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

On Dec. 4, the California Public Utilities Commission approved PG&E's updated forecast for 2026 extended operations at Diablo Canyon Power Plant.

The decision will lower electric bills beginning Jan. 1  for customers of PG&E, Southern California Edison and San Diego Gas and Electric. 

For the typical PG&E residential electric customer, the monthly bill for Diablo Canyon extended operations will decrease from $3.21 to $2.23. 

The decrease is because 2026 will be the first full year of extended operations, which will bring in additional revenue from electricity to help cover Diablo Canyon’s costs.  It is also due to commission updates to the Resource Adequacy market price benchmark, which happen every year on Oct. 1. 

The benchmark sets the price for reliable backup electricity when Diablo Canyon shuts down for planned refueling or routine maintenance. Between 2023 and 2024, the benchmark rose quickly. In October 2025, the CPUC, PG&E and other utilities and industry groups worked together to cut the benchmark by more than 70%. That drop saved electric customers across the state more than $100 million.  

During these planned shutdowns, PG&E replaces Diablo Canyon’s reliable power with the reliable power of other plants to keep the electric grid 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. 

Diablo Canyon’s long-term benefits

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. In 2024 alone, estimates show that Diablo Canyon’s operations resulted in wholesale electricity cost savings of $474 million to customers across PG&E’s service area. 

What’s more, the California Public Utilities Commission estimated in a September report that extending Diablo Canyon’s operations beyond 2030 would deliver billions of dollars in savings to electric customers across California. 

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

Every day, Diablo Canyon produces enough safe, reliable and affordable clean energy to meet the needs of 4 million Californians, or 10% of the state’s population. Diablo Canyon also provides nearly 20% of California’s clean energy.  

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.