The utility in charge of California’s last operating nuclear power plant on Tuesday changed its tune about the facility’s planned closure, asking the Department of Energy for extra time to apply for a federal bailout to keep it online.
Diablo Canyon Power Plant operator Pacific Gas & Electric (PG&E) “appreciates the Department of Energy’s efforts to support the continued operation of U.S. nuclear reactors through the Civil Nuclear Credit Program,” the utility told the agency in a letter dated Tuesday.
PG&E supports a proposed change to the program’s guidance suggested by California Gov. Gavin Newsom (D) that would make Diablo Canyon eligible for DOE’s first round of bailouts, the letter said. DOE is currently evaluating that request, which would eliminate the program’s prohibition against funding nuclear plants that use the ratemaking scheme known as cost-of-service regulation, as Diablo Canyon does. As of Thursday morning the agency had not made any final decision.
If DOE decides to move forward with the change, PG&E’s letter said, the utility will request a 75-day extension on the agency’s existing July 5 deadline for credit applications.
PG&E’s letter marks a departure from the utility’s previous public comments about Diablo Canyon, which is currently scheduled to go offline by 2025. PG&E said as recently as June 6 that plans to shutter the plant are “full steam ahead.” Orano was scheduled to handle spent fuel management activities once the plant goes offline.
Meanwhile, a set of amendments to an energy bill working its way through the California legislature published Sunday proposed a “strategic reliability reserve fund” that could be used to extend Diablo Canyon’s life without a federal bailout.
According to the bill, the state’s Department of Water Resources could use the $75 million fund to build or operate new power plants, or pay for an “extension of the operating life of existing generating facilities planned for retirement.” Diablo Canyon fits the bill for such activities.
SB 122 is largely aimed at shoring up the reliability of California’s electrical grid by streamlining the approval process for new power plants. The bill, which was introduced in January and passed the state Senate in February, is currently under review in the legislature’s lower chamber. The measure has the backing of Gov. Gavin Newsom (D), whose office has expressed interest in recent weeks in keeping Diablo Canyon online.
Updated 06/30/2022 9:47 a.m. Eastern time with PG&E’s letter to DOE.
