Utility capital spending to top $250 billion in U.S.

By Industrial Info Resources


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U.S. shareholder-owned electric utilities expect to spend about $256 billion on capital projects from 2009 through 2011, according to a recent estimate of the Edison Electric Institute (EEI).

This spending projection continues the recent torrid pace of capital expenditures by members of the EEI, an association of shareholder-owned electric plants, representing utilities that generate about 70% of the electricity used in the U.S. each year.

These utilities have dramatically increased capital outlays compared to the early years of this decade. The projected investments will be made in long-lived assets such as power generation, environmental remediation, transmission projects and distribution infrastructure. EEI spokesperson Ed Legg tells Industrial Info it was not yet possible to break down future capex spending by EEI members according to specific business segment (generation, distribution, transmission and environmental projects).

Last year EEI members spent a total of $84.2 billion on capital projects, about $2.3 billion less than the $86.5 billion of projected spending estimated in an August 2008 forecast from the group. Deferred or cancelled generation projects were a major reason for the lower-than-projected capex outlays last year, according to Legg.

But lower-than-expected spending for transmission and distribution projects, as well as the financial crisis that unfolded in late 2008, also contributed to the reduced 2008 capital spending by utilities, Legg adds.

Last year also saw a reversal of a multi-year trend of soaring construction and materials costs that had driven up the estimated cost of capital projects, the EEI states. Investments in electric generation accounted for about $30 billion, or 36%, of these utilities' actual 2008 capex investments, according to EEI. An additional $21 billion, or 24%, of overall spending went to distribution-related projects, including reliability improvements.

Environmental projects consumed $12 billion last year, while about $10 billion was invested in transmission projects, the group adds.

Legg declines to break down projected capital spending by specific electric utilities. Measured by market capitalization at the end of 2008, EEI's 10 largest members were:

• Exelon (NYSE:EXC) (Chicago, Illinois);

• The Southern Company (NYSE:SO) (Atlanta, Georgia);

• Dominion Resources (NYSE:D) (Richmond, Virginia);

• FPL Group (NYSE:FPL) (Juno Beach, Florida);

• Duke Energy (NYSE:DUK) (Charlotte, North Carolina);

• Entergy (NYSE:ETR) (New Orleans, Louisiana);

• Public Service Enterprise Group (NYSE:PEG) (Newark, New Jersey);

• FirstEnergy (NYSE:FE) (Akron, Ohio);

• PG&E (NYSE:PCG) (San Francisco, California);

• American Electric Power (NYSE:AEP) (Columbus, Ohio).

Separately, EEI members forecast spending a total of $1.5 trillion for capital projects, excluding climate-related projects, during the 2010-30 timeframe, EEI says, citing a study from consulting firm The Brattle Group.

The Brattle Group's 20-year capex forecast was compiled prior to the U.S. House of Representatives' passing the American Clean Energy and Security Act, which creates a "cap & trade" system to reduce greenhouse gas emissions in the U.S. Electric utilities will be heavily impacted by the bill, which awaits an uncertain future in the U.S. Senate, which will begin considering the energy legislation after returning from its July 4 recess.

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Enbridge Insists Storage Hub Lives On After Capital Power Pullout

Enbridge Alberta CCS Project targets carbon capture and storage in Alberta, capturing emissions from industrial emitters to advance net-zero goals, leveraging carbon pricing, regulatory support, and a hub model despite a key partner's exit.

 

Key Points

A proposed Alberta carbon capture hub by Enbridge to store industrial emissions and support net-zero targets.

✅ Seeks emitters across power, oil and gas, and heavy industry

✅ Backed by carbon pricing, regulation, and net-zero mandates

✅ Faces high capex, storage risk, and anchor-tenant uncertainty

 

Enbridge Inc., a Canadian energy giant, is digging its heels in on its proposed carbon capture and storage (CCS) project in Alberta. This comes despite the recent withdrawal of Capital Power, a major potential emitter that was expected to utilize the CCS technology. Enbridge maintains the project remains viable, but questions linger about its future viability without a cornerstone anchor.

The CCS project, envisioned as a major carbon capture hub in Alberta, aimed to capture emissions from industrial facilities and permanently store them underground. This technology has the potential to play a significant role in reducing greenhouse gas emissions and mitigating the effects of climate change, alongside grid solutions like bridging the Alberta-B.C. electricity gap that can complement decarbonization efforts.

Capital Power's decision to shelve its $2.4 billion Genesee Generating Station project, which was designed to integrate with the CCS hub, threw a wrench into Enbridge's plans. The Genesee project was expected to be a key source of emissions for capture and storage, and its status is being weighed as Ottawa advances the federal coal plan to phase out unabated coal.

Enbridge, however, remains optimistic. The company cites ongoing discussions with other potential emitters interested in utilizing the CCS technology, amid new funding signals such as the U.S. DOE's $110M for CCUS that highlight momentum. They believe the project holds significant value despite Capital Power's departure.

"We are confident in the long-term viability of the project and continue to actively engage with potential customers," said Enbridge spokesperson Rachel Giroux. "Carbon capture and storage is a critical technology for achieving net-zero emissions, and we believe there is a strong business case for our CCS project."

Enbridge's confidence hinges on several factors. Firstly, they believe there is a growing appetite for CCS technology amongst industrial facilities facing increasing pressure to reduce their carbon footprint. Regulations and carbon pricing mechanisms, including new U.S. EPA power plant rules that test CCS readiness, could further incentivize companies to adopt CCS solutions.

Secondly, Enbridge highlights the potential for capturing emissions from not just power plants but also from other industrial sectors like oil and gas production and clean hydrogen projects in Canada, where reforming processes can generate CO2. This broader application could significantly increase the captured carbon volume and strengthen the project's economic viability.

However, skepticism remains. Critics point to the high upfront costs associated with CCS development and the nascent stage of the technology. They argue that without a guaranteed stream of captured emissions, the project might not be financially sound. Additionally, the long-term safety and effectiveness of large-scale carbon storage solutions remain under scrutiny.

The success of Enbridge's CCS project hinges on attracting new emitters. Replacing Capital Power's contribution will be a significant challenge. Enbridge will need to demonstrate the project's economic viability and navigate the complex regulatory landscape surrounding CCS technology.

The Alberta government's position on CCS is crucial. While the government has expressed support for the technology, the level of financial and regulatory incentives offered will significantly impact investor confidence, especially as the IEA net-zero outlook underscores Canada's need for much more electricity. A clear and stable policy framework will be essential for attracting emitters to the project.

The future of Enbridge's CCS project remains uncertain. Capital Power's withdrawal is a setback, but Enbridge's continued commitment suggests they believe the technology holds promise. Whether they can find enough emitters to justify the project's development will be a critical test. The outcome will have significant implications for the future of CCS technology in Alberta and Canada's broader efforts to achieve net-zero emissions, including Canada-Germany clean energy cooperation that seeks to scale low-carbon fuels.

 

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Siemens Energy to unlock a new era of offshore green hydrogen production

Offshore Wind-to-Hydrogen Integration enables green hydrogen by embedding an electrolyzer in offshore turbines. Siemens Gamesa and Siemens Energy align under H2Mare to decarbonize industry, advance the Paris Agreement, and unlock scalable, off-grid renewable production.

 

Key Points

A method integrating electrolyzers into offshore wind turbines to generate green hydrogen and reduce carbon emissions.

✅ Integrated electrolyzer at turbine base for off-grid operation

✅ Enables scalable, cost-efficient green hydrogen production

✅ Supports decarbonization targets under Paris Agreement

 

To reach the Paris Agreement goals, the world will need vast amounts of green hydrogen and, with offshore wind growth accelerating, wind will provide a large portion of the power needed for its production.

Siemens Gamesa and Siemens Energy announced today that they are joining forces combining their ongoing wind-to-hydrogen developments to address one of the major challenges of our decade - decarbonizing the economy to solve the climate crisis.

The companies are contributing with their developments to an innovative solution that fully integrates an electrolyzer into an offshore wind turbine as a single synchronized system to directly produce green hydrogen. The companies intend to provide a full-scale offshore demonstration of the solution by 2025/2026. The German Federal Ministry of Education and Research, reflecting Germany's clean energy progress, announced today that the developments can be implemented as part of the ideas competition 'Hydrogen Republic of Germany'.

'Our more than 30 years of experience and leadership in the offshore wind industry, coupled with Siemens Energy's expertise in electrolyzers, brings together brilliant minds and cutting-edge technologies to address the climate crisis. Our wind turbines play a huge role in the decarbonization of the global energy system, and the potential of wind to hydrogen means that we can do this for hard-to-abate industries too. It makes me very proud that our people are a part of shaping a greener future,' said Andreas Nauen, Siemens Gamesa CEO.

Christian Bruch, CEO of Siemens Energy, explains: 'Together with Siemens Gamesa, we are in a unique position to develop this game changing solution. We are the company that can leverage its highly flexible electrolyzer technology and create and redefine the future of sustainable offshore energy production. With these developments, the potential of regions with abundant offshore wind, such as the UK offshore wind sector, will become accessible for the hydrogen economy. It is a prime example of enabling us to store and transport wind energy, thus reducing the carbon footprint of economy.'

Over a time frame of five years, Siemens Gamesa plans to invest EUR 80 million and Siemens Energy is targeting to invest EUR 40 million in the developments. Siemens Gamesa will adapt its development of the world's most powerful turbine, the SG 14-222 DD offshore wind turbine to integrate an electrolysis system seamlessly into the turbine's operations. By leveraging Siemens Gamesa's intricate knowledge and decades of experience with offshore wind, electric losses are reduced to a minimum, while a modular approach ensures a reliable and efficient operational set-up for a scalable offshore wind-to-hydrogen solution. Siemens Energy will develop a new electrolysis product to not only meet the needs of the harsh maritime offshore environment and be in perfect sync with the wind turbine, but also to create a new competitive benchmark for green hydrogen.

The ultimate fully integrated offshore wind-to-hydrogen solution will produce green hydrogen using an electrolyzer array located at the base of the offshore wind turbine tower, blazing a trail towards offshore hydrogen production. The solution will lower the cost of hydrogen by being able to run off grid, much like solar-powered hydrogen in Dubai showcases for desert environments, opening up more and better wind sites. The companies' developments will serve as a test bed for making large-scale, cost-efficient hydrogen production a reality and will prove the feasibility of reliable, effective implementation of wind turbines in systems for producing hydrogen from renewable energy.

The developments are part of the H2Mare initiative which is a lighthouse project likely to be supported by the German Federal Ministry of Education and Research ideas competition 'Hydrogen Republic of Germany'. The H2mare initiative under the consortium lead of Siemens Energy is a modular project consisting of multiple sub-projects to which more than 30 partners from industry, institutes and academia are contributing. Siemens Energy and Siemens Gamesa will contribute to the H2Mare initiative with their own developments in separate modular building blocks.

About hydrogen and its role in the green energy transition

Currently 80 million tons of hydrogen are produced each year and production is expected to increase by about 20 million tons by 2030. Just 1% of that hydrogen is currently generated from green energy sources. The bulk is obtained from natural gas and coal, emitting 830 million tons of CO2 per year, more than the entire nation of Germany or the global shipping industry. Replacing this current polluting consumption would require 820 GW of wind generating capacity, 26% more than the current global installed wind capacity. Looking further ahead, many studies suggest that by 2050 production will have grown to about 500 million tons, with a significant shift to green hydrogen already signaled by projects like Brazil's green hydrogen plant now underway. The expected growth will require between 1,000 GW and 4,000 GW of renewable capacity by 2050 to meet demand, and in the U.S. initiatives like DOE hydrogen hubs aim to catalyze this build-out, which highlights the vast potential for growth in wind power.

 

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Nunavut's electricity price hike explained

Nunavut electricity rate increase sees QEC raise domestic electricity rates 6.6% over two years, affecting customer rates, base rates, subsidies, and kWh overage charges across communities, with public housing exempt and territory-wide pricing denied.

 

Key Points

A 6.6% QEC hike over 2018-2019, affecting customer rates, subsidies, and kWh overage; public housing remains exempt.

✅ 3.3% on May 1, 2018; 3.3% on Apr 1, 2019

✅ Subsidy caps: 1,000 kWh Oct-Mar; 700 kWh Apr-Sep

✅ Territory-wide base rate denied; public housing exempt

 

Ahead of the Nunavut government's approval of the general rate increase for the Qulliq Energy Corporation, many Nunavummiut wondered how the change would impact their electricity bills.

QEC's request for a 6.6-per-cent increase was approved by the government last week. The increase will be spread out over two years, a pattern similar to BC Hydro's two-year rate plan, with the first increase (3.3 per cent) effective May 1, 2018. The remaining 3.3 per cent will be applied on April 1, 2019.

Public housing units, however, are exempt from the government's increase altogether.

The power corporation also asked for a territory-wide rate, so every community would pay the same base rate (we'll go over specific terms in a minute if you're not familiar with them). But that request was denied, even as Manitoba Hydro scaled back increases next year, and QEC will now take the next two years reassessing each community's base rate.

#google#

So, what does this mean for your home's power bill? Well, there's a few things you need to know, which we'll get to in a second.

But in essence, as long as you don't go over the government-subsidized monthly electricity usage limit, you're paying an extra 3.61 cents per kilowatt hour (kWh).

To be clear, we're talking about non-government domestic rates — basically, private homeowners — and those living in a government-owned unit but pay for their own power.

 

The basics

First, some quick terminology. The "base rate" term we're going to use (and used above) in this story refers to the community rate. As in, what QEC charges customers in every community. The "customer rate" is the rate customers actually pay, after the government's subsidy.

 

The first thing you need to know is everyone in Nunavut starts off by paying the same customer rate, unlike jurisdictions using a price cap to limit spikes.

That's because the government subsidizes electricity costs, and that subsidy is different in every community, because the base rate is different.

For example, Iqaluit's new base rate after the 3.3 per cent increase (remember, the 6.6 per cent is being applied over two years) is 56.69 cents per kWh, while Kugaaruk's base rate rose to 112.34 cents per kWh. Those, by the way, are the territory's lowest and highest respective base rates.

However, customers in both Iqaluit and Kugaaruk will each now pay 28.35 cents per kWh because, remember, the government subsidizes the base rates in every community.

Now, remember earlier we mentioned a "government-subsidized monthly electricity usage limit?" That's where customers in various communities start to pay different amounts.

As simply as we can explain it, the government will only cover so much electricity usage in a month, in every household.

Between October and March, the government will subsidize the first 1,000 kilowatt hours, and only 700 kilowatt hours from April to September. QEC says the average Nunavut home will use about 500 kilowatt hours every month over the course of a year.

But if your household goes over that limit, you're at the mercy of your community's base rate for any extra electricity you use. Homes in Kugaaruk in December, for instance, will have to pay that 122.34 cents for every extra kilowatt hour it uses, while homes in Iqaluit only have to pay 56.69 cents per kWh for its extra electricity.

That's where many Nunavummiut have criticized the current rate structure, because smaller communities are paying more for their extra costs than larger communities.

QEC had hoped — as it had asked for — to change the structure so every community pays the same base rate. So regardless of if people go over their electricity usage limits for the government subsidy, everyone would pay the same overage rates.

But the government denied that request.

 

New rate is actually lower

The one thing we should highlight, however, is the new rate after the increase is actually lower than what customers were paying in 2014.

For the past seven months, customers have been getting power from QEC at a discount, whereas Newfoundland customers began paying for Muskrat Falls during the same period, to different effect.

That's because when QEC sets its rates, it does so based on global oil price forecasts. Since 2014, the price of oil worldwide has slumped, and so QEC was able to purchase it at less than it had anticipated.

When that happens, and QEC makes more than $1 million within a six month period thanks to the lower oil prices, it refunds the excess profits back to customers through a discount on electricity base rates — a mechanism similar to a lump-sum credit used elsewhere — the government subsidy, however, doesn't change so the savings are passed on directly to customers.

Now, the 6.6 per cent increase to electricity rates, is actually being applied to the discounted base rate from the last seven months.

So again, while customers are paying more than they have been for the last seven months, it's lower than what they were paying in 2014.

Lastly, to be clear, all the figures used in this story are only for domestic non-government rates. Commercial rates and changes have not been explored in this story, given the differences in subsidy and rate application.

 

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Heathrow Airport Power Outage: Vulnerabilities Flagged Days Before Disruption

Heathrow Airport Power Outage 2025 disrupted operations with mass flight cancellations and diversions after a grid failure, exposing infrastructure resilience gaps, crisis management flaws, and raising passenger compensation and safety oversight concerns.

 

Key Points

A grid failure closed Heathrow, causing mass cancellations and diversions, exposing resilience and communication lapses.

✅ Grid fire triggered airport-wide shutdown

✅ 1,400+ flights canceled or diverted

✅ Inquiry probes resilience, communication, compensation

 

On March 21, 2025, Heathrow Airport, Europe's busiest, suffered a catastrophic power outage, similar to another high-profile outage seen at major events, that led to the cancellation and diversion of over 1,400 flights, affecting nearly 300,000 passengers and costing airlines an estimated £100 million. The power failure, triggered by a fire at an electricity substation in west London, left Heathrow with a significant operational crisis. This disruption is even more significant considering that Heathrow is one of the most expensive airports globally, which raises concerns about its infrastructure resilience and broader electricity system resilience across Europe.

In a parliamentary committee meeting, Heathrow officials admitted that vulnerabilities in the airport’s power supply were flagged just days before the outage. Nigel Wicking, Chief Executive of the Heathrow Airline Operators' Committee (HAOC), informed MPs that concerns regarding power resilience had been raised on March 15, following disruptions caused by cable thefts impacting runway lights. Despite these warnings, the airport’s management did not address the vulnerabilities urgently, even as UK net zero policies continue to reshape infrastructure planning, which ultimately led to the disastrous outage.

The airport was closed for a day, with serious consequences for not only airlines but also the surrounding community and businesses. British Airways alone faced millions of pounds in losses, and passengers experienced significant emotional distress, missing vital life events like weddings and funerals due to flight cancellations. The committee is now questioning officials from National Grid and Scottish and Southern Electricity Networks to better understand why Heathrow’s infrastructure failed, in the context of a cleaner grid following the British carbon tax that reduced coal use, how it communicated with affected parties, and what measures will be taken to compensate impacted passengers.

Heathrow’s Chief Executive, Thomas Woldbye, defended the closure decision, stating it would have been disastrous to keep the airport open under such circumstances. He noted that continuing operations would have left tens of thousands of passengers stranded and would have posed safety risks due to the failure of fire surveillance and CCTV systems. However, Wicking, representing the airlines, pointed out that Heathrow’s lack of resilience was unacceptable given the amount spent on the airport, emphasizing the need for better infrastructure, including addressing SF6 in switchgear during upgrades, and more transparent management practices.

Looking forward, the MPs intend to investigate the airport’s emergency preparedness, why the resilience review from 2018 wasn’t shared with airlines, and whether enough preventative measures were in place amid surging data demand that could strain electricity supplies. The outcome of this inquiry could have lasting effects on how Heathrow and other major airports handle their infrastructure and crisis management systems, as drought-driven hydro challenges demonstrate the wider climate stresses on power networks.

 

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IVECO BUS Achieves Success with New Hydrogen and Electric Bus Contracts in France

IVECO BUS hydrogen and electric buses in France accelerate clean mobility, zero-emission public transport, fleet electrification, and fuel cell adoption, with battery-electric ranges, fast charging, hydrogen refueling, lower TCO, and high passenger comfort in cities.

 

Key Points

Zero-emission buses using battery-electric and fuel cell tech, cutting TCO with fast refueling and urban-ready range.

✅ Zero tailpipe emissions, lower noise, improved air quality

✅ Fast charging and rapid hydrogen refueling infrastructure

✅ Lower TCO via reduced fuel and maintenance costs

 

IVECO BUS is making significant strides in the French public transportation sector, recently securing contracts for the delivery of hydrogen and battery electric buses. This development underscores the growing commitment of cities and regions in France to transition to cleaner, more sustainable public transportation options, even as electric bus adoption challenges persist. With these new contracts, IVECO BUS is poised to strengthen its position as a leader in the electric mobility market.

Expanding the Green Bus Fleet

The contracts involve the supply of various models of IVECO's hydrogen and electric buses, highlighting a strategic shift towards sustainable transport solutions. France has been proactive in its efforts to reduce carbon emissions and promote environmentally friendly transportation. As part of this initiative, many local authorities are investing in clean bus fleets, which has opened up substantial opportunities for manufacturers like IVECO.

These contracts will provide multiple French cities with advanced vehicles designed to minimize environmental impact while maintaining high performance and passenger comfort. The move towards hydrogen and battery electric buses reflects a broader trend in public transportation, where cities are increasingly adopting green technologies, with lessons from TTC's electric bus fleet informing best practices to meet both regulatory requirements and public demand for cleaner air.

The Role of Hydrogen and Battery Electric Technology

Hydrogen and battery electric buses represent two key technologies in the transition to sustainable transport. Battery electric buses are known for their zero tailpipe emissions, making them ideal for urban environments where air quality is a pressing concern, as demonstrated by the TTC battery-electric rollout in North America. IVECO's battery electric models come equipped with advanced features, including fast charging capabilities and longer ranges, making them suitable for various operational needs.

On the other hand, hydrogen buses offer the advantage of rapid refueling and extended range, addressing some of the limitations associated with battery electric vehicles, as seen with fuel cell buses in Mississauga deployments across transit networks. IVECO’s hydrogen buses utilize cutting-edge fuel cell technology, allowing them to operate efficiently in urban and intercity routes. This flexibility positions them as a viable solution for public transport authorities aiming to diversify their fleets.

Economic and Environmental Benefits

The adoption of hydrogen and battery electric buses is not only beneficial for the environment but also presents economic opportunities. By investing in these technologies, local governments can reduce operating costs associated with traditional diesel buses. Electric and hydrogen buses generally have lower fuel costs and require less maintenance, resulting in long-term savings.

Furthermore, the transition to cleaner buses can help stimulate local economies. As cities invest in electric mobility, new jobs will be created in manufacturing, maintenance, and infrastructure development, such as charging stations and hydrogen fueling networks, including the UK bus charging hub model, which supports large-scale operations. This shift can have a positive ripple effect, contributing to overall economic growth while fostering a cleaner environment.

IVECO BUS's Commitment to Sustainability

IVECO BUS's recent successes in France align with the company’s broader commitment to sustainability and innovation. As part of the CNH Industrial group, IVECO is dedicated to advancing green technologies and reducing the carbon footprint of public transportation. The company has been at the forefront of developing environmentally friendly vehicles, and these new contracts further reinforce its leadership position in the market.

Moreover, IVECO is investing in research and development to enhance the performance and efficiency of its electric and hydrogen buses. This commitment to innovation ensures that the company remains competitive in a rapidly evolving market while meeting the changing needs of public transport authorities.

Future Prospects

As more cities in France and across Europe commit to sustainable transportation, including initiatives like the Berlin zero-emission bus initiative, the demand for hydrogen and battery electric buses is expected to grow. IVECO BUS is well-positioned to capitalize on this trend, with a diverse range of products that cater to various operational requirements.

The successful implementation of these contracts will likely encourage other regions to follow suit, paving the way for a greener future in public transportation. As IVECO continues to innovate and expand its offerings, alongside developments like Volvo electric trucks in Europe, it sets a precedent for the industry, illustrating how commitment to sustainability can drive business success.

 

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Should California classify nuclear power as renewable?

California Nuclear Renewable Bill AB 2898 seeks to add nuclear to the Renewables Portfolio Standard, impacting Diablo Canyon, PG&E compliance, carbon-free targets, and potential license extensions while addressing climate goals and natural gas reliance.

 

Key Points

A bill to add nuclear to California's RPS, influencing Diablo Canyon, PG&E planning, and carbon-free climate targets.

✅ Reclassifies nuclear as renewable in California's RPS.

✅ Could influence Diablo Canyon license extension and ownership.

✅ Targets carbon-free goals while limiting natural gas reliance.

 

Although he admits it's a long shot, a member of the California Legislature from the district that includes the Diablo Canyon nuclear plant has introduced a bill that would add nuclear power to the state's list of renewable energy sources.

"I think that nuclear power is an important component of generating large-scale electricity that's good for the environment," said Jordan Cunningham, R-San Luis Obispo. "Without nuclear as part of the renewable portfolio, we're going to have tremendous difficulty meeting the state's climate goals without a significant cost increase on electricity ratepayers."

Established in 2002, California's Renewables Portfolio Standard spells out the power sources eligible to count toward the state's goals to wean itself of fossil fuels. The list includes solar, wind, biomass, geothermal, small hydroelectric facilities and even tidal currents. The standard has been updated, currently calling for 60 percent of California's electricity to come from renewables by 2030 and 100 percent from carbon-free sources by 2045, even as some analyses argue net-zero emissions may be difficult to achieve without nuclear power.

Nuclear power is not part of the portfolio standard and Diablo Canyon — the only remaining nuclear plant in California — is scheduled to stop producing electricity by 2025, even as some Southern California plant closures face postponement to maintain grid reliability.

Pacific Gas & Electric, the operators of Diablo Canyon, announced in 2016 an agreement with a collection of environmental and labor groups to shut down the plant, often framed as part of a just transition for workers and communities. PG&E said Diablo will become uneconomical to run due to changes in California's power grid — such as growth of renewable energy sources, increased energy efficiency measures and the migration of customers from traditional utilities to community choice energy programs.

But Cunningham thinks the passage of Assembly Bill 2898, which he introduced last week, — as innovators like Bill Gates' mini-reactor venture tout new designs — could give the plant literally a new lease on life.

"If PG&E were able to count the power produced (at Diablo) toward its renewable goals, it might — I'm not saying it will or would, but it might — cause them to reconsider applying to extend the operating license at Diablo," Cunningham said.

Passing the bill, supporters say, could also make Diablo Canyon attractive to an outside investor to purchase and then apply to the Nuclear Regulatory Commission for a license extension.

But nuclear power has long generated opposition in California and AB 2898 will face long odds in Sacramento, and similar efforts elsewhere have drawn opposition from power producers as well. The Legislature is dominated by Democrats, who have expressed more interest in further developing wind and solar energy projects than offering a lifeline to nuclear.

And if the bill managed to generate momentum, anti-nuclear groups will certainly be quick to mobilize, reflecting a national energy debate over Three Mile Island and whether to save struggling plants.

When told of Cunningham's bill, David Weisman, outreach coordinator for the Alliance for Nuclear Responsibility, said flatly, "Diablo Canyon has become a burdensome, costly nuclear white elephant."

Critics say nuclear power by definition cannot be considered renewable because it leaves behind waste in the form of spent nuclear fuel that then has to be stored, while supporters point to next-gen nuclear designs that aim to improve safety and costs. The federal government has not found a site to deposit the waste that has built up over decades from commercial nuclear power plants.

Even though Diablo Canyon is the only nuclear plant left in the Golden State, it accounts for 9 percent of California's power mix. Cunningham says if the plant closes, the state's reliance on natural gas — a fossil fuel — will increase, pointing to what happened when the San Onofre Nuclear Generating Station closed.

In 2011, the final full year operations for San Onofre, nuclear accounted for 18.2 percent of in-state generation and natural gas made up 45.4 percent. The following year, nuclear dropped to 9.3 percent and gas shot up to 61.1 percent of in-state generation.

"If we're going to get serious about being a national leader as California has been on dealing with climate change, I think nuclear is part of the answer," Cunningham said.

But judging from the response to an email from the Union-Tribune, PG&E isn't exactly embracing Cunningham's bill.

"We remain focused on safely and reliably operating Diablo Canyon Power Plant until the end of its current operating licenses and planning for a successful decommissioning," said Suzanne Hosn, a PG&E senior manager at Diablo Canyon. "The Assemblyman's proposal does not change any of PG&E's plans for the plant."

Cunningham concedes AB 2898 is "a Hail Mary pass" but said "it's an important conversation that needs to be had."

The second-term assemblyman introduced a similar measure late last year that sought to have the Legislature bring the question before voters as an amendment to the state constitution. But the legislation, which would require a two-thirds majority vote in the Assembly and the Senate, is still waiting for a committee assignment.

AB 2898, on the other hand, requires a simple majority to move through the Legislature. Cunningham said he hopes the bill will receive a committee assignment by the end of next month.
 

 

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