Pacific Gas & Electric (PG&E), California’s largest utility, collects a statewide fee from ratepayers to support the continued operation of Diablo Canyon, the state’s last remaining nuclear power plant. This fee, approved by state regulators, is designed to help keep the facility running as California transitions toward renewable energy and faces rising electricity demands.
The fee has become a flashpoint in the ongoing debate over nuclear power’s role in California’s energy future. Critics question whether the fund is being used transparently and efficiently, raising concerns that it could function as a “slush fund” without strict oversight. Consumer advocacy groups and nuclear watchdogs have called for detailed reporting and accountability measures to ensure the money is spent solely on necessary operations and safety upgrades at Diablo Canyon.
State utility regulators are in the final stages of determining how PG&E must spend and report the use of this controversial fee. The process is the culmination of a three-year effort to keep Diablo Canyon open, following legislative action that extended the plant’s operating life beyond its original shutdown date. The California Public Utilities Commission recently approved hundreds of millions of dollars in ratepayer costs to cover the plant’s continued operation, with the understanding that PG&E will need to provide clear documentation on how these funds are allocated.
Supporters of the fee argue that Diablo Canyon provides critical, carbon-free electricity for millions of Californians and helps stabilize the state’s grid during periods of high demand. They contend that the plant’s value in providing reliable, low-emission power outweighs the costs, especially as California works to expand its renewable energy infrastructure.
However, opponents remain wary, pointing to past management lapses and cost overruns at the facility. They argue that without robust oversight, there is a risk that the collected fees could be diverted to cover unrelated expenses or mismanagement, rather than supporting the plant’s safe and efficient operation.
As the regulatory process concludes, the spotlight remains on PG&E to demonstrate transparency and responsible stewardship of the funds. The outcome will likely influence public trust in both the utility and California’s broader energy transition strategy.
