Joint Proposal for the Orderly Replacement of Diablo Canyon Power Plant with Energy Efficiency and Renewables

On June 21, 2016, PG&E announced with labor and environmental groups a proposed agreement whereby PG&E will significantly increase its use of energy efficiency and carbon-free energy resources while phasing out the Diablo Canyon nuclear power plant at the end of its current license period.  M.J. Bradley & Associates provided the parties to the joint proposal with materials, including this report, assessing and explaining the considerations and analyses that underpin the agreement.

MJB&A’s materials address how changes in state policies, the electric generation fleet, and market conditions led to the decision to phase out operations at Diablo Canyon.  The terms of the proposal are that PG&E would forego seeking NRC license renewal for the facility’s two units and would instead retire and decommission them after their operating licenses expire in 2024 and 2025.  Energy for PG&E customers now generated by Diablo Canyon would be replaced with a portfolio of zero-carbon emitting resources including added renewable power and increased efficiency measures.  The terms also include incentives and other steps to care for the workforce and the community of San Luis Obispo County.

The parties to this proposal are: PG&E, International Brotherhood of Electrical Workers Local 1245, Coalition of California Utility Employees, Friends of the Earth, Natural Resources Defense Council, Environment California and Alliance for Nuclear Responsibility.  

This report on the proposal was provided by MJB&A to the parties. An overview slideshow of the analysis is available here.