Concerns Mount Over Potential Doubling of PG&E’s Diablo Canyon Power Plant Costs

The decision to keep the aging Diablo Canyon Nuclear Power Plant operational for an additional five years may result in a significantly higher cost than initially estimated by PG&E, as experts have pointed out. Despite the planned closure date of 2025, Governor Gavin Newsom made a deal with the utility company two years ago to extend the plant’s operation due to California’s power grid facing extreme stress during a record-breaking heatwave.

In a bid to support the extension of Diablo Canyon’s lifespan, the state provided PG&E with a loan of $1.4 billion, with the expectation of recovering the amount through a federal grant. The total cost of prolonging the plant’s operation is projected to be around $5 billion. However, critics have expressed concerns that the federal grant may only cover half of the loan, leaving taxpayers and customers responsible for the remaining three-quarters of a billion dollars.

Investigative reporter Jaxon Van Derbeken has delved deeper into the financial implications of keeping Diablo Canyon open in a video report, shedding light on the potential consequences of the decision. With uncertainties surrounding the funding sources and the actual costs involved, there is a looming question of whether another rate hike by PG&E could be on the horizon to offset the financial burden associated with the plant’s extended operation.

As discussions continue regarding the future of Diablo Canyon and the financial obligations tied to its prolonged operation, stakeholders are closely monitoring the developments to assess the impact on both taxpayers and ratepayers. The complexity of the situation underscores the need for transparency and accountability in managing the costs and risks associated with nuclear power plant operations, highlighting the importance of informed decision-making in safeguarding the interests of all parties involved.