PG&E is charging ratepayers $723 million to keep Diablo Canyon open. Should it?
By Stephanie Zappelli, The Tribune (SanLuisObispo.com)
Published on August 31, 2025
Orange poppies along the Point Buchon Trail near the Diablo Canyon Power Plant. John Lindsey
Two anti-nuclear groups are fighting PG&E’s plan to charge ratepayers $723 million for the cost of operating the Diablo Canyon nuclear power plant past its original closure dates.
In 2022, the state Legislature directed PG&E to keep the power plant open past its scheduled closure dates of 2024 for Unit 1, and Aug. 26 for Unit 2, to support the state’s electricity reliability and reduce greenhouse gas emissions.
In December, the California Public Utilities Commission approved PG&E’s application to charge ratepayers for the cost of the power plant’s extended operations incurred from Sept. 1, 2023, through the end of 2025.
But the Alliance for Nuclear Responsibility and Mothers for Peace banded together to fight PG&E’s plan to pass the cost on to customers.
On Aug. 22, the two groups filed an appeal in California’s Second District Court of Appeal against the commission’s decision to allow PG&E to charge ratepayers the $732 million.
The groups argued that the commission did not analyze the “prudency and cost-effectiveness” of keeping the power plant running as required by state law, the petition said. They asked the court to throw out the decision, then require the commission to consider whether it makes financial sense to keep the power plant open.
Mothers for Peace vice president Linda Seeley said she’s concerned about PG&E’s ratepayers, who face another rate hike in January.
“Rates in California are the highest in the continental U.S.,” she told The Tribune. “This is a bleeding wound, basically. It’s not going to stop for California ratepayers.”
PG&E, however, supported the commission’s decision.
“As our state works toward a 100% clean energy grid, keeping Diablo Canyon running helps the state meet its climate goals, avoids power shortages and saves customers money,” the utility company said in a statement.
The California Public Utilities Commission declined to comment because the lawsuit is ongoing.
Do customers see the charge on their utility bills?
The $723 million includes the cost of extended operations that isn’t covered by the revenue PG&E earns from selling electricity. PG&E started adding the cost to its customer’s utility bills on Jan. 1, and it will be included on each bill through the end of 2025, the utility company said.
The charge doesn’t appear as a separate line item on each customer’s electricity bill. Instead, it is included in the Public Purpose Program fee on the bill, PG&E said. “For a typical PG&E customer not receiving a discounted rate, this amounts to about $3.21 per month on their 2025 bill,” PG&E said in a statement. “If final costs end up being lower than expected, the difference will be credited back to customers.”