California legislators break with Gov. Newsom over loan to keep state’s last nuclear plant running

greenwich time, By MICHAEL R. BLOOD, Associated Press, Aug 15, 2024

LOS ANGELES (AP) — The California Legislature signaled its intent on Thursday to cancel a $400 million loan payment to help finance a longer lifespan for the state’s last nuclear power plant, exposing a rift with Gov. Gavin Newsom who says that the power is critical to safeguarding energy supplies amid a warming climate.

The votes in the state Senate and Assembly on funding for the twin-domed Diablo Canyon plant represented an interim step as Newsom and legislative leaders, all Democrats, continue to negotiate a new budget. But it sets up a public friction point involving one of the governor’s signature proposals, which he has championed alongside the state’s rapid push toward solar, wind and other renewable sources.

The dispute unfolded in Sacramento as environmentalists and antinuclear activists warned that the estimated price tag for keeping the seaside reactors running beyond a planned closing by 2025 had ballooned to nearly $12 billion, roughly doubling earlier projections. That also has raised the prospect of higher fees for ratepayers……………………..

The votes in the Legislature mark the latest development in a decades-long fight over the operation and safety of the plant, which sits on a bluff above the Pacific Ocean midway between Los Angeles and San Francisco…………………….

In 2016, PG&E, environmental groups and plant worker unions reached an agreement to close Diablo Canyon by 2025. But the Legislature voided the deal in 2022 at the urging of Newsom, who said the power is needed to ward off blackouts as a changing climate stresses the energy system. That agreement for a longer run included a $1.4 billion forgivable state loan for PG&E, to be paid in several installments.

California energy regulators voted in December to extend the plant’s operating run for five years, to 2030.

The legislators’ concerns were laid out in an exchange of letters with the Newsom administration, at a time when the state is trying to close an estimated $45 billion deficit. Among other concerns, they questioned if, and when, the state would be repaid by PG&E, and whether taxpayers could be out hundreds of millions of dollars if the proposed extension for Diablo Canyon falls through.

…………………………………………..The questions raised by environmentalists about the potential for soaring costs stemmed from a review of state regulatory filings submitted by PG&E, they said. Initial estimates of about $5 billion to extend the life of the plant later rose to over $8 billion, then nearly $12 billion, they said.

“It’s really quite shocking,” said attorney John Geesman, a former California Energy Commission member who represents the Alliance for Nuclear Responsibility, an advocacy group that opposes federal license renewals in California. The alliance told the state Public Utilities Commission in May that the cost would represent “by far the largest financial commitment to a single energy project the commission has ever been asked to endorse.”……….. https://www.greenwichtime.com/business/article/correction-california-s-last-nuclear-plant-story-19658633.php?fbclid=IwY2xjawEuMDlleHRuA2FlbQIxMQABHVvxRKXYzA1jZri4TZdyt4rL1rA9cxRHZHKTVFATkmwDmExIrs3feHydxA_aem_8Q7on7q9UlKUH6RZYqNx5w