by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
This is the first payment under the program
Pacific Gas and Electric received $271 million from the U.S. Department of Energy to ensure the ongoing operation of Diablo Canyon Power Plant, California’s last operating nuclear plant, with two reactors responsible for producing nearly 10 percent of the state’s total power generation, the DOE announced Friday.
This funding will allow the nuclear power plant to continue to provide secure power to residents, while keeping thousands of high-paying jobs in the region.
This is the first payment under the program. The funds are intended to help cover costs such as reactor component replacements, equipment upgrades, fuel procurement, and other expenses tied to keeping the plant running.
In early August, Gov. Gavin Newsom announced that he would not provide extension beyond 2030 during the remaining months of his term, and said he would leave that decision to the next administration and legislature.
The details:
The U.S. Nuclear Regulatory Commission approved 20-year extensions in April 2026, allowing federal licenses through 2044 (Unit 1) and 2045 (Unit 2). However, California state law (from the 2022 SB 846 extension that Gov. Newsom signed) currently authorizes operations only through late 2029/2030. Further extension past 2030 requires new state legislation.
