Dive Brief:
- Almost two months after Pacific Gas & Electric announced it would close the Diablo Canyon nuclear facility and replace its generation with renewables, storage and efficiency, the utility has formally filed a plan on how it will move ahead, the Los Angeles Times reports.
- Because it will take years to replace the nuclear plant's 2,240 MW of carbon-free power, PG&E said it intends to continue operating Diablo Canyon until the end of its licenses in 2024 and 2025.
- Since announcing its plan, the utility has hosted public outreach sessions, and said it is continuing discussions with several groups including Community Choice Aggregation providers, "with the goal of reaching potential solutions."
Dive Insight:
PG&E has formally filed its plan to replace the Diablo Canyon facility with a mix of clean energy resources, but indicated that it has not found common ground with all stakeholders just yet.
Parties to the joint proposal include an electrical workers union, Friends of the Earth, Natural Resources Defense Council and others.
"The members of this diverse coalition believe this joint proposal represents the most appropriate and responsible path forward. It supports the state's energy vision and ensures the orderly replacement of nuclear power with other GHG-free resources while supporting employees and the community," PG&E Electric President Geisha Williams said in a statement.
But "additional discussions with several select parties" are still ongoing, the utility said, including Community Choice Aggregation providers, the County of San Luis Obispo and the San Luis Coastal Unified School District.
A copy of the proposal can be found here. It formally lays out the three tranches of resources the utility intends to procure, including 2,000 gross GWh of efficiency to be installed by the end of 2024. The second group of resources includes a competitive solicitation for 2,000 GWh of carbon-free energy for delivery in 2025-2030.
The final resource set includes a voluntary 55% renewable portfolio standard - 5% above the 2030 RPS mandate in Senate Bill 350. PG&E said the commitment would start in 2031.
As part of the joint proposal, PG&E would be authorized to recover approximately $53 million dollars it spent on the license renewal process for Diablo Canyon. PG&E also requested the CPUC approve a new two-way balancing account to ensure the plant's book value is depreciated to zero and the costs are fully recovered in rates by the time Diablo Canyon ceases operations.
The plant's licenses will expire Nov. 2, 2024, and Aug. 26, 2025.
