PG&E Responds to Public Comments on Diablo Canyon Joint Proposal
September 26 2016 - 3:30PM
Business Wire
Pacific Gas and Electric Company (PG&E) today filed with the
California Public Utilities Commission (CPUC) its response to
public comments on a joint proposal to increase investment in
energy efficiency, renewables and storage beyond current state
mandates while phasing out PG&E's production of nuclear power
in California by 2025.
The parties to the joint 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 the Alliance
for Nuclear Responsibility.
"The diverse parties behind the joint proposal, including labor
and leading environmental groups, believe it represents
the most appropriate and responsible path forward for supporting
the state's energy vision. Most importantly, it reflects our strong
commitment to supporting local employees as well as the community
in transitioning to a future without Diablo Canyon Power Plant in
operation," said Geisha Williams, president, PG&E
Electric.
"We fully understand that elements of the joint proposal
reflect important issues for the state and PG&E’s
customers. The near decade-long period ahead of us provides the
time to plan and replace Diablo Canyon's energy with new GHG-free
replacement resources. PG&E welcomes feedback on the
agreement, the opportunity to respond, and the opportunity to
continue our dialogue with stakeholders as it moves through the
CPUC review process," added Williams.
PG&E and the other parties announced the joint proposal
on June 21, 2016. In line with the company's commitment to ensuring
an open and transparent process, over the summer PG&E hosted a
workshop for groups who formally engage in the CPUC intervenor
process, as well as four information meetings in which PG&E
provided an opportunity for the public to ask questions and to
comment on the joint proposal. This feedback was represented along
with the filing of the joint proposal at the CPUC on August 11.
Parties interested in formally participating in the
state's review process of the joint proposal had the
opportunity to file comments with the CPUC on September 15.
PG&E's filing today serves as a response to these comments.
Key Elements of the Joint Proposal
Under the terms of the joint proposal, PG&E will retire
Diablo Canyon at the expiration of its current Nuclear Regulatory
Commission (NRC) operating licenses. The parties jointly propose
and support the orderly replacement of Diablo Canyon with
greenhouse gas (GHG)-free resources.
Recognizing that the procurement, construction and
implementation of a GHG-free portfolio of energy efficiency,
renewables and storage will take years, the parties recognize that
PG&E intends to operate Diablo Canyon to the end of its current
NRC operating licenses, which expire on November 2, 2024 (Unit 1),
and August 26, 2025 (Unit 2).
As part of the joint proposal, PG&E immediately ceased any
efforts on its part to renew the Diablo Canyon operating licenses,
and asked the NRC to suspend consideration of the pending Diablo
Canyon license renewal application. PG&E will withdraw the
application upon CPUC approval of the joint proposal.
PG&E does not believe long-term customer rates will increase
as a result of the proposal. That is because the company believes
it is likely that implementing the proposal will have a lower
overall cost than relicensing Diablo Canyon and operating it
through 2044. Factors affecting this include, in addition to lower
demand, declining costs for renewable power and the potential for
higher renewable integration costs if Diablo Canyon is
relicensed.
Commitment to Employees and the Community
The parties to the agreement are jointly committed to supporting
a successful transition for Diablo Canyon employees and the
community.
PG&E's Diablo Canyon Retention Program will provide, among
other things, incentives to retain employees during the remaining
operating years of the plant, a retraining and development program
to facilitate redeployment of a portion of plant personnel to the
decommissioning project or other positions within the company, and
severance payments upon the completion of employment. PG&E has
reached agreement on these benefits with its labor unions,
including International Brotherhood of Electrical Workers Local
1245, Engineers and Scientists of California Local 20, and Service
Employees' International Union United Service Workers West.
In addition, the joint proposal includes proposed payments by
PG&E to San Luis Obispo County totaling nearly $50 million. The
payments are designed to offset declining property taxes through
2025 in support of a transition plan for the county.
Additional Information
The joint proposal can be read in its entirety here.
The August 11, 2016, joint proposal filing with the
CPUC can be found here.
PG&E's response today to comments on the joint proposal can
be read here.
Additional information prepared by M.J. Bradley &
Associates, a strategic environmental consulting firm, on the joint
proposal can be accessed here.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric utilities in the United States. Based in San
Francisco, with more than 20,000 employees, the company delivers
some of the nation's cleanest energy to nearly 16 million people in
Northern and Central California. For more information, visit
pge.com and pge.com/en/about/newsroom/index.page.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160926006356/en/
PG&E CorporationBlair Jones, 805-546-3868
PG&E (NYSE:PCG)
Historical Stock Chart
From Mar 2024 to Apr 2024
PG&E (NYSE:PCG)
Historical Stock Chart
From Apr 2023 to Apr 2024