Senate Bill 846
Updated Information to Phase 1 Track 2 Schedule
What is this Rulemaking about?
The CPUC adopted Order Instituting Rulemaking (R.) 23-01-007 on January 12, 2023, to implement provisions of Senate Bill (SB) 846 requiring the CPUC to consider the potential extension of power plant operations at the PG&E owned and operated Diablo Canyon Nuclear Power Plant. Diablo Canyon Units 1 and 2 are currently licensed by the U.S. Nuclear Regulatory Commission (NRC) to operate until November 2, 2024, and August 26, 2025, respectively. As directed by SB 846, the CPUC must consider whether to extend Diablo Canyon operations by up to five years and through no later than October 31, 2029 (Unit 1), and October 31, 2030 (Unit 2).
Background
PG&E has operated Diablo Canyon, a two-unit, 2,240 megawatt nuclear power plant in San Luis Obispo County, since 1985. In 2018, the CPUC approved Decision (D.) 18-01-022, a modified settlement agreement between PG&E and nine interested parties, to retire the plant when its NRC licenses expire in 2024 and 2025. On September 2, 2022, Governor Newsom signed SB 846 into law. In December 2022, in accordance with SB 846, the CPUC approved D.22-12-005, which invalidated the CPUC’s previous retirement order for Diablo Canyon, ordered PG&E to take actions necessary to preserve the option of extended operations at Diablo Canyon, and established cost-tracking mechanisms for those extended operations.
Proceeding Schedule
This proceeding has two phases:
Phase 1, Track 1 addresses funding for the Diablo Canyon Independent Safety Committee.
- On August 10, 2023, the CPUC approved a decision on Phase 1, Track 1 issues.
Phase 1, Track 2 examines whether operations at Diablo Canyon should be extended, considers the development of cost recovery mechanisms and processes for extended operations, and whether and how to allocate the associated benefits of extended operations.
- SB 846 requires that the CPUC make a determination on extended operations by no later than December 31, 2023 (Public Utilities Code section 712.8(c)(2)(A)).
Phase 2 will consider whether PG&E should provide upfront reasonable manager showings for CPUC review and approval, determine the process for Diablo Canyon cost review and true-up to actual costs and market revenues for the prior year, and establish the process for submittal and review of an annual compensation report and spending plan. Phase 2 will not commence until Phase 1 concludes and the issues under consideration may be amended if necessary.