US EditionCalifornia Taxpayers Gave PG&E a Huge Loan. Its Losses Are Already Mounting
California's $1.4 billion loan to PG&E for Diablo Canyon may require forgiving $588 million due to insufficient federal funds and declining plant revenues, risking taxpayer losses.
- California Legislature approved a $1.4 billion loan to PG&E for Diablo Canyon, matched with $1.4 billion in federal revenue, last year, as Newsom's administration pushed lawmakers to support the plant.
- Seeking to tap federal support, the measure relied on the U.S. Department of Energy's Civil Nuclear Credit program to repay the loan for Diablo Canyon nuclear power plant.
- Hitting a funding gap, U.S. Department of Energy can award $1,200 million, $200 million less than the California state loan; PG&E applied for only $1,100 million.
- Amid a growing budget crisis, advocates and regulators warn that without federal support or additional revenue, the state may be required to forgive unpaid loan amounts to PG&E.
- Looking beyond federal awards, PG&E forecasts it will overspend the loan by about $157 million through next year, with water department projections highlighting spent nuclear fuel payments as a potential remedy.
17 Articles
17 Articles
Taxpayers Gave PG&E a Huge, Supposedly Safe Loan for Diablo Canyon. Losses are Already Mounting
Noozhawk republishes news articles from CalMatters on state and local policy issues that affect Santa Barbara County readers. Two weeks before the 2022 legislative session ended, Gov. Gavin Newsom’s administration came to lawmakers with a big ask: authorize a $1.4 billion state loan to keep open California’s last nuclear power plant, Diablo Canyon. The money was supposed to be a stopgap that would be fully repaid by an expected federal award. T…
Press-Telegram
California taxpayers gave PG&E a huge loan. Its losses are already mounting
By Malena Carollo | CalMatters Two weeks before the 2022 legislative session ended, Gov. Gavin Newsom’s administration came to lawmakers with a big ask: authorize a $1.4 billion state loan to keep open California’s last nuclear power plant, Diablo Canyon. The money was supposed to be a stopgap that would be fully repaid by an expected federal award. There was even a fail-safe: if the award fell short, other federal funds or profits from Diablo C…
Cal Matters
California taxpayers gave PG&E a huge, supposedly safe loan. The losses are already mounting
Gov. Gavin Newsom said federal funds would cover a $1.4 billion loan to keep Diablo Canyon open. They could fall $588 million short.
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