The US Department of Energy awarded Pacific Gas and Electric $271 million on 14 August 2026 to support extended operations at the Diablo Canyon Power Plant in California, the first payment issued under this round of the Civil Nuclear Credit Program.
Diablo Canyon produces close to 10 percent of California's total power generation. Its two units were originally scheduled to cease commercial operations by 2025. The Civil Nuclear Credit Program, created to direct federal investment toward preserving the existing US reactor fleet and the jobs attached to it, kept the plant in service.
Under the program, Pacific Gas and Electric is eligible to receive up to $1.1 billion tied to activities required to keep Diablo Canyon operating. Eligible uses include reactor component replacements, equipment upgrades and fuel procurement, along with unforeseen costs connected to extending plant operations and maintaining continued service.
The award follows regulatory action earlier in the year. In April 2026 the US Nuclear Regulatory Commission approved 20-year license extensions covering both Diablo Canyon reactors, clearing the way for operation well past the original retirement date.
Assistant Secretary for Nuclear Energy Ted Garrish said keeping Diablo Canyon online is critical to meeting California demand for affordable, reliable and secure electricity, and described the Civil Nuclear Credit Program as a means of preserving baseload generation that would otherwise leave the grid early.
The Department said the payment supports thousands of high-paying jobs in the region and helps maintain a source of firm power for the state grid. Further Civil Nuclear Credit awards are expected as the Department works through eligible applications.
Source: U.S. Department of Energy - https://www.energy.gov/ne/articles/department-energy-awards-first-civil-nuclear-credit-payment-california-power-plant