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Released December 18, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The California Public Utilities Commission (CPUC) on Thursday voted to allow Pacific Gas and Electric Company's (PG&E) (San Francisco, California) two-unit, 2,255-megawatt (MW) Diablo Canyon Nuclear Power Station to operate through 2030, instead of the previous closing date of 2025.
Earlier this year, the federal Nuclear Regulatory Commission (NRC) granted PG&E an exemption to keep the plant operating while it applies to keep the plant operating past 2025; PG&E has said it will seek permission to keep the plant operating for up to 20 years; it has until December 31 to submit its renewal application, and the NRC "is expected to evaluate the nuclear safety conditions" at the plant. The operating license for Unit 1 expires next year and the Unit 2 license expires in 2025.
In the CPUC meeting order, the commission stated the costs associated with the plan were still unknown but were expected to exceed $6 billion.
Diablo Canyon's two units began operating in the mid-1980s, and they supply up to 9% of California's electricity on any given day, according to local news media.
Last last year, California Governor Gavin Newsom (D) signed into law Senate Bill 846 (S.B. 846), which allows Unit 1 to run through October 31, 2029, and Unit 2 until October 31, 2030. Lawmakers and Newsom alike overwhelmingly agreed on the need for an extension, citing energy reliability as a main driver, following a series of blackouts as extreme heat pounded the state. For more information, see September 7, 2022, article - California Backs Life Extension for Diablo Canyon.
Earlier this year, Diablo Canyon received a lifeline from the Biden administration's $6 billion Civil Nuclear Credit (CNC) program, created by the Bipartisan Infrastructure Law of 2022, to keep both units operational. The award of up to $1.1 billion was the program's first allocation as Biden aims to keep financially challenged nuclear power plants operating. Nuclear power is a low-carbon energy source, accounting for about 52% of the nation's carbon-free electricity. For more information on the CNC program, see February 21, 2022, article - $6 Billion Program to Keep Financially Ailing Nuclear Plants Open is Now Seeking Applications.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for a detailed project report on the planned decommissioning of the plant, and click here for a plant profile.
But not everyone is thrilled about the extension. In a statement from Environmental Working Group (EWG) (Washington, D.C.), EWG President Ken Cook said, "This ill-conceived decision will further escalate financial strain on California ratepayers and extend the threat of a catastrophe at Diablo Canyon. He added: "With California's annual renewable energy additions exceeding Diablo Canyon's output, there is zero reason to keep it running."
In April, environmental group Friends of the Earth (Washington, D.C) filed a lawsuit with California state court aiming to prohibit PG&E from backing out of a 2016 agreement to close the plant by 2025, but that lawsuit was subsequently rejected. The group has since filed a lawsuit in the U.S. Court of Appeals for the Ninth Circuit after the Nuclear Regulatory Commission denied a request for a public hearing regarding an immediate shutdown of Unit 1 due to outdated inspections; oral arguments are expected in early January.
Nuclear power plant owners and operators are increasingly looking to sign power purchase agreements (PPAs) for their plant output, as such agreements can provide added value to the plant's operations. For more information on PPAs as well as two nuclear plants that have already closed, see September 20, 2023, article - Nuclear Power Purchase Agreements Take Shape in the U.S.
Another nuclear plant to receive a potential lifeline is Xcel Energy Incorporated's (NASDAQ:XEL) (Minneapolis, Minnesota) Monticello power plant in Minnesota. The Minnesota Public Utilities Commission earlier this year approved Xcel's request to expand the capacity to store spent nuclear fuel at the plant, allowing the site to operate through 2040. Subscribers can click here for the Monticello storage project report and click here for the related plant profile. For more information on this and the general state of nuclear power in the U.S., see August 29, 2023, article - Xcel Energy Ready to Extend Life of Monticello Nuclear Plant.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Earlier this year, the federal Nuclear Regulatory Commission (NRC) granted PG&E an exemption to keep the plant operating while it applies to keep the plant operating past 2025; PG&E has said it will seek permission to keep the plant operating for up to 20 years; it has until December 31 to submit its renewal application, and the NRC "is expected to evaluate the nuclear safety conditions" at the plant. The operating license for Unit 1 expires next year and the Unit 2 license expires in 2025.
In the CPUC meeting order, the commission stated the costs associated with the plan were still unknown but were expected to exceed $6 billion.
Diablo Canyon's two units began operating in the mid-1980s, and they supply up to 9% of California's electricity on any given day, according to local news media.
Last last year, California Governor Gavin Newsom (D) signed into law Senate Bill 846 (S.B. 846), which allows Unit 1 to run through October 31, 2029, and Unit 2 until October 31, 2030. Lawmakers and Newsom alike overwhelmingly agreed on the need for an extension, citing energy reliability as a main driver, following a series of blackouts as extreme heat pounded the state. For more information, see September 7, 2022, article - California Backs Life Extension for Diablo Canyon.
Earlier this year, Diablo Canyon received a lifeline from the Biden administration's $6 billion Civil Nuclear Credit (CNC) program, created by the Bipartisan Infrastructure Law of 2022, to keep both units operational. The award of up to $1.1 billion was the program's first allocation as Biden aims to keep financially challenged nuclear power plants operating. Nuclear power is a low-carbon energy source, accounting for about 52% of the nation's carbon-free electricity. For more information on the CNC program, see February 21, 2022, article - $6 Billion Program to Keep Financially Ailing Nuclear Plants Open is Now Seeking Applications.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for a detailed project report on the planned decommissioning of the plant, and click here for a plant profile.
But not everyone is thrilled about the extension. In a statement from Environmental Working Group (EWG) (Washington, D.C.), EWG President Ken Cook said, "This ill-conceived decision will further escalate financial strain on California ratepayers and extend the threat of a catastrophe at Diablo Canyon. He added: "With California's annual renewable energy additions exceeding Diablo Canyon's output, there is zero reason to keep it running."
In April, environmental group Friends of the Earth (Washington, D.C) filed a lawsuit with California state court aiming to prohibit PG&E from backing out of a 2016 agreement to close the plant by 2025, but that lawsuit was subsequently rejected. The group has since filed a lawsuit in the U.S. Court of Appeals for the Ninth Circuit after the Nuclear Regulatory Commission denied a request for a public hearing regarding an immediate shutdown of Unit 1 due to outdated inspections; oral arguments are expected in early January.
Nuclear power plant owners and operators are increasingly looking to sign power purchase agreements (PPAs) for their plant output, as such agreements can provide added value to the plant's operations. For more information on PPAs as well as two nuclear plants that have already closed, see September 20, 2023, article - Nuclear Power Purchase Agreements Take Shape in the U.S.
Another nuclear plant to receive a potential lifeline is Xcel Energy Incorporated's (NASDAQ:XEL) (Minneapolis, Minnesota) Monticello power plant in Minnesota. The Minnesota Public Utilities Commission earlier this year approved Xcel's request to expand the capacity to store spent nuclear fuel at the plant, allowing the site to operate through 2040. Subscribers can click here for the Monticello storage project report and click here for the related plant profile. For more information on this and the general state of nuclear power in the U.S., see August 29, 2023, article - Xcel Energy Ready to Extend Life of Monticello Nuclear Plant.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
