- Elizabeth Larson
- Posted On
PG&E not relicensing Potter Valley Hydroelectric Project, ending auction for facility
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NORTH COAST, Calif. – Nearly two weeks after it said it planned to file for bankruptcy, Pacific Gas and Electric has announced that it will not relicense its Potter Valley Hydroelectric Project in Lake and Mendocino counties and will end an auction for the facility, which is expected to trigger a federal process.
On Friday, PG&E submitted a letter to the Federal Energy Regulatory Commission, or FERC, providing its “Notice of Withdrawal of Notice Of Intent to File License Application and Pre-Application Document” for the Potter Valley Project.
PG&E has owned the project since 1930.
The project’s current FERC license expires in 2022, PG&E reported.
In September, PG&E started the process for auctioning off the hydroelectric project, which consists of two dams along the upper Main Stem Eel River, a powerhouse in Potter Valley in Mendocino County, and about 5,600 acres of land, including Lake Pillsbury in Lake County.
This fall, PG&E said it already was two years into a minimum five-year process of obtaining a new operating license for the Potter Valley Project from FERC.
PG&E said Friday it will “expeditiously cease all activities related to the relicensing of the Project.” That decision to cease the project’s relicensing will also result in the the company stopping its efforts to sell the project through a request for offers process.
The company said that it anticipates FERC will initiate its “Orphan Project” process, in which it will provide interested parties the opportunity to submit an application for a new project license.
“We believe this path will allow interested parties more time to prepare for the acquisition of the Project and the ability to submit a License Application on their own terms rather than assuming PG&E’s current application,” PG&E said in a Friday statement. “If the Orphan process does not result in the issuance of a new Project License, it is expected FERC will order PG&E to prepare and submit a Surrender Application and Decommissioning Plan.”
Meanwhile, PG&E said it will continue to own and operate the Potter Valley Project in accordance with the terms and conditions of the current license “and all laws, rules, and regulations governing the operation of the Project until a new license is issued or the Project is decommissioned.”
PG&E said it also intends to support the orphan process through provision of work products and information developed to date in the relicensing process to those who apply to FERC for a new project license.
The company said it “recognizes that many stakeholders have invested significant effort in the relicensing process and we are very appreciative. We apologize for any challenges or inconvenience this action might cause.”
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