New Twist for Potter Valley Project

Source: Redheaded Blackbelt  |  By Sarah Reith

As PG&E prepares its plan for decommissioning the inter-basin water transfer hydropower project that diverts water from the Eel River to the Russian River, the Federal Energy Regulatory Commission, or FERC, announced that it is considering reopening the license. That means that, although it granted PG&E an annual license in April, it’s thinking about adding requirements for a number of wildlife protection and habitat monitoring measures that were proposed in March by the National Marine Fisheries Service, another federal regulatory agency. PG&E argues that the decommissioning process will provide plenty of opportunity to review protective measures, and that there’s no evidence of harm to embattled salmon. But FERC appears to have taken notice of legal threats by environmental groups claiming the project violates the Endangered Species Act.

Mark Toney, the Executive Director of The Utility Reform Network, or TURN, a ratepayer advocacy group, said TURN is “opposing the deal strenuously.” One of TURN’s many worries is that if PG&E goes bankrupt again, its assets could be out of reach of settlements. TURN filed an objection to PG&E’s proposal and the request for expediting the proceeding, declaring that, “this application benefits shareholders, and an expedited schedule would only serve to benefit shareholders…not avoid ratepayer harm.” TURN also asked if it was reasonable for PG&E to indemnify Pacific Generation for wildfire damages caused by PG&E’s equipment, writing that “The Commission should examine whether this would result in an unreasonable transfer of risks.”

Collins also speculates that if the transfer is approved, the company could raise debt on some of its projects. The utility insists that the transfer should enable Pacific Generation to issue debt at lower rates than PG&E, but TURN worries that “the total amount of debt could very well increase as a result of this transaction.”