Bill May Increase Diablo Closure Costs

17 Jan 2018

Sen. Bill Monning (D-Carmel) plans to introduce legislation to restore all or part of the $85 million in proposed mitigation funds for San Luis Obispo area communities that the California Public Utilities Commission excluded in its Jan. 11 closure decision for the Diablo Canyon nuclear plant.

Monning has not yet determined the amount or the source of the funds. He told Current he was looking at various sources, including Pacific Gas & Electric ratepayers and shareholders, the state’s general fund, and the Diablo decommissioning trust fund.

“The takeaway is that I’m very committed to protecting San Luis Obispo County and its communities, and mindful of the economic impacts of Diablo’s closure,” he stressed.

The CPUC stated that it cut the ratepayer-funded $85 million, which was proposed in a joint closure agreement between PG&E and diverse parties, because it needed legislative authorization to backfill the loss of PG&E property taxes.

Monning’s bill, which is to be introduced by the Feb. 15 legislative deadline, also may include funding for energy efficiency and/or renewable resources to replace needed power supplies after Diablo closes in 2025.

The CPUC decision also excluded a proposed provision in the joint deal to include $1.3 billion in ratepayer money for energy efficiency. Instead, the commission unanimously ruled that replacement resources are to be decided as part of its Integrated Resource Planning process.

Monning also is assessing whether to increase funds for retraining and retaining PG&E’s Diablo plant employees. The CPUC approved $227 million, while the joint agreement pushed for $352 million.

Elizabeth McCarthy

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