be able to start again until June. At first PG&E refused to grant them access but they have now given permission and sent a letter to FERC requesting that the consultants be allowed to do the study and why it needs to be done. The study would include whether there are toxins present or not.
Geosyntec published a study regarding sediment characterization to support dam removal on the Eel River.
While Huffman receives campaign donations from PG&E, he has also received large donations from lobbyist Darius Anderson.
On November 20, 2019, ABC10 published the following:
Per a February 26, 2018 article in the North Bay Business Journal, Congressman Huffman and Lt. Gov. Gavin Newsom were honorary Board Members of Anderson’s Rebuild North Bay.
Bosco and Anderson are currently under investigation with the FPPC regarding potential financial conflicts with the Great Redwood Trail.
U.S. Rep. Jared Huffman and state Sen. Mike McGuire have been leading the charge for the Great Redwood Trail at the state level.
As the PVP decommissioning process moves forward, has Congressman Huffman represented the best outcomes for constituents, or rather lobbyists, corporations and utility giants?
“Then he said to them, ‘Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions” -Luke 12:15
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