PG&E to pay local agencies more for Diablo Canyon closure

November 29, 2016

Diablo Canyon Nuclear Power PlantPG&E has upped its financial settlement offer, proposing to dole out $85 million, rather than $49.5 million, to compensate local government agencies that stand to lose tax revenue as a result of the planned closure of Diablo Canyon power plant.

In June, after announcing its plan to shut down Diablo Canyon’s two reactors in 2024 and 2025, PG&E offered to pay SLO County agencies a cumulative total of $49.5 million over a nine-year period. Six of SLO County’s seven cities then protested, arguing in a letter to the California Public Utilities Commission (PUC) that PG&E’s offer did not adequately mitigate the economic impact of the nuclear plant closing.

Grover Beach was the lone city in the county that did not participate in the protest. The holdout may have been due to Grover Beach’s somewhat awkward position of having a popularly elected mayor, John Shoals, who works a day job as a PG&E government relations representative.

On Monday, PG&E appeared to have satisfied the six protesting cities by unveiling the utility’s new settlement proposal. Also, Grover Beach is expected to receive some settlement funds, which would be funnelled through the county government.

In all, the settlement proposal would amount to $122.5 million to $147.5 million over a span of 15 to 25 years. That total includes $10 million that would go to an economic development fund.

Also included in the offer, PG&E is committing to contribute tens of millions of dollars, possibly as much as $62.5 million, toward emergency planning over the course of the full decommissioning of Diablo Canyon’s two reactors and the transfer of spent fuel to dry casks. The process could take up to 25 years.

Under the new proposal, PG&E plans to compensate local government agencies in the following manner:

San Luis Coastal Unified School District: $36.8 million

San Luis Obispo County: $3.84 million

San Luis Obispo: $1.82 million

Paso Robles: $1.15 million

Atascadero: $783,106

Pismo Beach: $767,028

Arroyo Grande: $747,422

Morro Bay: $497,472

San Luis Coastal is the agency hit hardest by the expected closure of Diablo Canyon. The power plant property taxes generate about $9.5 million annually for San Luis Coastal, or about 11 percent of the district’s total revenue.

SLO County receives the second most revenue from Diablo Canyon property taxes. PG&E pays about $8 million a year in property taxes to the county, which accounts for less than 2 percent of the county’s budget.

Though PG&E’s nuclear reactor licenses are due to expire in 2024 and 2025, the utility must still obtain regulatory approval for the closure of the power plant. The PUC is expected to hold a hearing next year on PG&E’s proposed settlement.


Radioactive isotopes cause cancer. Is profit worth cancer. Guess so!


Close that antiquated plant down!


Yea, but radioactive isotopes are also natural, EVERYWHERE, and our bodies have a mechanism for constantly repairing this damage from our natural world. Don’t live in fear. Learn.


Proof that our political system has become a bribery & auction system.


Actually it’s a mere pittance compared to the rate increases coming to pay for the “green” replacement power.

Jorge Estrada

This plant was scheduled to be closed at some point before they started to build it. Why do we let Gov charge us to close the plant? Is this something new for SLO County, close a operation and a penalty fee is required? Sadly we the public will pay the penalty as part of the PG&E’s cost of doing business if the CPUC allows these penalties to go forward. To what extent will exit penalties be required of us? Close a hotel? Close a gas station? Close a car dealership?


The title of this article should really be: “Rate Payers To Fund PG&E Payments to Local Agencies For Diablo Canyon Closure”.


So where is this PG&E $85M+ coming from? Certainly not out of PG&E’s pockets.

The Tribine published “The agreement is subject to approval by the parties affected, as well as the California Public Utilities Commission. The PUC is expected to consider it in mid-2017. The ratepayers would foot the bill for the entire cost.”

That bears repeating…….. The ratepayers would foot the bill for the entire cost!!!!

The “ratepayers” would be us. So, “the agreement is subject to approval by the parties” except those that are actually paying the tab.

What a crock!

Smells like the government(s) won another tax increase, made to look like a windfall, and PG&E gets a pat on the back for the generous contribution, which in fact is indirectly coming from us. Probably a little double dipping by the taxing authorities in there too, if the fee is buried in a rate increase, which is then taxed.

Celebrate on!!!!!

Someone tell me I’m wrong.


Can anyone say “Atlas Shrugged”?


I want to know where is John Galt




Who is John Galt? Thank you, Ayn Rand.


Yes, Ann Rand who railed against government handouts, yet helped herself to the cash, What a hypocrite.


Myself says: I want to know where is John Galt

He is in the fiction section, just like superman and the hollow earth fantasies.


ACK! We’re addicted to over-paying ourselves! What do we do?

Sorry folks but the war against bureaucracy is long over. Government will continue to grow, not shrink. They are the ones with the power to make sure.


Why is Grover Beach’s settlement all shady, being “funneled” through local government? It seems the settlements to the other cities is clear.

This whole thing seems a shady mess. Good thing I have solar. Just need Tesla to get some decent batteries for homes. Also PG &E needs to stop dictating to solar companies how many solar panels I can have on my house.


It will be interesting to see how much GB gets indirectly. I wonder if their lack of participation was part of a pre-arranged deal so Mayor Shoals wouldn’t be in the unfortunate position of having to decide publicly whether his duty to the City or his employer is greater.

Somehow though, AG did participate and their mayor, Jim Hill is also a PG&E employee. Something is not adding up here.