California governor signs Diablo Canyon settlement bill

Gov. Jerry Brown signed legislation Wednesday that mandates that PG&E payout over $85 million dollars to help mitigate the closing of the Diablo Canyon Power Plant.

In January, the California Public Utilities Commission (CPUC) approved the closure of the nuclear power plant but rejected a proposed settlement in which PG&E would dole out $85 million to local government agencies as compensation for lost tax revenue. The CPUC decision upheld a ruling against the settlement by Peter V. Allen, an administrative law judge who said the compensation package hinged on a PG&E rate hike which would require ratepayers to pay for services that are funded by taxpayers.

Central Coast lawmakers Sen. Bill Monning (D-Carmel) and Assemblyman Jordan Cunningham (R-San Luis Obispo) responded to the CPUC decision by co-authoring SB 1090. The bill, which Brown has now signed into law, amends the Public Utilities Act and requires the CPUC to approve the $85 million settlement.

Additionally, the legislation requires the CPUC to approve a $350 million PG&E employee retention plan, as initially written into the settlement agreement. The CPUC had approved a smaller employee retention package of $222 million.

PG&E spokesman Blair Jones previously said the bill would result in an increase of about .2 percent to the average customer’s monthly bill. The increase would be removed from rates in 2026, Jones said.

After the governor signed SB 1090 into law, both Monning and Cunningham released statements applauding the move.

“I am extremely pleased that Governor Brown has signed SB 1090, especially given what this will mean to the community, the Diablo Canyon workforce and the future of the region,” Monning said. “By fully implementing the joint proposal under the legislation, the region will have stability and security as the transition to the closure of Diablo Canyon moves forward.”

Cuningham said the governor’s signature on the bill is a major victory for the Central Coast.

“This law will help cushion the blow to our local economy. It will bring transitionary support for the families, jobs, government organizations and schools that rely on Diablo Canyon,” Cunningham said. “I am proud to have worked with Senator Monning to build a broad coalition of bipartisan support, and I am grateful to the governor for signing it into law.”

Separately, in Washington, D.C., lawmakers have approved a bill with a clause directing the federal Department of Energy to study potential public and private funding sources for municipalities affected by the decommissioning of nuclear power plants. President Donald Trump is expected to sign the legislation.

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3 Comments about “California governor signs Diablo Canyon settlement bill”

  1. AngryTaxpayer says:

    OK….so PG&E is leaving and there will be far less tax money coming into the county as a result.

    What’s the answer? Increase the rates taxpayers pay for PG&E services to make up for the shortfall.

    Why not do this for every business that leaves SLO County? Not all of them will pay 85 million of course….but if we can make PG&E pay, what’s stopping us from making other businesses pay for leaving?

    Got a restaurant that can’t make enough to justify staying in business? No problem….pay the county 12k and you’re free to shut down.

    Got a construction company? In the near future when the next downturn in the economy comes and contractors shut down….make them each pay 20k for permission to go out of business!

    Ditto doctors, lawyers, shoe stores, grocery chains, bars, etc.

    The county never need worry about money again! Forget paying taxes on income and production…..now lets pay taxes when we don’t have income or production! The county needs the money…..

    (2) 2 Total Votes – 2 up – 0 down
    1. obispan says:

      All politics is local, ya gotta deliver, and Cunningham and Monning are doing just that. I have to vote for Cunningham over his opponent as I hear many advertisements lauding his opposition to human trafficking. I have heard nothing about this from his opponent. He must support, or at least not care about human trafficking. To laftch, the Randroid, I will be buying the property next to your house and running my pig farm and toxic waste incinerator business.

      (0) 0 Total Votes – 0 up – 0 down

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