By Editors of Power Engineering
Pacific Gas and Electric Company has reached an agreement that would provide $85 million in support to the San Luis Obispo County area in the wake of the Diablo Canyon Power Plant closure.
The agreement was reached with labor and environmental groups, the County of San Luis Obispo, the Coalition of Cities (Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo) and the San Luis Coastal Unified School District.
PG&E said the agreement was to ensure the region transitions smoothly to an economy without the Diablo Canyon power plant.
The San Luis Obispo County government was the lead government agency in negotiating the overall agreement with PG&E.
The $85 million payment includes a $75 million Essential Services Mitigation fund which will be distributed to the county in nine annual installments through 2025. The county will redistribute the funds to local agencies whose budgets are impacted by the inevitable decrease in tax funding, though the school district is expected to receive the bulk of the funding.
The remaining $10 million will go to an Economic Development Fund to ease local economic impacts of the closure.
Additionally, PG&E has agreed to provide funding for offsite community and local emergency preparedness and planning efforts until all spent fuel is in dry cask storage and the two nuclear reactors are fully decommissioned.
PG&E plans to retire Diablo Canyon when its operating licenses expire in 2024 and 2025. The utility noted electrical demand is expected to go down, and PG&E is committed to developing renewable energy sources.