Federal energy department awards $271 million for continued Diablo Canyon operations
Pacific Gas and Electric also agrees to provide county with $16.6 million
– The U.S. Department of Energy awarded Pacific Gas and Electric $271 million to support extended operations at Diablo Canyon Power Plant, the department announced Aug. 14.
The payment is the first issued through the department’s Civil Nuclear Credit Program. Diablo Canyon produces nearly 10% of California’s electricity.
In April, the U.S. Nuclear Regulatory Commission approved 20-year license extensions for the power plant’s two reactors. The two units had originally been scheduled to stop commercial operations by 2025.
“Keeping Diablo Canyon online is critical to meeting California’s growing demand for affordable, reliable, and secure electricity,” Assistant Secretary for Nuclear Energy Ted Garrish said. “The Civil Nuclear Credit Program is helping preserve this vital source of baseload power and ensuring that we don’t prematurely take reliable generation off the grid. The Department of Energy is committed to unleashing American nuclear energy and keeping facilities like Diablo Canyon operating safely and reliably for the American people.”
The federal government created the Civil Nuclear Credit Program to support the continued operation of existing nuclear power plants and preserve jobs connected to the facilities.
Pacific Gas and Electric is eligible to receive up to $1.1 billion through the program for activities needed to keep Diablo Canyon operating. The company can use the money for reactor component replacements, equipment upgrades, fuel purchases, and unforeseen costs associated with extending operations and maintaining service.
In a related funding update, state Sen. John Laird announced that Pacific Gas and Electric has agreed to provide $16.6 million directly to San Luis Obispo County. The money will help restore community funding that did not continue when Diablo Canyon’s operations were extended, according to Laird’s press secretary, Khalida Sarwari.
The agreement provides the county with two $8.3 million payments from Pacific Gas and Electric. The money will not come from state taxpayers or utility ratepayers.
With the agreement secured, Laird will no longer pursue Senate Bill 931 this year. He said he plans to continue working to address the remaining three years of funding through 2030.
