The California Public Utilities Commission has approved $722.6 million in ratepayer costs to cover the continued operation of the Diablo Canyon Power Plant — the state’s only functioning nuclear energy source.
The plant was scheduled to begin shutting down in November, but its lifespan was extended in a last-minute legislative deal struck by Gov. Gavin Newsom in 2022.
The extension was intended to ease California’s transition to green power and alleviate blackouts during periods of extreme heat, but now comes at a time when the energy demands of artificial intelligence and data centers are rapidly growing.
Although the plant is operated by Pacific Gas and Electric Co., the expense will be shared by customers of all three of the state’s investor-owned power companies — PG&E, Southern California Edison and San Diego Gas & Electric.
Thursday’s 4-1 approval by the governor-appointed commission provoked sharp criticism from consumer advocacy groups and nuclear power opponents.
“It’s unprecedented for the state to allow one utility to collect the costs of its generating resources from the customers of all three of the major utilities,” said Matthew Freedman, an attorney with The Utility Reform Network and the organization’s lead attorney on the Diablo case.