PG&E Customers Will Pay Less for Power from Diablo Canyon Power Plant in 2026

On Oct. 8, 2025, PG&E filed its updated forecast for 2026 extended operations at Diablo Canyon Power Plant. This routine update occurs every October in a cost proceeding before the California Public Utilities Commission. 

The filing says that in 2026, the average residential customer receiving both energy supply and delivery from PG&E will see their monthly electric bill for Diablo Canyon extended operations decrease from $3.21 to $2.23.

The decrease is the result of changes to the Resource Adequacy market price benchmark that the commission updates every Oct. 1. The benchmark sets the cost of reliable replacement electric generation when Diablo Canyon shuts down for refueling or routine maintenance.

During these shutdowns, PG&E replaces Diablo Canyon’s reliable power with the reliable power of other power plants to ensure the electric grid remains stable. PG&E must meet state regulations on electric reliability.

This reliability requirement is called Resource Adequacy. California’s Resource Adequacy program ensures there is enough electricity on the grid so that the lights stay on 24/7/365. It also helps avoid rotating outages like the ones the state experienced in 2020 during a record heat wave, and those that Texas experienced during a major winter storm in 2021.

New benchmark will lower bills

Between Oct. 1, 2023 and Oct. 1, 2024, the Resource Adequacy market price benchmark increased by 165%.

That increase caused electric customers’ bills across California to increase as well. So, PG&E, other electricity providers and customer advocates asked the commission to revise how it sets the benchmark to reflect overall market data over a longer timeframe.

As a result of those new methods, the Resource Adequacy Market Price Benchmark fell by 70% in October 2025.

The new price benchmark will save money on bills for all statewide electric customers and continue to support the affordable cost option for Diablo Canyon’s reliability.

In addition to lowering bills next year, Diablo Canyon has other important benefits.

Diablo Canyon is California’s largest source of clean energy, providing power to more than four million Californians, or 10% of the state’s population. It also supplies nearly 20% of the state’s clean energy.

California policymakers have found it prudent and cost-effective to operate Diablo Canyon through 2030. That’s because Diablo Canyon provides needed electric reliability and supports the state’s clean energy goals.

Additionally, a recent report issued by the commission found that extending the life of Diablo Canyon beyond 2030 will deliver billions of dollars in savings to electric customers across California.

Societal benefits from the plant’s continued operations include cost benefits of $450 million annually due to avoided greenhouse gas emissions.

Its extended operations through 2030 are expected to annually reduce greenhouse-gas emissions equivalent to carbon-dioxide emissions from 1.6 million cars.

Diablo Canyon will also help the state meet higher electric demand with carbon-free energy.

Electric growth to surge

As California continues its transition to a 100% greenhouse gas-free electric grid, the California Energy Commission forecasts that by 2040, peak electricity demand will grow by more than 20 gigawatts. That’s equal to roughly nine Diablo Canyons.

PG&E estimates electricity use from data centers alone will grow by 10 gigawatts by 2035, equal to nearly five Diablo Canyons.

A July 2025 commission staff report forecasts a shortfall of about 1,500 megawatts if Diablo Canyon were not operating.