PG&E Nuclear Plant
Diablo Canyon Retirement 


Background 

On August 11, 2016, PG&E filed an Application with the CPUC proposing to retire Diablo Canyon Units 1 and 2 when its licenses expire in 2024 / 2025, and replace it with GHG-free resources. Diablo Canyon is located near San Luis Obispo and is California’s last operating nuclear power plant.

PG&E will no longer pursue a U.S. Nuclear Regulatory Commission (NRC) license extension, which could have added an additional 20 years to the life of the nuclear plant. 

PG&E requests the CPUC approve the Joint Proposal by additional parities, including Friends of the Earth, NRDC, Environment California, IBEW, CCUE and Alliance for Nuclear Responsibility.

PG&E asserts that its proposal is consistent with SB 350 to promote increased GHG-free energy generation resources. PG&E proposes to replace Diablo Canyon with:

  • Energy Efficiency: 2,000 GWH (2018-2024) 
      
  • Energy Efficiency: 2,000 GWH (2025-2030) 
      
  • Eligible Renewables:  55% of its total retail sales (2031-2045) 

PG&E discusses support for additional energy storage, but does not provide details.  

 

 PG&E proposes the following cost recovery: 

  • Employee Retention, Retraining & Severance Program:  Estimated cost $350 million  
      
  • Community Impacts Mitigation Program:  Estimated cost $49.5 million (e.g., compensation of property tax loss to San Luis Obispo County) 
      
  • NRC License Extension Costs:  Estimated cost $53 million


ORA Position 

ORA performed an in-depth review of PG&E’s request to close Diablo Canyon nuclear power plant, and does not oppose its request. However, PG&E’s proposed Replacement Procurement is premature, and authority should not be granted in this proceeding. Ratepayers should only fund a portion of the proposed Employee Program costs, and none of the Community Impacts Mitigation Program and License Renewal costs.

See ORA's:

January 27, 2017 Testimony.

 


CPUC Docket 

See the Proceeding docket.    

Here you can find the full record of the case and subscribe to proceeding updates.     

  


Other Resources 

PG&E 2015 Nuclear Decommissioning Triennial Proceeding

CPUC Nuclear Webpage