PG&E is seeking 20-year license extensions for each unit to ensure the long term availability of a valuable source of clean, affordable and reliable electricity for more than three million Northern and Central Californians.

Replacing Diablo Canyon’s more than 18,000 gigawatt-hours of electricity annually would require California residents and businesses to invest in additional energy infrastructure. By not extending Diablo Canyon's licenses, it would remove an existing clean, safe, affordable and reliable source of electricity.

While the licensing process is clearly defined, the time required to complete this process is not easy to predict. For that reason, we believe it is prudent to initiate the process now to assure we will have sufficient time to meet our obligations of providing reliable, affordable and clean power.

Most U.S. nuclear power plants, like Diablo Canyon, received an initial 40-year operating license from the NRC. Many nuclear plant owners across the country are seeking a license extension for their sites for several reasons:

• Unlike the volatile price spikes for fossil fuels (such as oil, coal or natural gas), the price of nuclear fuel is quite stable;
• Nuclear power plants emit almost zero greenhouse gasses when producing electricity;
• Nuclear power plants generate large amounts of electricity on a relatively small footprint when compared to the large amounts of property needed for solar or wind farms, and do so 24 hours a day, 7 days a week;
• Nuclear power plants can easily run for another 20 years, as most have replaced many of their site’s major components over the past few years – for example, Diablo Canyon’s steam generator and reactor vessel head replacement projects.

First, PG&E submitted an application to the NRC for license extension. The application includes general, environmental and technical information in compliance with federal regulations. The public will be given ample opportunities to comment on the application and share their thoughts with the Commission throughout this multi-year open and transparent process.

The NRC staff then conducts an extensive top-to-bottom safety and environmental review consisting of thousands-of-hours of analysis and review comprising all critical systems throughout the site.

In the safety review process, there are a number of steps including a thorough review of the application's safety sections, an informal public meeting, and an audit of the plant's management programs and inspections.

For the environmental review, the NRC will conduct public meetings, site audits and prepare an environmental impact statement, which includes public comments.

For more information on the license extension process, you can visit the NRC at www.nrc.gov.

The licenses expire in 2024 and 2025 respectively for units 1 and 2. Seeking license extension is a multi-year process; yet, this federal procedure will not stop California’s increasing demand for electricity and the rapidly approaching deadline for reaching the state’s ambitious greenhouse gas reduction goals.

In 2007, the California Public Utilities Commission concluded it was prudent to know at least 10 years in advance, if 2,200 megawatts of capacity would need to be replaced in order to allow sufficient time for its resource planning purposes.

We believe Diablo Canyon will remain an essential part of the company’s power portfolio, benefitting our customers for an additional 20 years beyond its current operating licenses. And we believe investing in the development and expansion of new sources of clean power will complement the state’s current fleet of nuclear power plants.

Although the energy mix that will be in place after Diablo Canyon’s current licenses have expired has yet to be determined, extending Diablo Canyon’s licenses for another 20 years through 2044 and 2045 for units 1 and 2 respectively, will help ensure California will be able to meet the state’s future energy demands with affordable, baseload, clean electricity, while allowing time for newer technologies to more fully develop.

Diablo Canyon provides low cost, carbon-free electricity for more than 3 million northern and central California homes.

Extending Diablo Canyon’s operating licenses for another 20 years is a necessary step toward meeting the state’s ambitious greenhouse gas reduction goals and meeting increasing energy demands in California.

In addition to providing safe, clean, affordable and reliable electricity, Diablo Canyon is a vital economic engine for San Luis Obispo, if not all of California. As a major employer and purchaser of goods and services, Diablo Canyon has a total economic impact of more than $640 million annually for San Luis Obispo County and another $100 million for the state. The more than $25 million in property taxes paid by Diablo Canyon in fiscal year 2008-2009, helped support municipalities, schools and other crucial public services.

Furthermore, at PG&E, we strive to remain good neighbors to the communities in which we work and live. Diablo Canyon is no exception. Our employees make charitable contributions in excess of $250,000 annually to the community, which funds a wide variety of school programs, senior centers and many other critical community projects.

Yet, not all of the contributions are strictly measured in dollars and cents. Many of Diablo Canyon’s employees volunteer thousands-of-hours of their personal time to after-school athletic programs, environmental organizations, churches and other community organizations.

Increasing investment in renewable energy sources with a stronger focus on efficiency are important goals, but not enough to ensure we have enough abundant and affordable electricity to power California’s massive energy infrastructure without adding significant amounts of greenhouse gasses into the environment.

Nuclear power is the only realistic option available for generating clean, baseload power, and that is why countries like United Kingdom, France, Italy, Japan and China are investing significant public funds into building their own fleets of nuclear power plants while also backing the development of alternative energy sources.

In fact, even when renewable power technologies are fully developed and ready for widespread implementation, Californians will still need an abundant supply of dependable baseload power for meeting increasing demands, minimizing severe rate increases and ensuring the reliability of the state’s electricity grid.

If Diablo Canyon is closed, San Luis Obispo County and California will lose a major source of clean, safe, affordable and reliable power, and a vital economic engine.

The plant invests $10 million to $12 million locally each year on goods and services, and in fiscal year 2008-2009, it paid more than $25 million in property taxes. This tax revenue supports municipalities, schools and other crucial public services. Without Diablo Canyon funding, these service providers will have to seek financial assistance from already strapped state and local budgets, which may lead to potential tax increases down the road.

Nuclear power plants are among the safest, most secure industrial operations in the world. At Diablo Canyon, safety remains every employee’s top priority.

Diablo Canyon and other plants in the U.S. were designed and built with redundant and multiple barriers to prevent radioactive material from escaping during normal operations and during an accident. Put simply, nuclear plants, closely monitored by the Nuclear Regulatory Commission, are some of the most secure commercial facilities in the country.

In addition to PG&E’s financial investments into upgrading the site’s infrastructure, Diablo Canyon’s operations and maintenance personnel regularly inspect equipment, analyze critical systems and review human performance – ensuring the health and welfare of site employees and communities we serve throughout the region.

In addition to PG&E’s financial investments into upgrading the site’s infrastructure, Diablo Canyon’s operations and maintenance personnel regularly inspect equipment, analyze critical systems and review human performance – ensuring the health and welfare of site employees and communities we serve throughout the region.

Yes. In fact, nuclear energy is the only source of baseload, 24/7 power that produces almost zero greenhouse gas emissions during the generation of electricity.

Diablo Canyon power adds to the region’s energy diversity, reducing dependence on a single source of electricity, such as fossil fuels that produce greenhouse gas emissions.

If California’s nuclear power plants were to cease operating, it would severely impact California’s greenhouse gas reduction goals of reaching 1990 levels by 2020.

Without clean nuclear power, we will not meet this goal.

Diablo Canyon is a pressurized water reactor. This means that water, superheated by nuclear energy and pumped under high pressure, creates steam that powers a large turbine, driving the electricity generator, producing electricity.

There are many resources available online to help you learn more about Diablo Canyon and the license extension process. Please feel free to visit the Nuclear Regulatory Commission at www.nrc.gov or call the PG&E customer call center at 1-800-PGE-5000.