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Proposal Issued on PG&E's Request to Retire Diablo Canyon

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Proposal Issued on PG&E's Request to Retire Diablo Canyon

Today we issued a proposal (called a Proposed Decision) by an Administrative Law Judge that, if adopted by our Commissioners, would approve Pacific Gas and Electric Company's (PG&E) proposal to retire the Diablo Canyon Nuclear Power Plant in San Luis Obispo.  The power plant is expected to retire by 2025. 

A CPUC Administrative Law Judge evaluated the schedule for closure of the power plant, PG&E's request for replacement procurement, and requests for cost recovery, some of which were supported by various parties in several settlement agreements, and issued the proposal released today that:

  • Determines that consideration of any electricity procurement that may be needed to replace Diablo Canyon should be addressed in the CPUC's Integrated Resources Procurement proceeding. 
  • Allows PG&E to recover in rates $190.4 million in costs associated with retiring the plant:
    • $160.5 million to retain PG&E employees until the power plant is scheduled to close
    • $11.3 million for retraining of workers
    • $18.6 million for Diablo Canyon license renewal expenses incurred by PG&E
  • Finds that PG&E's request for $85 million for a Community Impact Mitigation Program (CIMP) requires legislative authorization, although PG&E may choose to use shareholder funds to support the CIMP.


On August 11, 2016, PG&E filed an Application (A.16-08-006) with the CPUC proposing to retire Diablo Canyon upon the expiration of its current operating licenses. Unit 1 of the power plant expires in 2024 and Unit 2 expires in 2025.  

 

PG&E requested approval to partially replace the output of the power plant with 2,000 GWh of energy efficiency. Today's proposal does not provide that approval, but instead finds that any replacement procurement should be addressed in the Integrated Resource Planning proceeding, which is actively considering the optimal mix of resources needed to reduce the greenhouse gas emissions from the electric sector while simultaneously maintaining reliability and minimizing costs to ratepayers. 

Parties to the proceeding have the opportunity to file comments on the proposal before the CPUC votes on the matter. The first opportunity for the CPUC's Commissioners to vote on the proposal is at the CPUC's December 14, 2017, Voting Meeting in San Francisco.

 

The proposal is available on our website.  

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