California’s $1.4B “bridge loan” to keep PG&E’s Diablo Canyon nuclear plant running until 2030 was sold as a no-risk deal—federal money would cover it. But? That might not be the case. (CalMatters)
CA may be required to forgive as much as $588M, about 42% of the loan. For context: DOE’s nuclear credit program tops out at $1.2B per cycle, and PG&E only applied for $1.1B, well under the $1.4B it was set to pay back.
What happens if the funds don’t materialize? PG&E’s agreement with the state suggests it could use profits from the plant’s final year of operation…but the utility projects that costs for Diablo Canyon will outpace revenue from selling its energy on the wholesale market—potentially leaving the bill to customers.