Pacific Gas and Electric received a federal credit payment of $271 million from the Department of Energy under the Civil Nuclear Credit Program, a $6 billion federal investment established in 2022 to preserve the existing US reactor fleet. The Award Cycle 1 funds cover extended operations at Diablo Canyon Unit 1. DOE said Unit 2 becomes eligible after the 2025 award year audit is complete.
The payment follows the Nuclear Regulatory Commission's April approval of 20 year operating license extensions for both Westinghouse pressurized water reactors at the San Luis Obispo County site. Diablo Canyon Unit 1 entered commercial operation in 1985 and Unit 2 in 1986. The extensions authorize operation until 2044 and 2045.
The two reactors generate a combined 18,000 gigawatt hours annually, roughly 9% of California's yearly power generation, according to the California Energy Commission. Both units had been scheduled for decommissioning in 2024 and 2025 before state legislation signed in 2022 made longer operation possible. The California Public Utilities Commission voted in December 2023 to extend the plant's life by an additional five years. Operation beyond those dates requires further state legislation.
PG&E is eligible for as much as $1.1 billion in total DOE funding tied to Diablo Canyon. Permitted uses include reactor component replacements, equipment upgrades, fuel procurement, and unforeseen costs tied to extended operations. Assistant Secretary for Nuclear Energy Ted Garrish said keeping the plant on line is critical to meeting California electricity demand and that the program helps prevent reliable generation from leaving the grid prematurely.
Source: American Nuclear Society - https://www.ans.org/news/2026-08-17/article-8298/diablo-canyon-receives-partial-civil-nuclear-credit-payment/