Shortly after Diablo Canyon Nuclear Power Plant received official clearance to operate until 2030, a report released by UC Santa Barbara indicated that customers may be overpaying to keep it running.
The plant’s operators, Pacific Gas & Electric (PG&E), originally planned to retire the plant’s two nuclear reactors by 2025. But the state granted the plant an extension in 2022 to allow it to keep operating until 2030, based on concerns that shutting off a power source that provides 8 percent of California' s electricity — without other clean energy replacements — would lead to power shortages, especially during heat waves.
The utility company needed extra funds to extend the plant’s lifetime, so it sought a $1.4 billion loan from the state legislature under the assumption that it would be paid back with federal grant money. Additional ratepayer fees were added on top of that.