PG&E files proposal to shut down Diablo Canyon by 2025, fill in with additional renewables

Written By: Stratton Report
August 11, 2016


On August 11, PG&E announced that along with labor and environmental groups, it had filed with the CPUC a proposal to increase investment in energy efficiency, renewables and storage beyond current state mandates while phasing out PG&E’s production of nuclear power in California by 2025.

PG&E Electric President Geisha Williams noted:

“The members of this diverse coalition believe this joint proposal represents the most appropriate and responsible path forward. It supports the state’s energy vision and ensures the orderly replacement of nuclear power with other GHG-free resources while supporting employees and the community.”

Under the terms of this joint proposal, PG&E will retire Diablo Canyon at the expiration of its current NRC operating licenses which expire on November 2, 2024 (Unit 1), and August 26, 2025 (Unit 2).

This eight- to nine-year transition period will provide the time to replace Diablo Canyon’s energy with new GHG-free replacement resources.

As part of the joint proposal, PG&E immediately ceased any efforts on its part to renew the Diablo Canyon operating licenses, and asked the NRC to suspend consideration of the pending Diablo Canyon license renewal application. PG&E will withdraw the application upon CPUC approval of the joint proposal.

PG&E believes that implementing the proposal will have a lower overall cost than relicensing DCPP and operating it through 2044.

The joint proposal is contingent on three regulatory actions. First, that the CPUC approves the proposed plan for replacement of Diablo Canyon with greenhouse gas free resources, and agrees that any resource procurement PG&E makes will be subject to a non-bypassable cost allocation mechanism that ensures all users of PG&E’s grid pay a fair share of the costs. Second, that CPUC confirms that PG&E’s investment in DCPP will be recovered by the time the plant closes in 2025. And third, that the CPUC approves cost recovery for appropriate employee and community transition benefits.