Decision to Close the Diablo Canyon Power Plant

On June 21, 2016, PG&E partnered with labor and environmental organizations on a joint proposal that would increase investment in energy efficiency and renewables while retiring Diablo Canyon Power Plant (DCPP) at the end of its current NRC operating licenses when they expire on November 2, 2024 (Unit 1), and August 26, 2025 (Unit 2).  The parties to the DCPP joint proposal include PG&E, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, Friends of the Earth, Natural Resources Defense Council, Environment California, California Energy Efficiency Industry Council and Alliance for Nuclear Responsibility.

PG&E’s decision to withdraw the license renewal application for DCPP was based on the determination that the continued baseload operation of the two DCPP units beyond the currently approved operating periods is not necessary to meet PG&E’s projected energy demand requirements.  This decision was also in support of the state policy to meet California future electricity needs with renewable generation resources.  This resource planning decision was approved by the California Public Utility Commission (CPUC) on January 11, 2018 (Decision 18-01-022).  In February 2018, PG&E withdrew its application to the NRC for a licensing extension.The CPUC has authorized several elements of the joint proposal, including approval to cease plant operations once the NRC operating licenses expire, and funding for employee retraining and redeployment. The CPUC also stated its intention to avoid any increase in greenhouse gas emissions resulting from the closure of DCPP.

Funding for the community impact mitigation program and full funding of the employee retention program were not approved by the CPUC.  The CPUC instead set forth that legislative authorization would be needed to approve the community impact mitigation program.  Senate Bill (SB) 1090 was introduced in the California State Legislature to meet these key remaining goals of the joint proposal. It was approved by the State Senate and State Assembly in 2018 with bipartisan support, and was signed into law by Governor Brown on September 20, 2018.  Initial payments to community organizations under SB1090 commenced in 2019.

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