PG&E, labor and environmental groups file Diablo Canyon joint proposal with the CPUC

Source: Pacific Gas and Electric Company

PG&E, along with labor and leading environmental groups, filed with the CPUC a joint proposal to increase investment in energy efficiency, renewables and storage beyond current state mandates while phasing out PG&E’s production of nuclear power in California by 2025.

Pacific Gas and Electric Company (PG&E), along with labor and leading environmental groups, today filed with the California Public Utilities Commission (CPUC) a joint proposal to increase investment in energy efficiency, renewables and storage beyond current state mandates while phasing out PG&E’s production of nuclear power in California by 2025.

The parties to the joint proposal are:

PG&E
International Brotherhood of Electrical Workers Local 1245
Coalition of California Utility Employees
Friends of the Earth
Natural Resources Defense Council
Environment California
Alliance for Nuclear Responsibility

“The members of this diverse coalition believe this joint proposal represents the most appropriate and responsible path forward. It supports the state’s energy vision and ensures the orderly replacement of nuclear power with other GHG-free resources while supporting employees and the community,” said PG&E Electric President Geisha Williams.

PG&E and the other parties announced the joint proposal on June 21, 2016. Since that time, and in line with the company’s commitment to ensuring an open and transparent process, PG&E has hosted a workshop for groups who formally engage in the CPUC intervenor process, as well as four public information meetings in which PG&E provided an opportunity for the public to ask questions and to comment on the joint proposal.

Additional discussions with several select parties, including Community Choice Aggregation providers, the County of San Luis Obispo and the San Luis Coastal Unified School District have also occurred, and will continue with the goal of reaching potential solutions.

Key Elements of the Joint Proposal

Under the terms of this joint proposal, PG&E will retire Diablo Canyon at the expiration of its current Nuclear Regulatory Commission (NRC) operating licenses. The parties will jointly propose and support the orderly replacement of Diablo Canyon with GHG-free resources.

Recognizing that the procurement, construction and implementation of a greenhouse gas free portfolio of energy efficiency, renewables and storage will take years, the parties recognize that PG&E intends to operate Diablo Canyon to the end of its current NRC operating licenses, which expire on November 2, 2024 (Unit 1), and August 26, 2025 (Unit 2).

This eight- to nine-year transition period will provide the time to begin the process to plan and replace Diablo Canyon's energy with new GHG-free replacement resources.

As part of the joint proposal, PG&E immediately ceased any efforts on its part to renew the Diablo Canyon operating licenses, and asked the NRC to suspend consideration of the pending Diablo Canyon license renewal application. PG&E will withdraw the application upon CPUC approval of the joint proposal.

PG&E does not believe long-term customer rates will increase as a result of the proposal. That is because the company believes it is likely that implementing the proposal will have a lower overall cost than relicensing DCPP and operating it through 2044. Factors affecting this include, in addition to lower demand, declining costs for renewable power and the potential for higher renewable integration costs if DCPP is relicensed.



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