At the March 6, 2025, Ukiah Valley Water Authority (UVWA) meeting, the Board welcomed its newest member, the Calpella County Water District, and swore in two new representatives. The discussion quickly turned to potential expansion, as several small mutual water companies expressed interest in joining. The Board also voted to approve a $147,750 comprehensive rate study that could pave the way for regional water consolidation, while tackling future challenges like PG&E’s plan to abandon the Potter Valley Project. As the Board works to secure water for the future, the weight of rising costs and strained resources looms large.
The UVWA Board welcomed new JPA member Calpella County Water District. New Board Members representing Calpella, Steven Bogart and Tami Baarsch Bogart, were officially sworn in.
The Board discussed the potential for further expanded membership in the UVWA. Water Resources Deputy Director Jared Walker reported that there are now 5 member agencies. Other agencies have expressed interest in joining. During public comment representatives of small mutual water companies expressed interest in joining the UVWA.
Water Resources Director Sean White said, “It says a lot about what we’re doing that they are interested..” He is not opposed to considering it, but now is not the right time. “There are a lot of moving parts. We will continue to serve them under the MSA [Master Service Agreement].” UVWA recently repaired a water main break for one of these small districts.
Chair Adam Gaska suggested that the Board discuss the formation of an ad hoc committee to study expanding membership in the UVWA at the next meeting.
Ukiah City Finance Director Dan Buffalo discussed the comprehensive rate study for the water utilities in the UVWA. From the staff report attached to the meeting agenda: “Hildebrand Consulting, LLC, has been selected to conduct this study in two phases: first, analyzing the financial needs and rate structures of the individual utilities, and second, developing a unified rate schedule for potential regional consolidation. The total cost for the study is $147,750, with completion targeted for July 2025.” Buffalo explained that the first tranche will include individual rate studies for the water districts comprising the UVWA, and the second tranche will study unified rates across the water districts and will also evaluate financial impacts of regional consolidation.
The Board voted to approve hiring Hildebrand Consulting for the study.
White and Walker gave a status report on the infrastructure grant that they are working on with Carollo consulting engineering firm. The next step is to prepare the planning grant application. White suggested forming an ad hoc committee to discuss infrastructure plans at the next board meeting. The Carollo engineers included data from Calpella when they were touring the area.
Attorney Phil Williams, Special Water Counsel for the City of Ukiah and also Counsel for the UVWA, gave a comprehensive status report on PG&E’s intent to abandon the Potter Valley Project and to decommission Scott and Cape Horn Dams on the Eel River, and what this means for Russian River water users. Williams’ complete presentation is available to view on video at the link below (item 6.d on the agenda). Williams said, “Everything here is my opinion. I’m not speaking for the City of Ukiah, I’m not speaking for anyone else.” Williams brought the Board up to speed on the complex issues.
This is a summary of some of the main points.
The Inland Power and Water Commission, chaired by Janet Pauli, is the entity representing inland Mendocino County’s water needs when it comes to negotiating with PG&E. UVWA is not a member of the IWPC, but two of the agencies within UVWA are members: Redwood Valley County Water District, and the City of Ukiah. UVWA members Millview, Willow and Calpella County Water Districts are not members of IWPC.
The water diverted from the Eel River that was originally used to generate hydroelectricity at the Potter Valley Project has historically been considered “abandoned” water once it flows past the generating plant. The abandoned water that flows into the Russian River has been used for many years by water districts and ag users. As part of the agreement to build a new diversion, PG&E will transfer its rights to the diverted water to the Round Valley Indian Tribes, whose lands are situated along the Eel River. The RVIT will agree to lease the water rights back to the Russian River users. Water that had been almost free, will now be “under contract,” and will cost significantly more. The existing appropriative water rights regime along the Russian River are going to change.
In the short term, Williams is working to document the need for diverted Eel River water by communities along the Russian River. Because the PVP diversion is 120 years old, and the fact that the water was considered “abandoned,” there is little documentation in the state water records showing that communities along the Russian River have a need for the diverted water.
Prior to 2006, an average of 150,000 acre feet of water was diverted every year. Beginning in 2006, that amount was reduced over time. In 2023 only 35,000 acre-feet were diverted. PG&E has been reducing the amount of diverted water since 2013 by submitting variance requests to the Federal Energy Regulatory Commission, even in years with normal rainfall, where there is no need to reduce the flow. Last year, Ukiah Valley and Russian River water agencies asked FERC not to allow PG&E to continue applying for variances. PG&E has not submitted any further variance requests.
IWPC and Sonoma Water have spent the past year negotiating with PG&E to have the utility include ERPA’s plans for a new diversion facility in PG&E’s final surrender application to FERC. PG&E did include ERPA’s plans in its final draft surrender application. In preliminary analysis, IWPC estimates that users in the Ukiah Valley will need about 24,000 acre-feet per year of diverted Eel River water, but need to plan for 30,000 acre-feet in order to leave room for water loss.
The New Eel Russian Facility will only operate during rainy months with high flows in the Eel. Very dry winters could result in lower or no diversions for that year. Russian River water users will pay RVIT for the water. Russian River users will have to pay for the construction, operation, and maintenance of the NERF. Russian River users will also need to make payments for the ecological restoration of the Eel River. Potter Valley and Ukiah Valley need to build more storage capacity (such as ponds) for water on this side of the diversion. Ukiah and Potter Valley will also need to work out the costs and amount of water shared with Sonoma County.
Williams said, “If we get it wrong, our region will suffer. It will be like 2021 every year,” referring to the severe drought and lack of ag water in 2021. He continued, “The cost to lease the water for our community will seem significant to our community, only because the baseline has been essentially zero.”
Comments from the commissioners following Williams’ presentation expressed concern about the cost, but agreed that it is important for the future to preserve access to water. The MOA recently signed between IWPC, Sonoma Water, and RVITU is for a 30-year term, with an option for a 20-year extension.
Chair Gaska hopes that more water districts will join the IWPC. He said, referring to the amounts of money outlined in the water diversion terms, “It got me kind of worked up, and I had a lot of concerns and reservations. Is this the right thing to do? Is this really worth it? But then I think about the history of the building of Coyote Dam, and how our Board of Supervisors and community missed a big opportunity, and especially our district, Redwood Valley, missed a big opportunity by not investing in it. It’s left us behind for the last almost 50 years… I don’t want to make the same mistake.”
Williams observed that IWPC is just beginning to analyze the financial terms of the lease with its real property negotiators, but the reality our community needs to understand and prepare for is that water is going to become more expensive, and we need to plan accordingly.
Here is a link to the video of the meeting.
I’m thankful for the entities that are working on a solution for water sustainability. This is why the dams need to stay in place. Save the dams.