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Commission hears Potter Valley Irrigation District MSR workshop as PG&E decommissioning raises future‑supply questions
Summary
LAFCO staff presented a second MSR for the Potter Valley Irrigation District. Commissioners questioned the district about future storage, funding, and the effects of PG&E's decommissioning of the Potter Valley Project; district officials and representatives from IWPC described ongoing planning and funding efforts.
Mendocino LAFCO held a Feb. 3 workshop on a draft municipal service review (MSR) for the Potter Valley Irrigation District (PVID), with staff and district representatives describing infrastructure, service responsibilities and planning underway to respond to PG&E's planned decommissioning of the Potter Valley Project.
Executive Officer E.O. Hinman and PVID representatives outlined the district's history and assets. The district was formed in 1924, covers about 6,966 acres and serves roughly 275 agricultural customers. Irrigation water is diverted from the Eel River through the Potter Valley Project; the district contracts with PG&E for up to 19,000 acre‑feet annually and an additional 3,600 acre‑feet when available. District infrastructure includes approximately 18 miles of canals, 18 miles of laterals, four flumes and six siphons.
PG&E's FERC license for the Potter Valley Project expired in 2022 and PG&E is in the process of decommissioning some project elements. Several entities, including the Eel‑Russian Project Authority (IRPA) joint powers authority and the Inland Water Power Commission (IWPC), are coordinating planning for post‑project infrastructure and diversion arrangements. Don Brown, current PVID superintendent, and Steven Elliott, retired superintendent, both joined on Zoom and answered commissioners' questions.
Commissioners focused on the future of storage and funding. Commissioner Ward asked whether the district is budgeting for capital improvements such as additional storage ponds or deeper wells; district representatives said they have contributed limited amounts—about $50,000 in the prior year—toward IWPC and that most funding for large‑scale storage or diversion solutions would require grant funding or partner contributions. Commissioner Ward pressed for clearer inclusion of those contributions in the MSR; staff agreed to add information about the district's contributions to IWPC and the status of related studies.
Commissioner Horsley noted a planning study video and materials available on the IWPC website that discuss potential storage sites, recharge and cost estimates; commissioners observed that proposed storage solutions could cost millions of dollars. Don Brown and others said planning is advanced enough that outcomes could be clearer later this year: PVID expects to see IRPA's plan included in PG&E's decommissioning filings to FERC by mid‑year, which will guide next steps on facilities and funding.
No formal action was taken; staff will revise the draft MSR to add clarifying detail about IWPC contributions, the status of storage planning studies and holdings outside the district boundary, and will schedule a public hearing for adoption at a later date.
