California Lawmakers Fold in Budget Spat, Approve Gavin Newsom’s $400M Loan to Diablo Canyon

Source: Sacramento Bee  |  By Ari Plachta

California lawmakers agreed to loan Pacific Gas & Electric Co. an additional $400 million to extend the life of Diablo Canyon nuclear power plant, ceding to Gov. Gavin Newsom’s push for the loan after initially refusing to pay in a public budget spat. Newsom, who brokered a 2022 deal to extend the nuclear plant’s operations with state loans to be covered by the federal government, has argued that Diablo Canyon is critical to maintaining grid stability as the state transitions to clean energy.

“The final budget deal with the Governor represents a total capitulation to PG&E and its shareholders,” Utility Reform Network attorney Matthew Freedman wrote. “This $400 million will never be paid back to the general fund, forcing taxpayers to absorb the costs.”