Newsom proposes $1.4 billion loan to keep nuclear plant open


Gov. Gavin Newsom is proposing a $1.4 billion loan to PG&E to help the utility extend the life of the Diablo Canyon nuclear power plant in Avila Beach for five to 10 years, he announced on Friday.

Diablo Canyon, which produces 9% of the state’s electricity, is slated to close in 2025. The extension is “critical to ensure statewide energy system reliability” as the state moves away from fossil fuels, according to Newsom’s proposal.

California planned to produce all of its electricity from clean sources by 2045, but instead has had issues with rolling blackouts and power shortages.

“We are behind where we need to be in bringing our clean resources online to ensure that we can retire these resources,” said Ana Matosantos, cabinet secretary for Gov. Newsom.

Newsom’s proposal is now headed to the California Legislature for a decision.