The California Public Utilities Commission has approved $723 million in ratepayer costs to extend the lifespan of the Diablo Canyon Power Plant, which is the only operating nuclear power plant in California.
The extension of the Diablo Canyon Power Plant’s lifespan was a result of a last-minute legislative deal brokered by Gov. Gavin Newsom in 2022. This decision aimed to facilitate California’s transition to green energy and prevent blackouts during extreme heat events.
The big picture: The cost of the extended operations at the Diablo Canyon Power Plant ($723 million) will be shared among customers of three major investor-owned power companies in the state – PGE, Southern California Edison, and San Diego Gas & Electric.
- The approval of the ratepayer costs by the CPUC sparked criticism from consumer advocacy groups and opponents of nuclear power. Critics argue that the expense and associated risks of nuclear power make it a burdensome deal for California ratepayers.
- The extension of Diablo Canyon’s operational life is defended by Pacific Gas and Electric Co. and nuclear advocates. They argue that the plant contributes significant value to the state by providing low carbon electricity and maintaining a reliable base load of power, essential for California’s energy needs.
Go deeper: The total estimated cost of the extended operations at Diablo Canyon through 2030 is around $8.9 billion, with $12 billion in federal funding, $5 billion from selling power, and $6 billion in value to the state offsetting some of the costs.
- The approved ratepayer costs by the CPUC will cover the extended operations of both units at Diablo Canyon until December 31, 2025. The estimated cost for operating the plant during this period exceeds $13 billion, offset partly by revenue from the sale of electricity.
- Diablo Canyon remains competitive with renewable energy sources like wind and solar power, with costs of around $43.60 per megawatt-hour for operation and maintenance in extended operations through 2025.
What we’re watching: California authorities project that by 2026, the yearly cost of operating both reactors at Diablo Canyon throughout the full year will be at $75.91 per megawatt-hour.
