PG&E gets OK to keep open Diablo Canyon nuclear plant: bills will jump - The Mercury News

PG&E gets OK to keep open Diablo Canyon nuclear plant: bills may jump

OAKLAND — PG&E has won approval to keep operating the aging Diablo Canyon nuclear plant in San Luis Obispo County, a decision that one group warns could trigger higher monthly bills.

The five-member state Public Utilities Commission voted 3-0 to approve an extension of the operating license for the Diablo Canyon nuclear complex, perched near Avila Beach next to the Pacific Ocean. One commissioner was absent while another abstained.

Instead of terminating service in 2025, the plant and its reactors are poised to operate until at least 2030 as a result of the just-approved extension.

Before the vote, the state PUC heard from numerous residents of California who urged the PUC to not approve the extension of the operating license.

Those who spoke raised issues such as the age of the plant, the integrity of the containment chambers for the nuclear reactors, and the plant’s location near what one speaker called a “latticework” of earthquake faults.

Several years ago, PG&E and the PUC determined that the Diablo Canyon Power Plant plant should be phased out due to its age and rising maintenance costs.

But after those decisions were made, a series of electricity outages that included rolling blackouts and intentional interruptions of electric service over fears of wildfires prompted state government leaders to question the wisdom of taking out of service a huge generator of electricity such as Diablo Canyon.

Alarmed by the prospect of electricity shortages in California, state leaders, including Gov. Gavin Newsom, did an about-face and launched a process to keep the old nuclear complex open.

Oakland-based PG&E has estimated that the cost to keep the nuclear plant operating through 2030 could be $8.1 billion.

These costs could lead to a fresh bout of higher monthly costs for electricity services from PG&E, in the view of the Alliance for Nuclear Responsibility, an advocacy group that is critical of the Diablo Canyon operating decision.

“When it comes to foisting these billions in costs onto ratepayers, the PUC’s preferred method seems to be, spend first, ask questions later,” said David Weisman, legislative director with Alliance for Nuclear Responsibility.

The result of all this could be an additional $11.75 a month for utility bills charged by PG&E, Weisman estimated.

PG&E, however, believes it’s possible that the increase in bills could be modest or very small. The extended operations might even result in a bill credit, according to PG&E and Diablo Canyon Power Plant spokesperson Suzanne Hosn.

The higher bills could come about as a result of PG&E’s efforts to seek cost recovery from customers for the extended operations.

“PG&E will be filing cost recovery applications at the PUC annually that will address customer impacts going forward, the first of which will be filed in March of 2024,” Hosn said.

The state regulatory decision to authorize the extended operations was the outcome of a September 2022 vote by the state Legislature to approve SB 846 — a bill signed by Gov. Newsom.

The Legislature determined that extended operations of Diablo Canyon are necessary to ensure reliable electricity supplies until more green energy sources can come online.

“It is the policy of the legislature that seeking to extend the Diablo Canyon power plant’s operations for a renewed license term is prudent, cost-effective, and in the best interests of all California electricity customers,” the bill text states.

Diablo Canyon’s Unit 1 reactor is now slated to cease operations in October 2029 while the Unit 2 reactor will end its operations in October 2030.

“In line with the state’s direction, we remain focused on providing reliable, low-cost, emission-free energy to Californians, while safely operating the state’s largest clean energy producer,” PG&E and plant spokesperson Hosn said. “This has been an unprecedented journey and we’re grateful for the opportunity to answer the state’s call to ensure electrical reliability for Californians.”

Customers of San Diego Gas and Electric as well as Southern California Edison will also pay higher monthly bills because all of California would theoretically benefit from improved electric reliability.

Weisman and other critics of the PUC and PG&E believe the state regulatory agency has been too easygoing in granting PG&E the authority to raise monthly bills for customers.

“No wonder our rates are sky high,” Weisman said.