Renewables and Energy Efficiency Replacing Nuclear Power
PG&E, along with labor and leading environmental groups have 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, and Alliance for Nuclear Responsibility.
â€œThe members of this diverse coalition believe this joint proposal represents the most appropriate and responsible path forward. It supports the stateâ€™s energy vision and ensures the orderly replacement of nuclear power with other GHG-free resources while supporting employees and the community,â€ said PG&E Electric President Geisha Williams.
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 Nov. 2, 2024 (Unit 1), and Aug. 26, 2025 (Unit 2).
This eight- to nine-year transition period will provide the time to begin the process to plan and replace Diablo Canyonâ€™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.
The joint proposal is contingent on the following important regulatory actions: Approval by the CPUC of the proposed plan for replacement of Diablo Canyon with greenhouse gas free resources. Any resource procurement PG&E makes will be subject to a non-bypassable cost allocation mechanism that ensures all users of PG&Eâ€™s grid pay a fair share of the costs. CPUC confirmation that PG&Eâ€™s investment in DCPP will be recovered by the time the plant closes in 2025. And CPUC approval of cost recovery for appropriate employee and community transition benefits.