On August 12, 2022, California Governor Gavin Newsom (D) officially proposed keeping the two units of the Diablo Canyon nuclear power plant online until 2029 and 2030, with the possibility of extending the plant’s life through 2035.[1] The 2.2 GW Diablo Canyon Power Plant is California’s only nuclear power plant and provides nearly a tenth of the state’s electrical power. In 2018, state regulators approved a plan to retire the units in 2024 and 2025. However, stakeholders have recently been exploring the benefits of keeping the plant open longer. According to the governor’s office, a limited term extension for the nuclear plant is necessary to ensure reliability as the state achieves its goal to decarbonize its grid by 2045.

The proposed legislation would direct the California Public Utilities Commission to keep the plant’s two units online through 2029 and 2030 and decide by 2026 whether to keep the plant open longer. The proposed legislation includes a $1.4 billion loan from California’s general fund to Pacific Gas & Electric (PG&E), the plant’s operator, to cover the cost of relicensing the plant. It also outlines the terms of the loan agreement, including conditions under which PG&E would have to repay the loan.

[1] https://apnews.com/article/california-legislature-gavin-newsom-climate-and-environment-4968ee9da7fd1d10ad67bfdf03950873