Biden proposes changes to help save California's Diablo Canyon nuclear plant

Future Uncertain For Nuclear Energy In California

David McNew/Getty Images News

The Biden administration is proposing changes requested by California Governor Gavin Newsom that will allow the state’s only remaining nuclear power plant – PG&E’s (NYSE:PCG) Diablo Canyon – to qualify for federal financial assistance, Bloomberg reported on Friday.

The Department of Energy is proposing the removal of a requirement that would have prevented the plant from obtaining a portion of $6B in funds the Biden administration is making available to rescue reactors at risk of closing early because they are losing money, according to Bloomberg.

The DoE reportedly indicated it would eliminate a requirement that a nuclear reactor applying for funds not recover more than 50% of its costs from regulated rates or contracts; the costs of Diablo Canyon are recovered through bill charges to its customers.

Newsom is reconsidering a state plan to retire Diablo Canyon in 2025 because of expected electricity shortages that could lead to blackouts.

Roy Walsh

Related post