PG&E proposes to pay local communities $85 million to help adjustment after Diablo Canyon nuke shutdown

Written By: Stratton Report
November 28, 2016

PG&E

On November 28, PG&E announced a proposed agreement with labor and leading environmental groups, the County of San Luis Obispo, the cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo and the San Luis Coastal Unified School District that would provide $85 million in support for the San Luis Obispo County community.

Per the utility, the proposed agreement is intended to help transition the region over the next nine years to a post-Diablo Canyon economy. PG&E announced its intension to seek this agreement in its joint proposal to shutter the nuclear plant filed with the California PUC in August 2016.

As negotiated by PG&E, the County of San Luis Obispo and SLCUSD, a $75 million essential services mitigation fund will be created to offset the potential negative impacts to essential services provided to the community by the SLCUSD and the County. The county will redistribute the funds to local agencies whose budgets are impacted by the inevitable decrease in unitary tax funding from the power plant. The school district will receive the bulk of this funding.

PG&E also stressed that it would create a $10 million economic development fund to ease the local economic impacts of the plant’s closure, and that PG&E will ensure the continuation of funding for offsite community and local emergency preparedness and planning efforts until all spent fuel is in dry cask storage and the two nuclear reactors are fully decommissioned.

Geisha Williams, president, PG&E Electric noted:

“PG&E is privileged to be part of the Central Coast community. We’ve been here for over a century and will continue to be an active community member for decades to come, working with local leaders to sustain a strong and diverse economy. We appreciate this opportunity to partner with our County, cities and other stakeholders on this important agreement, which will greatly assist in the planning and preparation for a future without Diablo Canyon in operation. This is an important issue for all of us, and PG&E will continue to strongly advocate for supporting our community as the joint proposal moves through the state’s review process.”