Key Metrics
4.2
Heat Index-
Impact LevelLow
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Scope LevelNational
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Last Update2025-08-01
Key Impacts
Positive Impacts (2)
Negative Impacts (2)
Event Overview
California regulators have finalized a controversial statewide fee to keep the Diablo Canyon nuclear plant operational until 2030. The fee, managed by Pacific Gas & Electric (PG&E), has sparked criticism for lacking oversight, with concerns it could become a slush fund. PG&E argues the fee, enabled by bipartisan legislation, should not be restricted. The plant, supplying 8% of California's energy and 17% of its carbon-free power, was extended to ensure energy security amid renewable energy transitions. Critics, including consumer advocates, oppose the lack of scrutiny.
Collect Records
California Regulators Finalize Controversial Fee to Keep Diablo Canyon Nuclear Plant Operating
California regulators are set to conclude a three-year effort to keep the Diablo Canyon nuclear plant, the state's only remaining nuclear facility, operational. The final step involves determining how Pacific Gas & Electric (PG&E), the plant's owner, must spend and report the use of a controversial statewide fee designed to keep the plant open. Critics, including consumer and nuclear safety advocates, argue that the fee could function as an annual slush fund of hundreds of millions of dollars for PG&E, potentially benefiting shareholders without sufficient oversight. Matthew Freedman, a lawyer for The Utility Reform Network, criticized the California Public Utilities Commission (CPUC) for its reluctance to impose stricter scrutiny, stating, "They're going to let PG&E do what it wants."
PG&E contends that state regulators lack the authority to enforce the level of oversight demanded by critics and asserts that the fee, enabled by bipartisan legislation, should not be restricted in its use. The utility argues that spending the fee on other approved areas beyond Diablo Canyon could help control costs for customers. Originally slated for closure in 2023 due to economic reasons, Diablo Canyon's operations were extended until 2030 to ensure energy security during California's transition to renewable energy. This decision followed heat-related blackouts in 2021 and a subsequent state report highlighting the inadequacy of renewable energy to meet California's needs. Governor Gavin Newsom signed the bill into law in 2022.
Diablo Canyon currently supplies approximately 8% of California's total energy and 17% of its carbon-free energy. The legislation allowing PG&E to charge customers a fee for the plant's energy production was unusual, as it bypassed the CPUC's typical ratemaking process. The fee was justified on the grounds that Diablo Canyon benefits the entire state. However, the lack of detailed oversight has raised concerns about transparency and accountability.