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UVWA committee backs regional IWPC track as PG&E prepares to surrender Potter Valley Project

Ukiah Valley Water Authority Executive Committee · September 29, 2025
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Summary

Members discussed PG&E's planned surrender of the Potter Valley Project and Lake Pillsbury; staff characterized litigation to save Lake Pillsbury as unlikely to succeed and urged continued support for the IWPC two-basin solution. Staff said DWR-funded designs are at 60% and the state has agreed to fund significant construction costs.

Committee members spent an extended portion of the Sept. 29 meeting discussing PG&E's planned surrender of the Potter Valley Project and the regional options for securing water supplies. Staff framed two main tracks: litigation to try to keep Lake Pillsbury at current levels, and a multi-agency IWPC two-basin solution that would remove aging facilities at some sites, build new diversion infrastructure, increase storage on this side of the divide and transfer water uphill to Powder Valley.

Staff said the IWPC track is already funded and under design: "DWR is funding the design of those new facilities. Those facilities are at 60% design," a staff member said, and added that the state has agreed to fund a substantial portion of construction. Staff and elected members warned that public fracturing around competing approaches could jeopardize the IWPC process.

When asked about litigation to save Lake Pillsbury, staff said that path has attracted attention but was unlikely to succeed and noted PG&E's financial liabilities: "it loses a giant pile of money... it loses approximately $8,000,000 a year," a presenter said to explain why PG&E sought to leave the project.

Members urged their districts to budget for ongoing IWPC contributions and to consider joining the IWPC as a member agency once the IWPC JPA amendments are complete. Staff said they are working with IWPC counsel and expect to finish amended JPA language that would permit new members within about six months.

The committee did not take a formal vote on joining IWPC but asked staff to continue outreach and return with draft agreement language and membership options for member agencies to consider.