GOOD. MORNING. WE'RE GOING TO
CALL THIS INFORMATION OR HEARING
TO ORDER IT'S FRIDAY, AUGUST 26
. THANK YOU, EVERYONE FOR
JOINING US, WE WILL HAVE SERIES
OF MEMBERS THAT WILL BE COMING
IN AND OUT OF THE HEARING TODAY.
THANK THOSE WHO ARE HERE. READY
TO GO. I'D LIKE TO JUST SAY
WE'RE GOING TO DISCUSS DIABLO
CANYON EXTENSION PROPOSALS
TODAY. WE'RE MEETING TODAY TO
DISCUSS TOPIC OF INCREDIBLE
IMPORTANCE TO THE PEOPLE OF THE
STATE. HOW TO KEEP THE LIGHTS
ON. KEEP PEOPLE ALIVE. EVENTS
OVER THE LAST TWO SUMMERS HAVE
PUT OUR ELECTRIC GRID THROUGH.
SIGNIFICANT PACES. AND THIS BODY
WILL BE LOOKING AT JUNE PAST
JUNE AND THE ENORMOUS ENERGY
BUDGET BILL TO TRY TO ADDRESS
SOME OF THE RELIABILITY
CHALLENGES FACING OUR GRID IN
THE VERY NEAR TERM FOR THE
ADMINISTRATION HAS BROUGHT
FORWARD ADDITIONAL PROPOSAL TO
EXTEND BY FIVE YEARS. THE
OPERATION. OF AND THE LIFE OF
LASTING RUNNING NUCLEAR POWER
PLANT LAST RUNNING NUCLEAR PLANT
IN THE STATE. IT'S NO SMALL
REQUEST. AND OUR COMMITTEE
RECOGNIZES NOT ONLY THE
CHALLENGE OF REMEMBERS WE'RE
HAVING WEIGHING THIS DECISION.
BUT WHAT IS THE PATH LOOK LIKE
MOVING FORWARD FOR ENSURING
RELIABILITY. WE ALSO WANT TO
LOOK AT WHAT ARE THE BENEFITS OF
KEEPING THIS PLANT OPEN AND
OUTWEIGHING ALL OVER THE RISKS
IN FRONT OF US. WE'VE BEEN ASKED
TO CONSIDER THE EXTENSION WITH
VERY LITTLE TIME LEFT IN OUR
LEGISLATIVE CALENDAR, SO I
APPRECIATE THAT OUR COLLEAGUES
AND OUR PANELISTS HAVE MADE SOME
TIME THIS FRIDAY TO CONVENE THIS
IMPORTANT POLICY MATTER WITH
THAT. I'D LIKE TO WELCOME OUR
PANELISTS AND WE'LL ASK KAREN
DOUGLAS. SENIOR ENERGY ADVISER,
TOMATO SANTOS, CABINET SECRETARY
OFFICE OF CALIFORNIA GOVERNOR,
YOU HAVE A NEW SOME GOT TOM
JONES, SENIOR DIRECTOR,
REGULATORY, ENVIRONMENTAL AND
REPURPOSING FOR PACIFIC GAS AND
ELECTRIC. DON ORTIZ LEG.
SUPERVISOR COUNTY OF. AND LUIS
OBISPO DISTRICT THREE. PETERSON
CHARITY CANYON INDEPENDENT
SAFETY COMMITTEE UNDER STERN.
BUSINESS REPRESENTATIVE OF I B
E. W EDWARDS SMELL HOF ADVISOR
CLEAN POWER CAMPAIGN WE HAVE
MARK TONY WITH TURN AND RENDER
SING WITH THE LEGISLATIVE
AFFAIRS OF E. D. W E D F I'M
SORRY, RENEWABLE. WHAT WAS SO
WE'LL BEGIN WITH MISS KAREN
DOUGLAS AND MISS PANAMA TO
SANTOS WELCOME. UM, THANK YOU.
CHAIRMAN GARCIA. UM. WE WERE
GOING TO BEGIN WITH A POWER
POINT THAT PROVIDE AND THEN UM,
TURN THIS OVER TO ON A MONTH TO
SANTOS. SO WITH THAT, I'M GOING
TO SHARE MY SCREEN. AND, UM. HOW
DOES THIS LOOK? UM, IT'S CLEAR
WE CAN SEE IT. WONDERFUL ALRIGHT
, SO I'M GOING TO GIVE JUST A
VERY BRIEF OVERVIEW OF THE
RELIABILITY PICTURE LOOKING OUT,
UM LOOKING OUT BETWEEN 2022 2025
TALK ABOUT WHY WE'RE CONCERNED
AND WHAT ROLE DIABLO CANYON
COULD PLAY IN HELPING US MEET
OUR RELIABILITY STANDARDS. AND
PREPARE FOR THE IMPACTS OF
CLIMATE CHANGE. SO THIS GRAPH
SHOULD BE FAMILIAR TO A LOT OF
PEOPLE, BUT I WANTED TO START
HERE. AND JUST TALK ABOUT SOME
OF THE PROBLEMS THAT WE ARE
SOLVING FOR. UM THIS IS A
PICTURE OF THE SUPPLY STACK IN
CALIFORNIA ON A SEPTEMBER EIGHT
PM EVENING. THIS IS WHEN WE HAVE
THE GREATEST CHALLENGES. UM IN
MEETING OUR DEMAND BECAUSE ON A
WARM EVENING, DEMAND CAN STILL
BE QUITE HIGH, BUT WE'RE NOT
GETTING THE BENEFIT OF ANY SOLAR
PRODUCTION. AND UM, THIS SHOWS
WHAT THE SUPPLY STACK IS
PROJECTED TO LOOK LIKE BETWEEN
2020. THROUGH 2025. AND THIS
BLUE LINE HERE REPRESENTS ARE
ONE IN 10 LOSS OF LOAD
EXPECTATION. PLANNING STANDARD.
THAT WE ARE REQUIRED. IT'S A
NATIONAL PLANNING STANDARD OF
FOR RELIABILITY THAT WERE
REQUIRED TO PLAN FOR AND AS YOU
SEE, WE'RE SHORT 1700 MEGAWATTS
THIS SUMMER. IN ABOUT PROJECTED
TO BE SURE TO ABOUT 1800
MEGAWATTS IN 2025. UM BRIEFLY,
JUST ORIENTING YOU A LITTLE
FURTHER ON THIS CHART. THIS
GREEN REPRESENTS EXISTING NON
DEMAND RESPONSE RESOURCES AND
THE REASON YOU SEE IT GO FROM A
RELATIVELY HIGH LEVEL TO A MUCH
LOWER LEVEL 20. IS THE THAT THIS
IS SHOWING THE PLANNED
RETIREMENTS OF THE LARGE ONES
THROUGH COOLING FACILITIES
BETWEEN 2023 2024, THEN THE
RETIREMENT OF THE GENERATION
FROM DIABLO CANYON HERE. UM, NOW. IN THE BEST CASE, THESE
RETIREMENT WILL BE MADE UP BY,
UM, NEW GENERATION THAT FOR
WHICH THE NEW GENERATION AND
STORAGE RESOURCES FOR WHICH THE
ISSUED, UM, IN A VERY LARGE
PROCUREMENT ORDER IN 2021, IN
ADDITION TO A SMALLER
PROCUREMENT ORDER IN 2019 THIS
GRAY REPRESENTS THE
AUTHORIZATION, UM, FOR WHICH
PROJECTS WERE AUTHORIZED BUT
HAVE NOT YET BEEN BUILT. AND SO
WHAT YOU CAN SEE FROM THIS
PICTURE IS THAT IN SOME WAYS
THIS IS A BEST CASE. BECAUSE
THIS ASSUMES THIS REPRESENTS THE
FULL VALUE OF THE AUTHORIZED BUT
NOT BUILT GENERATION. IN THE
SUPPLY STACK. UM THIS GREAT BAND
UP ABOVE. THE ONE IN 10 LINE
REPRESENTS OUR ESTIMATE OF. RISK
FROM EXTREME EVENTS FROM CLIMATE
CHANGE AND WILDFIRES. I THINK
ALL OF US ARE OBSERVING THE
WORSENING PATTERNS OF HEAT AND
DROUGHT. AND WILDFIRE AROUND THE
WORLD. UM THIS INCLUDES THE
WORST DROUGHT IN 1200 YEARS IN
THE DESERT, SOUTHWEST, IMPACTING
WATER AND ELECTRICITY SUPPLIES.
FROM THE COLORADO RIVER. AT THE
SAME TIME THAT WE'RE SEEING
PRECIPITOUS DROPS IN WATER
LEVELS IN MAJOR EUROPEAN RIVERS.
A MEGA DROUGHT IN WESTERN CHINA.
AFFECTING AGAIN, THE SUPPLY
CHAIN. PRODUCTION OF, UM
BATTERIES FROM A MANUFACTURER.
THAT IS RESPONSIBLE FOR ABOUT
80% OF THE WORLD'S BATTERY
PRODUCTION. NOT ALL IN THIS. NOT
ALL AFFECTED EQUALLY. NOT ALL
THEIR FACILITIES AFFECTED
EQUALLY IN THIS DROUGHT, BUT BUT%
VERY MUCH A NEW SUPPLY CHAIN
ISSUE. UM WE'RE SEEING
SYSTEMATIC DECREASES IN SNOWPACK
IN THE PACIFIC NORTHWEST.
UNDERMINING OVER THE LONGER TERM
GENERATING CAPACITY AND ONE OF
THE LARGEST SUPPLY REGIONS FOR
IMPORTS OF CLEAN
HYDROELECTRICITY. AND MORE. AND
SO WE DO THINK IT'S VERY
IMPORTANT FOR US TO DEVELOP THE
CAPACITY TO SECURE RELIABILITY
AS THESE EXTREME EVENTS
INCREASINGLY FORCE US TO LOOK
WELL ABOVE THIS ONE IN 10.
PLANNING STANDARD. UM SO. SO
WHEN I SAID THAT THE UM, GRAPH.
I JUST SHOWED YOU WAS THE BEST
CASE OR WHAT? WHAT WE DID WAS IN
WORKING WITH THE ENERGY AGENCIES
WHICH TRIED TO DEVELOP WHAT WE
THOUGHT OF AS A MORE REALISTIC
MIDDLE GROUND CASE. FOR WHAT
THOSE PROJECT DELAYS COULD LOOK
LIKE. AND SO WE DEVELOPED A
SCENARIO THAT ASSUMES A 40.
DELAY IN PROJECTS COMING ONLINE
IN 2023 2024. FOLLOWED BY A 20%
DELAY GOING FORWARD AND ONE OF
THE WAYS THAT YOU CAN THINK
ABOUT THAT 40% DELAY ASSUMPTION
IS THAT IT'S ACTUALLY VERY CLOSE
TO THE OBSERVED DELAYS WE HAD
HERE IN 2022. UM SO BACK WHEN
THE EAST ENERGY COMMISSION
INITIALLY CONSTRUCTED A SUPPLY
STACK OUTLOOK FOR SUMMER OF
2022. UM THE ENERGY COMMISSION
WAS ANTICIPATING OVER 4000
MEGAWATTS TO COME ONLINE AND
HELP SUPPORT THE SUMMER OF 2022-. BASED ON THAT OUTLOOK. THERE
WAS A LOT OF OPTIMISM THAT WE
WOULDN'T HAVE, UM, YOU KNOW THAT
WE WOULD HAVE PLENTY OF RESERVES
TO GO THROUGH THIS SUMMER AS IT
TURNED OUT INSTEAD OF OVER 4000
MEGAWATTS WE GOT ABOUT 2500
MEGAWATTS IN SUMMER OF 2022.
THIS REPRESENTS CLOSE TO A 40%
DROP. SO ONE WAY TO THINK ABOUT
THIS. 40% 40% AND THEN 20%
SCENARIO. IS THAT IT ASSUMES
THAT THE NEXT COUPLE OF YEARS
ARE ABOUT LIKE 2022 WAS AND THEN
THEY GET BETTER. AND IN FACT,
THE 20% DELAY IS PRETTY CLOSE TO
A AVERAGE DELAY SO. UM I ALMOST
THINK OF I REALLY THINK OF THIS
SCENARIO AS SOMEWHAT OPTIMISTIC
, TOO. BASED ON SOME OF WHAT
WE'RE HEARING IN THE
MARKETPLACE, BUT THIS IS WHAT WE
WANTED TO PRESENT. WE THINK IT'S
A VERY REASONABLE KIND OF BASE
CASE TO LOOK AT AND SO THIS
PICTURE DEPICTS MORE CLEARLY. IS
UNDER THE SCENARIO WHERE WE DO
INCORPORATE SOME LEVEL OF
PROJECT DELAYS. WE ACTUALLY DO
HAVE A SHORTFALL IN 2023 AS WELL
, AND THE SHORTFALL LOOKS BIGGER
GOING FORWARD. UM THIS BLUE LINE
ON TOP OF THESE SUPPLY STACKS
REPRESENTS EXISTING R D R R
RESOURCES, WHICH ARE A UM, FIRM
, THEIRRELIABILITY RESOURCE
THAT WE CAN COUNT ON, BUT WE
DON'T ACCESS THEM UNTIL WE ARE
IN A DECLARED ENERGY EMERGENCY.
UM SO BY THE TIME WE REACH INTO
THIS BLUE AREA HERE WE ARE
ALREADY. UM YOU KNOW, WE'VE GONE
PAST FLEX ALERT. WE ARE UM,
BRINGING INTO PLACE SOME OF THE
EMERGENCY PROGRAMS THAT WE'VE
DEVELOPED TO HELP DEAL WITH. UM
THESE ISSUES SO. THIS THIS GRAY
HERE JUST SHOWS THE ASSUMED
PROJECT BUILD WITH THIS
SCENARIO. AND UM, I THINK I'LL
JUST SHOW YOU NEXT. WHAT THIS
SCENARIO LOOKS LIKE NOW, NOT
ACROSS YEARS, BUT ACROSS HOURS
OF THE DAY. SO THIS IS A
DIFFERENT GRAPH. THAT SHOWS. UM
THIS SHOWS HOW EARLY DEMAND
ACROSS 24 HOURS OF THE DAY. UM
IN A SEPTEMBER 2025 WITHOUT
DIABLO. INCORPORATING OUR DELAYS
SCENARIO FOR BUILD OUT UM, THIS
GRAY HERE SHOWS UM, THE UM.
VALUES FOR THE PROJECTS COMING
ONLINE. AND UM, WHAT YOU SEE
HERE. FIRST OF ALL, THERE'S A
GAP. OBVIOUSLY THIS IS PART OF
THE GAP THAT WE'RE TALKING ABOUT
NET PEAK. WE ALSO WANTED TO SHOW
YOU THE GAS IN IN THE, UH IN THE
STACK, AND SO ACTUALLY RIGHT UP
HERE IN THE GREEN IS WHERE THE
GAS UM, RESOURCES ARE AND SO I
JUST WANTED TO FLIP QUICKLY SO
HERE WE PUT DIABLO CANYON ACROSS
THE BOTTOM AND BLUE AND YOU SEE
THAT IT FILLS THE GAP HERE AND
YOU SEE THAT WHAT GENERALLY GETS
PUSHED OUT OF THE SUPPLY STACK.
IS GAS AND THAT THAT'S JUST A
FUNCTION OF THE FACT THAT THIS
IS A LARGE BASE LOAD. CLEAN
ENERGY FACILITY THAT IS
DISPLACING. THE MARGINAL
RESOURCE ON OUR SYSTEM, WHICH IS
GAS AND FILLING THAT GAP HERE.
SO UM, I THINK I JUST WANTED TO
UM, SAY A FEW MORE THINGS ABOUT
THE VALUE OF HAVING A RESOURCE
ACROSS THE 24 HOURS OF THE DAY.
WE HAVE, OF COURSE, PLACED A LOT
OF EMPHASIS IN THE NEED TO
ADDRESS THIS GAP APPEAR, BUT AS
WE SEE OUR ELECTRICITY SYSTEM
EVOLVE. WE ARE VERY MUCH KEEPING
AN EYE ON NOT ONLY ON NET PEAK
NEEDS BUT ON ENERGY NEEDS MORE
BROADLY AS WE BRING MORE
BATTERIES INTO THE SYSTEM. UM,
THOSE BATTERIES NEED TO BE
CHARGED. UM AND. THE BATTERIES
THAT ARE PLACED AT UM YOU KNOW,
A LOT OF THE RESOURCES BEING
PROCURED RIGHT NOW ARE ACTUALLY
BATTERIES BEING PLACED AT
EXISTING SOLAR FACILITIES. THOSE
ARE ONLY ALLOWED TO BE CHARGED
BY THE SOLAR FACILITIES DURING
THE DAY. THEY'RE NOT ALLOWED TO
BE CHARGED BY SYSTEM POWERS. SO
UM, THAT MEANS THAT THOSE
PARTICULAR BATTERIES AREN'T
AVAILABLE TO MEET NEEDS, UM, FOR
THE MORNING RAMP. FOR EXAMPLE,
AND, UM. SO THERE IS ALWAYS THIS
CONSTANT LEVEL OF DEMAND IN THE
SYSTEM. WHEN YOU LOOK AT AH,
WHEN YOU LOOK AT THE INDEPENDENT
SYSTEM OPERATOR APPLICATION,
SHOWING YOU WHERE THE SUPPLY IS
COMING FROM A DIFFERENT TIMES A
DAY, DIFFERENT, UM MONTHS. WHAT
YOU FIND IS THAT IN GENERAL,
THERE IS THERE IS GAS RUNNING TO
SUPPORT THE SYSTEM AT A PRETTY
SIGNIFICANT AMOUNT THAT UM, EVEN
THOUGH WE CURRENTLY HAVE DIABLO
CANYON ONLINE, SO I THINK THAT
WILL THAT CONCLUDES MY
INTRODUCTION HERE, AND I WILL
TURN THIS BACK OVER TO ON A
MONTH TO SANTOS. HI, MR CHAIR
MEMBERS. THANK YOU VERY MUCH FOR
YOUR TIME, UH, REVIEWING THE
COMMITTEE REPORT. I THINK
THERE'S AH, THERE'S ONE SENTENCE
INCLUDED IN HERE THAT I THINK
VERY, REALLY WELL CAPTURES PART
OF WHY WE FIND OURSELVES IN IN
THIS POSITION AND PART OF WHY
THIS AH, THIS PROPOSAL IS BEFORE
YOU, UM IT TALKS ABOUT THE SOME
OF THE EXPERIENCES THAT WE'VE
HAD IN THE RECENT PAST AND
TALKING ABOUT THE STRESSING THE
CLOSE CALLS OF WHICH THERE ARE
ONLY TOO MANY EXAMPLES. THERE
ARE TWO OF MANY EXAMPLES
THROUGHOUT THE LAST TWO YEARS,
LED MANY ENERGY LEADERS TO
REEXAMINE OUR CURRENT PARADIGM
FOR PLANNING A RESPONDING TO
GRID RELIABILITY EVENTS AND GO
BACK TO THE DRAWING BOARD TO
CONSIDER EVERY POSSIBLE OPTION.
FOR ENSURING RELIABILITY IN THE
SUMMER OF 2022. BEYOND I THINK
THAT'S VERY MUCH WHAT THE ENERGY
AGENCIES HAVE BEEN DOING LOOKING
AT EVERY OPTION THAT IS
AVAILABLE TAKING ACTION TO
ACCELERATE ALL PROJECTS AND TO
MOVE FORWARD TO OUR, UM, FOR OUR
TRANSITION. AS WE THINK ABOUT
WHERE WE ARE A COUPLE OF THINGS
THAT I THINK BRING US TO THIS TO
THIS POSITION. ONE IS CLIMATE
CHANGE. UH AS YOU AS YOU KNOW,
BOTH THE EFFECTS OF CLIMATE
CHANGE AND THE EXTENT TO WHICH
OUR FORECAST WE'RE RELYING ON
HISTORIC INFORMATION, NOT
NECESSARILY ON OUR RECENT
REALITY, AND WHAT WE'RE SEEING
IS THAT THE PACE AT WHICH
CLIMATE CHANGE IS INCREASING
DEMAND IS FASTER THAN WE WERE
PREVIOUSLY FORECASTING. UH
SECOND ELEMENT, WHICH IS THE
POSITIVE HIS ACTIONS TO MITIGATE
CLIMATE CHANGE ACTIONS TO MOVE
IN THE DIRECTION OF THE QUEEN
TRANSITION. ARE ALSO INCREASING
THE OVERALL DEMAND. AH SECOND
PIECES. I THINK THE THERE'S
ALWAYS A DELICATE BALANCE AND
PROCUREMENT FROM TRYING TO
ENSURE THAT WE HAVE THE
NECESSARY LEVEL OF RESOURCES TO
BE ABLE TO MAINTAIN RELIABILITY
AND SUPPORT THE DEMAND,
INCLUDING INCLUDING THE
INCREASED DEMAND THAT WILL BE
THAT THE ELECTRICITY SYSTEM WILL
HAVE TO SUPPORT TO BE ABLE TO
ACHIEVE OUR GOALS OF CLEAN
TRANSITION OR OUR GOALS OF
CLEANING UP THE ECONOMY. AH FROM
A GHD STANDPOINT, SO THAT IS
THAT IS AN IMPORTANT ELEMENT,
BUT WE ALSO WANT TO MAKE SURE WE
DO NOT OVER PROCURE GIVEN THE
IMPACT ON RATEPAYERS, AND I
THINK PART OF WHAT WE SEE IS,
YOU KNOW, BASED ON THE EXTENT TO
WHICH THE MODELS UNDERSTATED THE
IMPACT OF CLIMATE CHANGE. BASED
ON SOME METHOD, A LOGICAL ISSUES
AND THE EXTENT TO WHICH WE
FOCUSED ON OUR PEAK USAGE VERSUS
THE TIME WHEN SOLAR STARTS
COMING OFF LINE. UM AND THE
IMPACTS THAT WE'RE SEEING ON THE
SUPPLY CHAIN. WE ARE. WE ARE ON
TRACK TO GET 14,500 MEGAWATTS
ONLINE, BUT THEY ARE COMING IN
AT A SLOWER PACE. AND OUR TARGET
IS A BIT UNDER WHAT ARE RECENT
ASSESSMENT SUGGESTS THAT IT'S
NECESSARY. SO IN THE CONTEXT OF
WHERE WE ARE THE IMPORTANCE TO
CONTINUE AND CONTINUE TO MOVE
FORWARD AND GET AS QUICKLY AS
POSSIBLE TOWARDS OUR CLEAN
TRANSITION, BUT DO IT IN THE
CONTEXT OF RELIABILITY BEFORE
YOU IS LEGISLATION THAT WE
BELIEVE IS NECESSARY TO CONTINUE
TO THE TO CONTINUE ACCELERATING
OUR TRANSITION AND TO DE RISK IT
BY HAVING THE OPTION TO BE ABLE
TO EXTEND THE OUTLOOK CANYON.
CLEAN RESOURCE. UM TO BE ABLE TO
MEET OUR OVERALL NEEDS
LEGISLATION DOES A COUPLE OF
THINGS ONE IS IT PROVIDES A
FUNDING MODEL TO BE ABLE TO
SUPPORT THE EXTENSION. IN THE
NEAR TERM, IT WOULD DO IT WITH A
GENERAL FUND LOAN THAT WOULD BE
UP TO THE LEVEL NEEDED. UH THIS
STRUCTURE IS DESIGNED TO NOT
ONLY KEEP THIS OPTION ON THE
TABLE AND HAVE THIS BE A VIABLE
RELIABILITY OPTION FOR OUR
STATE, BUT TO DO IT IN A WAY
THAT MAXIMIZES ACCESS OF FEDERAL
FUNDING. UM AND THUS MAKES THIS
OPTION B A LOWER COST OPTION FOR
CALIFORNIA RATEPAYERS AND
TAXPAYERS. UM SECOND IS THE
FUNDING MECHANISM TO SUPPORT THE
POWER AND GOING FORWARD BASIS.
SECOND PIECE OF LEGISLATION DOES
IS, AH IS MAKE SOME CHANGES TO
ENSURE THAT THERE IS THE REGULAR
SCRUTINY BY ALL THE REGULATORY
AGENCIES TO MAKE SURE THAT THIS
EXTENSION WOULD BE SAFE AND THAT
ANY IMPACTS ON THE ENVIRONMENT
WOULD BE MITIGATED. BUT TO DO
THAT, IN AN EXPEDITED FASHION,
UM, STILL PROTECTING PUBLIC
INPUT, BUT DOING IT QUICKLY.
GIVEN UM, GIVEN THE NEED TO BE
ABLE TO COMPLETE WHAT NORMALLY
IS SIX YEAR PROCESS IN LESS THAN
THREE YEARS. AH, SO THAT IS
ANOTHER IMPORTANT ELEMENT OF
THIS ACTION. THIRD PIECE, UH AND
ONE THAT REQUIRES, UH, THAT
REQUIRES QUICK ACTION IS
CURRENTLY PG AND E IS UNDER A
DIRECTIVE AND A SETTLEMENT THAT
THAT DOES NOT ALLOW THEM TO DO
ANY WORK ON PURSUING THIS
EXTENSION, SO THAT IS A
NECESSARY CHANGE TO BE ABLE TO
MOVE FORWARD. THERE'S A LOT OF
WORK IN SAN LUIS OBISPO COUNTY
AROUND AND THERE'S A LOT OF WORK
AROUND THE COMMISSIONING. UM AND
AROUND OTHER AND AROUND PLANNING
AND FUTURE PLANNING FOR THE
PROPERTY. IMPORTANT ELEMENTS OF
THE LEGISLATION PROVIDE SOME
CERTAINTY TO LOCAL GOVERNMENT
AROUND THE AROUND THE TREATMENT
OF FUNDS THAT THEY'VE ALREADY
RECEIVED, AS WELL AS ENSURING
THAT ANY EXTENSION OF THE
ALLOCATION IAN IS THE SHORTEST
POSSIBLE. AND THAT THE EFFORTS
TO PLAN FOR THE DECOMMISSIONING
OF THE PLANT CONTINUES UNDERWAY
AND THAT, UM, THE IMPORTANT
GOALS OF CONSERVING THE LAND AND
OTHER ELEMENTS ARE ADHERED TO.
SO MAYBE WE STOP. THEY'RE HAPPY
TO ANSWER QUESTIONS. I
APPRECIATE THE OPPORTUNITY TO
TALK WITH YOU ABOUT WHY WE THINK
THIS IS NECESSARY ACTION TO
PROTECT RELIABILITY AND TO
SUPPORT OUR QUEEN TRANSITION.
THANK THANK YOU. I'M GONNA SEE
IF THERE ARE JUST MAYBE ONE
ROUND OF QUESTIONS FOR THE FIRST
PRESENTERS AND THEN AFTER WE GO
DOWN THE LIST OF THE OTHER
PRESENTATIONS. SO IS THERE ANY
QUESTIONS DIRECTLY FOR UM SANTOS
OR KAREN DOUGLAS? YES. HMM.
THANK YOU, MR CHAIR. JUST A
COUPLE OF QUESTIONS. UM
OBVIOUSLY, I'M LOOKING AT THE
NUMBERS. WE'VE GOT 40% DELAY ON
THESE PROJECTS IN 2023 COMING
ONLINE, 20% AND 2024. YOU'VE GOT
PROJECTS THAT ARE AUTHORIZED,
BUT NOT YET BUILT, UM HOW LIKELY
AND I SAY THIS BECAUSE THIS IS
IMPORTANT IN OUR DECISION MAKING
HERE GOING FORWARD. UM WHO
OVERALL IS COORDINATING. THESE
PROJECTS GETTING ACTUALLY BUILT
, UM, I SEE TOO OFTEN AND OUR
GOVERNMENT EVERYTHING IS
SOMEWHAT SILOED, AND THERE'S A
LOT OF THINGS GOING ON, BUT BUT
NOT A LOT OF COORDINATION. IS
THERE, SOMEONE OVERSEEING A
STRATEGY TO ENSURE THAT THESE
PROJECTS ACTUALLY GET BUILT, UM
AND HOPEFULLY WITH JUST THE 40%
DELAYS AND THE 20% DELAYS.
THAT'S MY FIRST QUESTION. THE
SECOND ONE IS AND YOU LISTED AND
CHALLENGES ONE OF THEM BEING
MARKETPLACE. UNCERTAINTY I
BELIEVE IS MAYBE I MISSED. MAYBE
I MISSED IT. BUT CERTAINLY THERE
IS SOME UNCERTAINTY IN THE
MARKETPLACE IF WE IN CALIFORNIA
ARE MOVING FURTHER AND FURTHER
TOWARDS THE GOAL OF CLEAN ENERGY
100% CLEAN ENERGY. WHY THE
UNCERTAINTY IN THE MARKETPLACE
BECAUSE THERE SHOULD BE MORE
CERTAINTY IN THE MARKETPLACE
RATHER THAN LESS. SO I KNOW I
THREW A COUPLE OF QUESTIONS AT
YOU, BUT I THINK THIS IS KIND OF
IMPORTANT AND HOW WE COME TO A
DECISION THAT THIS IS THIS IS
ULTIMATELY WHERE WE NEED TO GO.
THANK YOU FOR THOSE QUESTIONS ON
THE FIRST ONE. I SHOULD HAVE
STARTED IN MY OPENING REMARKS
TALKING ABOUT, UM, JUST OUR
APPRECIATION FOR YOUR ACTIONS,
INCLUDING RECENT ACTIONS TO TAKE
TO MODIFY PROCESSES TO BE ABLE
TO GET PROJECTS ONLINE FASTER TO
EXPEDITE THE TRANSITION. UM A
LOT UNDERWAY IN THIS FRONT.
THERE IS, I THINK THE ONE I
POINT TO THE MASTERS. THERE IS A
TASK FORCE CALLED THE TED TASK
FORCE CHARGE CHAIRED BY GÓMEZ,
UH AND, UM, IT BRINGS ALL OF THE
ENERGY AGENCIES TOGETHER, AND
THIS TASK FORCE IS ON A WEEKLY
BASIS. TRACKING EVERY PROJECT.
UM AND LOOKING AT ALL IN EXACTLY
WHERE THE PROJECT IS IN
RELATIONSHIP TO THE TIMING, TOO
INTERCONNECTED TO INTER
CONNECTING TO THE GRID, SO AND
THE LEVEL OF GRANULARITY IN
WHICH THE ADMINISTRATION IS
WORKING WITH UTILITIES AND WITH
DEVELOPERS ON ON ON ON TRACKING
THESE PROJECTS, QUITE, UH, QUITE
DETAILED WE, INCLUDING
COLLABORATION WITH THE PORTS ON
THE PACE OF UNLOADING BATTERIES
TO ENSURE THAT THE BATTERIES ARE
GETTING TO THE SITES AND ARE
GETTING INTERCONNECTED AS
QUICKLY AS POSSIBLE. SO THERE'S
UH, IT'S RECENT EFFORTS. THEY'VE
BEEN GOING IN MORE FOR THE LAST,
LIKE TWO YEARS, BUT THERE IS A
LOT OF TRACKING OF EVERY PROJECT
THAT IS UNDER PROCUREMENT AND
REALLY TRYING TO IN A VERY
GRANULAR WAY OF FIGURING OUT
WHEN YOU KNOW WHERE ARE THINGS
ON PERMITTING. WHERE ARE THINGS
ON THE SUPPLY CHAIN AND EVERY
BARRIER THAT CAN BE THAT CAN BE
ADDRESSED AND CAN BE MOVED
THROUGH FACILITATION. WE ARE
WORKING TO ENSURE THAT THOSE ARE
HAPPENING AND THAT THINGS ARE
GETTING DONE AS QUICKLY AS
POSSIBLE. IS THERE ROOM FOR
IMPROVEMENT? THERE ALWAYS IS,
BUT THIS TEST TASK FORCE AND
THAT COLLABORATION EFFORT AS
WELL AS THE IMPORTANCE
PERMITTING CHANGES THAT YOU'VE
MADE, I THINK PUT US INTO A
BETTER POSITION ARE GOING
FORWARD BASIS ON THE
UNCERTAINTY. SOME OF THE
UNCERTAINTY IS FEDERAL
UNCERTAINTY. SO THERE HAS BEEN,
UH, THIS INQUIRY INTO THE SOLAR
TARIFF ISSUE. THE FEDERAL
GOVERNMENT HAS NOW RECENTLY SAID
THAT THEY'RE NOT GOING TO TAKE
ACTION FOR A COUPLE OF YEARS,
BUT THERE HAS BEEN AN OPEN
QUESTION AROUND HOW BATTERIES
IMPORTED FROM SOME COUNTRIES
OUTSIDE OF CHINA WOULD BE
IMPACTED ON THE EXTENT TO WHICH
THEY WOULD BE SUBJECT TO THE TO
THE TARIFFS. THAT PROVIDED SOME
UNCERTAINTY. THERE'S ALSO A
GREAT DEAL OF CONCENTRATION IN,
UH, IN IN SOME AREAS IN CHINA
THAT HAVE BEEN HEAVILY IMPACTED
BY COVID AND BY OTHER AND BY
HEAT AND BY OTHER CHALLENGES
THAT HAVE IMPACTED UH, THOSE
FACTORIES AND THE PATIENT, WHICH
THOSE FACTORIES HAVE GONE THE
LAST PIECE AND START TO GET SO
GRANULAR IS THERE'S BEEN SOME
FIRES ON THE ON THE CONTAINERS
THAT BRING OVER THE BATTERIES
THAT HAVE ALSO FURTHER
CONSTRAINED. HOW MANY CAN
COMMENT ANYWHERE POINT TIME? SO
THERE WHILE THERE IS CERTAINTY
IN THE CALIFORNIA CLIMATE IN
TERMS OF WHERE CALIFORNIA IS
GOING, THERE HAVE BEEN SOME
FEDERAL UNCERTAINTY AND THEN
SOME INTERNATIONAL CHALLENGES
THAT HAVE IMPACTED THE PACE AT
WHICH UH, WHICH SOME OF THESE
PROJECTS ARE MOVING FORWARD, AND
WE ARE DOING WHAT WE CAN ON THE
CALIFORNIA SIDE OF THE HOUSE. UM
AND THE FEDERAL GOVERNMENT HAS
PROVIDED SOME RESPITE ON THE
TIMING FOR THIS SOLAR TARIFF
DECISION, BUT THAT IS AN ELEMENT
THAT REMAINS PART OF THE
OVERHANG FOR SOME OF THE
IMPORTANT RESOURCES TO ACHIEVE
OUR TRANSITION. THANK YOU. IF
THERE AREN'T ANY OTHER
QUESTIONS, ONE QUESTION TO MY
LEFT HERE. CAN YOU HEAR ME? NOW?
THERE WE GO. UM. I THINK MY
BIGGEST QUESTION FOR THE
ADMINISTRATION IS IN NOVEMBER.
2001 THERE WAS THE STANFORD M I
T STUDY. THAT WAS DONE IN. IT'S
TITLED AN ASSESSMENT OF THE
DIABLO CANYON NUCLEAR PLANT.
ZERO CARBON ELECTRICITY DO YOU
SOUND IZATION AND HYDROGEN
PRODUCTION? AND YOU KNOW IF YOU
LOOK INTO THESE NUMBERS, AND I
KNOW THE ADMINISTRATION IS ON
THIS WE'VE GOT TO GET BATTERY
STORAGE AND DO IT THAT WAY. BUT
WHEN YOU BREAK DOWN ALL THE
NUMBERS IT'S CHEAPER AND MORE
EFFECTIVE. TO GO WITH NUCLEAR
THAN IT IS TO GO ANY OTHER ROUTE
FOR A CARBON NEUTRAL. PATH AND I
HAVE TO ASK, WHY ARE WE NOT
LOOKING AT THAT BECAUSE YOU CAN
LOOK AT THE DATA. I MEAN, IT'S
PRETTY CLEAR. IF WE WANT TO
FULLY GO, YOU KNOW SOLAR YOU'RE
TALKING ABOUT 200 WHAT ARE WE AT
$202.77 BILLION WHEREAS IF YOU
GO NUCLEAR, IT'S 33% LESS. TO GO
THAT WAY, AND I KNOW WE'RE
TALKING ABOUT THE EXTENSION FOR
REACTORS ONE AND TWO. BUT I
MEAN, REALLY, WHY IS THE
CONVERSATION SO ONE? ARE WE
LOOKING AT THAT MIT STANFORD
STUDY. AND TWO. WHY ARE WE NOT
LOOKING AT INSTEAD OF JUST DOING
AN EXTENSION LOOKING AT, YOU
KNOW, REACTORS THREE AND FOUR
AND HAVING THAT CONVERSATION IF
WE KNOW THIS IS THE CHEAPER
ROUTE FOR RATEPAYERS IN THE
STATE AS A WHOLE. WE THANK YOU
FOR THE QUESTION. WE DID TAKE A
LOOK AT THAT STUDY VERY CLOSELY,
UM AND AS HAVE THE ENERGY
AGENCIES AND THE MATTER BEFORE
YOU IS THE CONTEXT OF THIS
EXTENSION, AN EXTENSION FOR A
LIMITED PERIOD. WE STILL THINK
THAT THE COMMISSIONING MAKES
SENSE. WE JUST THINK WE NEED A
LITTLE BIT MORE TIME FOR THE
TRANSITION AND IN TERMS OF OTHER
CLEAN RESOURCES. THERE'S A LOT
OF ENERGY POTENTIAL FEDERAL
FUNDING AND OTHER OPTIONS FOR A
VARIETY OF CLEAN RESOURCES AND
AN INTEREST IN SUPPORT IN HAVING
SMALLER NUCLEAR PROJECTS AS PART
OF THE OVERALL WAY IN WHICH WE
ACHIEVED THE TRANSITION, THERE
ARE VARIETY OF PROJECTS THAT CAN
BE COMING TO HELP MEET
CALIFORNIA'S NEEDS. WE THINK
THAT DIABLO EXTENSION IS
NECESSARY. AND WE THINK THAT
HAVING A DIVERSE PORTFOLIO FOR
HOW WE ACHIEVE OUR CLEAN FUTURE
IS AN IMPORTANT PART OF THE
PICTURE. THANK YOU. YOU KNOW THE
QUESTIONS FOR THE
ADMINISTRATION. WE'RE GONNA
OKAY, PLEASE GO AHEAD. THANK
YOU, MR CHAIR. I APOLOGIZE TO
YOU AND, UH TO EVERYONE. I WAS
CAUGHT IN THE TRAFFIC THAT WAS
SHUT DOWN FOR THE UNITED FARM
WORKERS MARCH, UM BUT OBVIOUSLY. BECAUSE I WAS THE ONLY ONE
THAT WAS CAUGHT THERE, SO I
DON'T HAVE A GOOD EXCUSE. UM SO
I APOLOGIZE IF PRESSED MR CHAIR
. IF YOU CAN TELL ME IF SOMEONE
HAS ALREADY ASKED SOME OF THESE
QUESTIONS, BUT UH, FOR MISS
DOUGLAS OR MS MARTA SANTOS. UM
YOU KNOW, I. I THINK THE
LEGISLATURE RECEIVED THE
LANGUAGE FOR THE REQUEST FOR THE
DIABLO CANYON OPERATION, LIKE A
LITTLE MORE THAN TWO WEEKS
BEFORE THE END OF SESSION IS
THAT MORE OR LESS ACCURATE? YES
THAT'S IN THE BALLPARK. OKAY CAN
YOU TELL ME WHY THE
ADMINISTRATION COULDN'T MAKE
THIS PROPOSAL EARLIER SAY IN THE
BEGINNING OF THIS YEAR BEGINNING
OF LAST YEAR, THE BEGINNING OF
THE SESSION I THINK WE HAVE BEEN
LOOKING AT EVERY POSSIBLE OPTION
AND UM AND DOING THE ANALYSIS
AND COMING TO THE NEED FOR AN
EXTENSION AS THE LAST REPORT THE
RESORT THERE WERE SOME REALLY
IMPORTANT QUESTIONS THAT
AFFECTED THE WAY IN WHICH, UH,
AN EXTENSION WOULD BE FUNDED
FROM SO IN TERMS OF BACKGROUND
AND IN TERMS OF OVERALL
DISCUSSION. I THINK THE IT WAS
IN OUR, UH, REVIEW AND KICKING
THE TIRES THAT IS REFERENCED IN
THE ANALYSIS. UM, THIS SPRING
THAT WE REACHED THE CONCLUSION
THAT WE NEEDED ADDITIONAL
ACTIONS. IT'S PART OF WHY WE
BEGIN THE CONVERSATION ABOUT THE
POTENTIAL OF THIS POSSIBILITY.
UM, IN APRIL, WE REALLY
APPRECIATED THE ACTION THAT YOU
TOOK IN, UM IN JUNE, 2 TO BE
ABLE TO PROVIDE FUNDING. FOR
NECESSARY PURCHASES TO KEEP THIS
OPTION IS AN OPTION FOR
DISCUSSION IN AUGUST. UM ON THE
LANGUAGE AND THE TIMING OF THE
LANGUAGE THAT WE WERE WORKING
VERY CLOSELY WITH THE DEPARTMENT
OF ENERGY TO UNDERSTAND HOW THE
OPPORTUNITIES FOR FEDERAL
FUNDING AND THE POTENTIAL
SUPPORT FOR THIS PLANT WAS WAS
DEVELOPING IN MODIFYING AND WE
WERE MAKING SURE THAT WE HAD ALL
THE DIFFERENT PIECES TO BE ABLE
TO COME TO YOU WITH A SENSE OF
UM, OF THE DIFFERENT OPTIONS AND
IN THAT THE POSSIBILITY OF
FEDERAL FUNDING THE POSSIBILITY
OF ELIGIBILITY AND THE
POSSIBILITY OF HAVING AN
EXTENSION BE ONE THAT WAS MADE
MADE THIS MUCH MORE COST
EFFECTIVE, UM, OPTION FOR
CALIFORNIA TAXPAYERS AND
RATEPAYERS WAS ONE OF THE
CRITICAL QUESTIONS WE WERE
LOOKING TO UNDERSTAND BEFORE
COMING WITH THE FINAL PROPOSAL.
SO, UH UM, APOLOGIES FOR THE
TIME AND UNDERSTAND THE
CHALLENGE AND THE SIGNIFICANCE
OF AN ISSUE OF THIS MAGNITUDE
COMING TO YOU THIS LATE IN THE
SESSION. WE WERE WORKING TO
ENSURE THAT WE HAD YOU KNOW, THE
ANALYSIS THAT LED US TO THE
CONCLUSION THAT AN EXTENSION WAS
NECESSARY WAS THIS SPRING
ANALYSIS THAT WE TRIED TO SHARE
IN REAL TIME? UM AND, UH AND
THERE WERE CRITICAL ELEMENTS TO
BE ABLE TO CRAFT THE
LEGISLATION. THAT WERE OPEN
QUESTIONS UNTIL VERY RECENTLY
AND HENCE THE TIMING FOR COMING
TO YOU WITH THE SPECIFICITY OF
THE LEGISLATION. AND
UNFORTUNATELY ON THE BACK END,
UM, THE DEADLINE FOR BEING ABLE
TO APPLY FOR THE FEDERAL FUNDS
THAT WE BELIEVE WILL OFFSET THE
ENTIRETY OF THE LOAN THAT WE ARE
PROPOSING IS SEPTEMBER 6TH. THAT
INITIAL DEADLINE WAS IN MAY. IT
HAS NOW BEEN EXTENDED TWICE BY
THE DEPARTMENT OF ENERGY. WE
HAVE ASKED WHETHER THERE'S
ADDITIONAL TIME THAT IS POSSIBLE
ON THAT END. AND THAT IS NOT
LOOKING LIKE A POSSIBILITY. AND
UM AND HENCE THE NEED TO THE
NEED FOR MOVING FORWARD
EXPEDITIOUSLY ON PURSUING THE
TIMING SO THAT THIS OPTION CAN
BE AVAILABLE. AND THE TIMING OF
APPLICATION FOR THESE FUNDS ARE
THE TWO KEY DEADLINES THAT THAT
HAVE US, UH, PRESSING THIS ISSUE
WHEN SEEKING THIS LEGISLATION
AND THIS AUTHORIZATION AT THIS
TIME? UM BUT WE ARE WE? WE WISH
WE WERE IN A DIFFERENT POSITION.
BUT UNFORTUNATELY, WE THINK THIS
IS THE TIME THAT NEEDS TO BE MET
TO BE ABLE TO HAVE THIS OPTION B
A VIABLE OPTION TO BE ABLE TO
MAINTAIN RELIABILITY AS WE
NEEDED IN THE COMING YEARS. SO
IT SOUNDS LIKE AT LEAST IN IN
THIS BY THE SPRING OF THIS YEAR,
THERE WAS SOME INDICATION THAT
THE ADMINISTRATION WAS
CONSIDERING APPLYING FOR THE
EXTENSION OF THE DIABLO CANYON.
UM AND ORIGINALLY THIS. THERE'S
DEADLINE THAT YOU'RE NOW SAYING
IS BREATHING DOWN OUR NECK.
SEPTEMBER 6TH. IT WAS ORIGINALLY
A MAY DEADLINE. DID THE
ADMINISTRATION CONSIDER APPLYING
FOR THAT EXTENSION BACK IN MAY
IN MAY AT THE TIME THAT THE
PROGRAM WAS FASHIONED THAT WAY
IN THE PROGRAM WAS STRUCTURED.
IT WAS NOT A PROGRAM WHERE THE
PLANT WOULD QUALIFY. SO, UM, SO
WE BEGIN. SO WE BEGAN TO
DISCUSSIONS WITH THE DEPARTMENT
OF ENERGY AND WORKING ON, UM,
TALKING TO THEM ABOUT WHAT
CALIFORNIA MIGHT NEED. UM AND SO
THE SO THE PROGRAM IN ITS
INITIAL CONFIGURATION WAS NOT A
PROGRAM FOR WHICH THE PLANT
WOULD QUALIFY. IT WAS IN THE
CHANGES THAT THE DEPARTMENT OF
ENERGY MADE LATER IN THE SUMMER.
THAT NOW IS A SITUATION WHERE
DIABLO CANYON IS THE ONLY PLANT
IN THE COUNTRY THAT WE BELIEVE
WOULD QUALIFY FOR THOSE FUNDING
FOR THE FIRST CATEGORY OF
FUNDING THE FEDERAL GOVERNMENT
HAS AND SO THAT DETERMINATION
WAS MADE SOME TIME. THIS SUMMER.
I BELIEVE IT WAS IN LATE JUNE OR
EARLY JULY, UM, THAT WHERE THEY
WENT. THEY WENT BACK OUT FOR
PUBLIC COMMENT WITH A MODIFIED
PROPOSAL. AND I BELIEVE LATE
JUNE, UM AND THAT IS THE FIRST
CATEGORY OF FUNDING FOR WHICH
DIABLO CANYON WOULD QUALIFY. UM
THEY MODIFIED THE RULES THEY HAD
PUT IN PLACE EARLIER, AND THAT
IS WHEN THIS OPPORTUNITY BECAME
AVAILABLE, OKAY? YOU KNOW, I
HEARD FROM SOME OF THE. THE
STAKEHOLDERS THAT WERE INVOLVED
IN THE 2016 DEAL TO SHUT DOWN
DIABLO CANYON, A DEAL THAT WAS
RATIFIED, BUT BY THIS
LEGISLATURE IN 2018 AND, UH, YOU
KNOW, I MEAN, I DON'T REPRESENT
DIABLO CANYON OR THE AREA, BUT I
WAS LEARNING ABOUT. YOU KNOW HOW
THE HISTORY OF THIS THIS PLAN? I
MEAN, IT GOES OVER 40 YEARS OVER
40 YEARS, COMMUNITIES HAVE BEEN
HAVE BEEN RAISING CONCERNS ABOUT
UH, ABOUT THIS PLANT AND, UM UM
IT IT IT, UH. UPSETS ME VERY
MUCH THAT THE GOVERNOR IS
PROPOSING TO EXTEND THE DIABLO
CANYON AND PROVIDING DETAILS TO
THE LEGISLATURE JUST TWO WEEKS
BEFORE THE END OF SESSION AND
BEING ASKED TO DO THIS. I MY
NEXT QUESTION IS AND MR SHERIFF,
YOU CAN, UH, TELL ME IF THIS IS
ALREADY BEEN ASKED, BUT UH HUH.
THERE WAS A INDICATION TO ME
THAT, UH, THAT PG AND YOU CAN
APPLY FOR THIS EXTENSION WITHOUT
THE LEGISLATURE AUTHORIZING THIS
THIS LOAN THAT YOU KNOW THE LOAN
WOULD WOULD ONLY, UH. WOULD ONLY
WEAKEN THE PG AND E S CASE THAT
THAT THEY NEED TO HAVE AN
OPERATING LOSS IN ORDER TO, UH,
TO BE A CANDIDATE FOR THIS, UH,
THIS FEDERAL FUNDING. UH COULD
COULD YOU RESPOND TO THAT
SUGGESTION? WE BELIEVE THAT
LEGISLATION, INCLUDING THE LOAN
, INCLUDING THE PATH TO
PERMITTING AND INCLUDING THE
EXPRESSED MECHANISM FOR THE
PUBLIC UTILITIES COMMISSION TO
DIRECT PG AND E. TO BE ABLE TO,
UH PURSUE AN EXTENSION IS
NECESSARY FOR PG AND E TO BE
ABLE TO SUBMIT THE APPLICATION
SO A COUPLE OF PIECES AND WHY
THE NEED FOR THE LEGISLATION.
THE FIRST IS THAT UNDER CURRENT
ORDER FROM THE PUBLIC UTILITIES
COMMISSION, PG AND E IS, UH, IS
ORDER TO DECOMMISSION THE PLANT.
PG AND E IS NOT ALLOWED TO TAKE
ANY ACTIONS THAT PROVIDE FOR THE
OVERALL EXTENSION. SO THERE'S
THE THERE IS THAT THAT IS A
NECESSARY CHANGE FOR THE COMPANY
TO BE ABLE TO PURSUE THE
FUNDING. THE SECOND ELEMENT, AND
I'M GOING TO READ IF IT'S OKAY.
BUT PG AND E IN THE DEPARTMENT
OF ENERGY APPLICATION NEEDS TO
SHOW THAT IT HAS THE LEGAL PATH
TO CONTINUE OPERATIONS BEYOND
ITS CURRENT EXPIRATION DATE. UM
AND IT ALSO HAS TO SHOW THAT IT
WILL HAVE UNCOMPENSATED LOSSES
IN CONNECTIONS WITH THE EXTENDED
OPERATIONS. UH HUH. PG AND E
UNDER THE CURRENT REGULATORY
FRAMEWORK. NOT ONLY HAS TO BE
COMMISSION, THERE'S NO MECHANISM
TO BE ABLE TO PAY FOR ANY POWER
ASSOCIATED WITH AN EXTENSION.
THERE IS NOT A PATH TO BE ABLE
TO PURSUE THE PERMITS SO THEY
WOULD NOT BE ABLE IN THE ABSENCE
OF LEGISLATION. THEY BOTH CANNOT
MOVE FORWARD WITH THE SUBMITTAL
AND THEY ALSO DID NOT HAVE THE
STRUCTURE TO BE ABLE TO PRESENT
AN APPLICATION OF DEPARTMENT OF
ENERGY THAT WOULD BE ELIGIBLE
FOR THIS FUNDING. IN ORDER TO BE
ABLE TO MEET THAT TEST. AS I
MENTIONED, THEY HAVE TO BE ABLE
TO HAVE TO SHOW THAT THEY HAVE A
PATH TO OPERATE. THAT MEANS THEY
HAVE TO HAVE A PATH TO BE ABLE
TO OBTAIN THE NECESSARY PERMITS,
WITHOUT WHICH THEY WOULD NOT BE
ABLE TO CONTINUE TO OPERATE, AND
THEN THEY HAVE TO BE ABLE TO
SHOW A PATH TO BE ABLE TO PAY
FOR THE ENERGY AND THEY HAVE TO
MEET THE TEST FOR HOW THE
FEDERAL PROGRAM WORKS, WHICH IS
THAT THE PROGRAM IS STRUCTURED
TO REIMBURSE FOR LOSSES. SO THE
WAY IN WHICH THE LOAN COMES INTO
PLACES TO MECHANISM TO BE ABLE
TO PAY FOR THE COST OF THE
EXTENSION, THE PRE 2024 2025
COSTS AND IT GENERATES THE
LOSSES THAT, IN TURN, CAN BE
REIMBURSED BY THE FEDERAL
GOVERNMENT, PROVIDING THIS ASSET
IN A WAY THAT IS MORE COST
EFFECTIVE FOR CALIFORNIA.
TAXPAYER RATEPAYERS. SO I HOPE I
ANSWERED THE QUESTIONS. UM BUT
THAT'S THOSE ARE THE SHOWINGS
THAT ARE NECESSARY AND IN THE
ABSENCE OF LEGISLATION, THOSE
SHOWINGS CANNOT BE MADE AND THUS
PG IN APPLICATION COULD NEITHER
BE SUBMITTED NOR MEET THE TEST
OF ELIGIBILITY TO BE ABLE TO
ACCESS THESE FUNDS, ALL RIGHT.
ON THE ISSUE OF THE GRID,
RELIABILITY. I WALKED IN WHEN MR
WOOD WAS ASKING QUESTIONS. I
BELIEVE, RELATED TO RELIABILITY
AND AGAIN PLEASE STOP ME IF
YOU'VE ALREADY ADDRESS THIS, BUT
UM. I WAS I WAS TOLD THAT THAT
WHEN THE ASSEMBLY ASKED FOR DATA
IN TERMS OF, YOU KNOW, TO SHOW
YOU KNOW WHY THIS D'ALBA CANYON
EXTENSION IS NECESSARY THAT THAT
WE WERE DENIED DATA FROM CALLOUS
SO AND OTHER RELEVANT STATE
AGENCIES OTHER THAN A WORST CASE
SCENARIO. THAT THAT WAS PROVIDED
, UH, IS THAT CORRECT? AND IF
SO, WHY CAN THE FURTHER DATA
REQUESTED BY THE ASSEMBLY TO, UH. GET A BETTER IDEA AS TO HOW
DIRE THE RELIABILITY QUESTIONS
ARE. WHY IS THAT DATA NOT SHARED
WITH THE STATE ASSEMBLY? UM I
BELIEVE THAT THE AGENCIES AND
THE ADMINISTRATION HAS CHAIR
SHARED EVERY PIECE OF DATA THAT
IS AVAILABLE FOR EVERY OPTION
THAT HAS BEEN PURSUED AND FOR
ALL OF THE ESTIMATES IN ALL OF
THE ANALYSIS THAT UNDERLIES WHAT
HAS REACHED WHAT HAS LED THE
ENERGY AGENCIES AND US TO MAKE
THE CONCLUSION THAT THIS
EXTENSION IS NECESSARY. THERE IS
NO INFORMATION THAT IS
AVAILABLE. UH TO US, UM, THAT
HAS BEEN WITHHELD. THERE IS SOME
INFORMATION THAT HAS BEEN
PROVIDED IN THE SUMMARY FASHION
, WHICH IS THE INFORMATION
AROUND THE COST ASSOCIATED WITH
DIFFERENT ELEMENTS, AND THE ONLY
REASON IT'S BEEN DONE IN A
SUMMARY FASHION. IT'S BECAUSE
IT'S UH, IT'S YOU KNOW, MATERIAL
. UH IT'S WE CAN'T SEE IT EITHER
. IT'S AH, IT'S INFORMATION OR
AROUND THE CONTRACTS THAT ARE IN
SOME OF THE PROCUREMENT. THAT
IS, UH THAT IS CONFIDENTIAL, UM
, PROTECTED INFORMATION AND
CANNOT BE SHARED BY THE
UTILITIES WITH EACH OTHER AND
OTHER ENTITIES FOR YOU KNOW, I
THINK SEC PURPOSES, BUT EVERY
EVERY DATA REQUEST THAT HAS BEEN
MADE IN EVERY PIECE OF
INFORMATION THAT WE HAVE
AVAILABLE IN TERMS OF WHY WE ARE
HERE. WHAT IS HAPPENING WITH ALL
THE AND WHAT ARE THE OTHER
RESOURCES THAT WE BELIEVE ARE
REASONABLY AVAILABLE? UM AND THE
ANALYSIS FROM THE SL FROM THE
ENERGY COMMISSION FROM THE PUC.
UM HAS BEEN SHARED AND IF
THERE'S ANY ADDITIONAL PIECES IF
THE DATA EXIST, WE ARE HAPPY TO
PROVIDE IT. THANK YOU. I KNOW
QUESTION SUMNIMA CALDERON,
FOLLOWED BY DR QUIRKE. YES.
THANK YOU, MR CHAIR. UM SO, UM.
WHEN ARE YOU UTILITY PROPOSES TO
DO SOMETHING AND CHARGE
CUSTOMERS FOR IT? THEY USUALLY
SUBMITTED AN APPLICATION TO THE
PUC AND THAT PUBLIC PROCESS
PROCESS BUILT AROUND THESE
APPLICATIONS CAN TAKE A YEAR.
SOMETIMES TWO YEARS BECAUSE THEY
HAVE TO LOOK AT ALL THINGS WE'RE
TALKING ABOUT HERE TODAY. UM, IS
A PROJECT NEEDED UM, WHO WILL
PAY AND WHAT'S A FAIR PROFIT? SO
WE ONLY HAVE A FEW DAYS LEFT IN
THIS LEGISLATIVE SESSION AND ON
SOME OF THESE TRICKIER ISSUES.
I'M JUST WONDERING WHY WE CAN'T
HAVE SOME KIND OF EXPEDITED
PUBLIC PROCESS. IT KIND OF FEELS
LIKE WE'RE SETTING. PROFIT BY
LAW AND I'M I'M CONCERNED. BUT I
ALSO UNDERSTAND, UM, THE OTHER
CONCERNS ABOUT HAVING ROLLING
BLACKOUTS. UM BUT MY MAIN
CONCERN IS THE COST THAT WOULD
BE SHIFTED TO MY CONSTITUENTS.
YOU KNOW, I HAVE NO ISSUE WITH
BUSINESSES. UM, YOU KNOW,
EARNING A PROFIT, REASONABLE
PROFIT OR PAYING OUR FAIR SHARE,
BUT THE NUMBERS IN THIS
LEGISLATION, AT LEAST AS I SEE
THEM AND UNDERSTAND THEM SEEM TO
BE REALLY HIGH. I APPRECIATE
THAT QUESTION. UM NORMALLY,
NORMALLY, THE PROCESS IS
DIFFERENT THAN IN THIS ONE.
UNFORTUNATELY, THE QUESTION OF
TIMING UM, AND THE NEED FOR
CERTAINTY AND THE NEED TO BE
ABLE TO PROVIDE TO BE ABLE TO
PURSUE THIS OPTION IN LIGHT OF
THE TIMING FOR EXPLORATION
REQUIRES SOME DIFFERENT ELEMENTS
. IT'S A COUPLE OF PIECES. ONE
IS, UH, WE HAVE DONE A LOT OF
DUE DILIGENCE ON THE
COMPENSATION STRUCTURE ON THE
OTHER COMPONENTS. AH AND THERE
ARE TWO PIECES OUTSIDE OF THE
LOAN. THERE ARE TWO PIECES IN
THE COMPENSATION STRUCTURE. I
GUESS. THREE FOR ON A GOING
FORWARD BASIS. THAT, UM, THAT
THAT ARE A BIT DIFFERENT THAN UH
THEN SOME ARE MORE TRADITIONAL.
SOME ARE DIFFERENT THAN USUAL.
AND PART OF IT IS IN RECOGNITION
OF WHERE WE FIND OURSELVES RIGHT
NOW. SO THE ACTUAL COST OF
OPERATIONS WOULD BE SUBJECT TO,
UH, TO AH, REASONABLE NEST TEST
TO THE REGULAR COST TO SOMETHING
AKIN O THE REGULAR COST
RECOVERY RECOVERY PROCESS
ESTABLISHED BY THE PUBLIC
UTILITIES COMMISSION. THERE IS
AN ELEMENT INCLUDED IN THE IN
THE LEGISLATION OF PROPOSED OF A
MANAGEMENT FEE. PART OF AH, IN
THE RATIONALE FOR THAT
MANAGEMENT FEE, AND THE OVERALL
STRUCTURE IS, UM, IT'S IN
RECOGNITION OF THE FACT THAT
PART OF WHAT WE'RE LOOKING TO DO
HERE IS VERY QUICKLY TURNED FROM
A PLAN TO DECOMMISSION TO A PLAN
TO EXTEND AND TO EXTEND SAFELY
THERE ARE GOING TO BE NECESSARY
INVESTMENTS TO ENSURE THAT WE
RETAIN THE WORKFORCE. UH THAT
THAT HAS BEEN THE TALENTED
WORKFORCE THAT HAS BEEN
OPERATING THIS PLANT SAFELY, UM
AND PROVIDE AND HAVE THE
NECESSARY RESOURCE TO BE ABLE TO
DO THAT. THERE ARE GOING TO BE
SOME ADDITIONAL COST OF, YOU
KNOW, PERHAPS WERE THINGS LIKE
LIKE MAINTENANCE, AND, UH AND
OTHER, UM, AND OTHER DOLLARS
THAT ARE NECESSARY TO BE ABLE TO
FIRST MOVE VERY QUICKLY FROM THE
COMMISSION TO EXTEND BUT ALSO
THE ELEMENT THAT'S IN THE
LEGISLATION IS DECOMMISSIONED AS
QUICKLY AS POSSIBLE IF WE HAVE
OTHER RESOURCES AVAILABLE TO
REPLACEMENT THAT THAT THAT
ABILITY TO MOVE QUICKLY IN BOTH
DIRECTIONS, WE THINK HAS, UH,
HAS MERITS DIFFERENT SETS OF
STRUCTURE FOR COMPENSATION.
THERE'S A LOT OF DISCUSSION THAT
FOLKS HAVE HAD AROUND PROFITS OR
LACK OF PROFIT OR ALL THOSE
DIFFERENT ELEMENTS, AND I'D SAY
ON THAT PIECE. THERE ARE A LOT
OF REALLY IMPORTANT RATEPAYER
PROTECTIONS INCLUDED IN THE
MEASURE TO ENSURE THAT DOLLARS
ARE NOT GOING TO SHAREHOLDER
PROFITS. THAT DOLLARS ARE NOT
GOING FOR OTHER LIKE PURPOSES.
BASICALLY WHAT THE LEGISLATION
WOULD SAY IS ALL THE DOLLARS
HAVE TO GO TO DIRECT OPERATIONS.
DOLLARS THAT ARE NOT GOING TO
DIRECT OPERATIONS OR TO PURCHASE
OF REPLACEMENT POWER. IF FOR
SOME REASON, THE PLANT IS, UH
NOT, UM NOT OPERATING. I HAVE TO
GO TO PUBLIC PURPOSES THAT
OTHERWISE ARE THE TYPES OF
THINGS THAT ARE REQUIRED TO DO
UNDER LAW, AND THEY ARE
RECOVERABLE FROM REPAIRS. SO THE
ANY ANY DOLLARS THAT ARE NOT
DIRECTLY RELATED TO OPERATIONS
ANY DOLLARS THAT ARE NOT GOING
TO THAT TO THAT, FOR THOSE
PURPOSES WOULD HAVE TO GO TO
THINGS LIKE UM, SAFELY THEIR
SAFETY AROUND THE TRANSMISSIONS
, ACCELERATING INTERCONNECTIONS
, UM AND OTHER ELEMENTS. NONE OF
THE DOLLARS COULD GO TO CHANGE
EARNING ASSUMPTIONS TO GO FOR
CORPORATE PROFITS OR ANY SUCH
THING. SO FROM A KIND OF OVERALL
STRUCTURE, THIS STRUCTURE LOOK
DIFFERENT. YES DO WE THINK THAT
STRUCTURE IS NECESSARY TO BE
DIFFERENT? YES, IN LIGHT OF
WHERE WE ARE. AND THERE ARE
CRITICAL REPAIR PROTECTIONS TO
ENSURE THAT ALL OF THE DOLLARS
HERE ARE GOING FOR PUBLIC
PURPOSES OF PROTECTING
RELIABILITY THROUGH OPERATIONS.
AND IF THERE IS MORE THAN WHAT
IS NEEDED FOR THAT, THEN IT HAS
TO GO FOR OTHER PUBLIC PURPOSES
LIKE WILD FIRE SAFETY LIKE
HARDENING OF THE TRANSMISSION
LINES, LIKE SPEEDING UP AREN'T
ARE CLEAN TRANSITION. NOT ANY
DOLLARS THAT CAN BE USED FOR,
YOU KNOW, FOR SHAREHOLDER
PROFITS OR OTHER ELEMENTS THAT
WE WOULD NOT, YOU KNOW, SUPPORT
FUNDING IN THIS OVERALL
STRUCTURE. THANK YOU. DR QUIRKE.
ALL RIGHT. 50 YEARS AGO, I
DEVELOPED NASA'S FIRST CLIMATE
MODEL. UH WELL, NOT ALWAYS IN
THIS FIELD. IT'S SOMETHING I'VE
KEPT TRACK OF FOR MANY YEARS. WE
ARE WE BURNED ABOUT. AFTER
FOSSIL FUELS WE EXPECTED IN OUR
PROJECTIONS. AND THE IMPACTS
HAVE BEEN MANY TIMES GREATER
THAN WE EXPECTED. FOR THAT
REASON, I'M NOT WORRIED ABOUT
LOOKING AT THESE LESS THAN WORST
CASE SCENARIOS, WHETHER THEY'RE
AVAILABLE OR NOT. I'M WILLING TO
BET THAT EVEN THE WORST CASE
TEST WORS CASE SCENARIO CAN BE
BEATEN. AND WE WOULD HAVE. I
MEAN, THERE'S JUST NO GUARANTEE
THAT THE WORST CASE SCENARIO IS
EVEN THE WORST CASE, SO I THINK
THAT'S NOT SOMETHING WE HAVE TO
WORRY ABOUT. ANYONE WHO WANTS TO
DO LESS THAN THE WORST CASE. I'M
SORRY. I JUST I'M NOT GOING TO
GO ALONG WITH THAT. THE OTHER
THING IS RIGHT NOW THE EASIEST
THING FOR PG AND E TO DO IS JUST
SHUT THE PLANT DOWN. THEY DON'T
PARTICULARLY WANT TO BRING IT
UP. THEY'RE WILLING TO SAY OKAY
, GRID RELIABILITY IS IMPORTANT.
SO WE'LL BRING IT UP. BUT THEN
OF SEMPRA ON EDISON. THEY WANT
TO MAKE SURE THEIR CUSTOMERS
DON'T PAY MY COLLEAGUES OUTSIDE
OF PG AND A WANT TO MAKE SURE
THEY DON'T PAY. MY. CONSTITUENTS
DON'T WANT TO PAY ALL OF IT
BECAUSE, AFTER ALL, IT'S JUST TO
KEEP THE GRID UP. UM EVERYBODY
BENEFITS FROM THAT THIS IS NOT
SO MUCH THAT PG AND E IS RUNNING
OUT OF, UH, OF ENERGY AS WE HAVE
TO KEEP THE GRID GOING ON THESE
VERY TOUGH DAYS, AND THAT'S
SOMETHING EVERYONE BENEFITS
FROM. UM. THE OTHER THING IS, IT
IS A FOR PROFIT COMPANY. THE
EASIEST HING IN THE LEAST RISKY
THING FOR THEM TO DO IS JUST
CONTINUE THE WAY IT IS. SO THEY
HAVE TO HAVE SOME SORT OF
INCENTIVE FROM THE STATE TO KEEP
GOING. NOW THAT INCENTIVE, I
BELIEVE IS IN THE $20 PER
MEGAWATT HOUR IF I HAVE THAT,
ALL RIGHT? THAT THEY WILL GET
ONLY IF THE PLANT, OF COURSE IS
UP AND RUNNING. AND THAT COULD
YOU SAY WHAT THE DISPOSITION OF
THAT MONEY I ASSUME WOULD GO AH
AS PROFIT TO THE COMPANY. BUT
WHY DON'T YOU JUST BE MORE
EXPLICIT ABOUT THAT? I KNOW
WE'RE GOING TO HAVE A LOT OF
QUESTIONS ABOUT IT LATER. UH ALL
OF THE DOLLARS HAVE TO GO TO
OPERATIONS, UM, OR TO THE
ELEMENTS ASSOCIATED WITH THIS
PIECE. ANY DOLLARS? YOU KNOW, SO
LIKE A MANAGEMENT FEE WOULD HAVE
TO BE REINVESTED IN THE TYPES OF
THINGS THAT ARE THE PUBLIC
PURPOSES THAT OTHERWISE ARE COST
RECOVERABLE. SO THOSE DOLLARS
THE INCENTIVE PAYMENTS
ASSOCIATED WITH RUNNING THE
PLANT EFFICIENTLY AND
ACCOMPLISHING THOSE GOALS. ANY
DOLLARS LEFT OVER THERE. THEY
CANNOT GO TO CHANGING THEIR
EARNINGS ASSUMPTIONS. THEY
CANNOT GO TO SHAREHOLDER PROFITS
. THEY HAVE TO GO TO PAY FOR
INTERCONNECTION. THEY HAVE TO GO
TO PAY FOR THE FOR, UH, FOR, UM
YOU KNOW THINGS LIKE THE
TRANSMISSION UPGRADES. THEY GO
TO OTHER EXPENSES. SO I GUESS
THE WAY IN WHICH I THINK ABOUT
IT, IS THERE THERE. THERE'S
THOSE IT PROVIDES. NEAR TERM
CASH FLOW, THE INCENTIVE PAYMENT
GOES TO NEAR TERM CASH FLOW TO
FUND OTHER KINDS OF THINGS, OR
THE KINDS OF THINGS THAT THE
UTILITY IS REQUIRED TO DO FOR
OTHER PUBLIC PURPOSES, UM, AND
TO MEET THE REGULATORY
OBLIGATIONS ALRIGHT, AND I ALSO
KNOW THAT PG AND NEARS, AGREED
NOT TO TAKE A RETURN ON EQUITY
ON THE PLANT. SO HOW ARE THEY
GOING TO BE COMPENSATED? AND DO
WE HAVE ANY IDEA HOW THAT WILL
BE SPREAD ACROSS THE STATE? THE
THERE THERE IS A PART OF THE
REASON FOR THIS STRUCTURE IS YES
, BECAUSE AS PART OF THE OVERALL
STRUCTURE, THERE IS NO RETURN ON
EQUITY. THAT IS, UH, THAT IS, UM
, THAT IS INCLUDED. IT IS A
DIFFERENT STRUCTURE WHERE THE
DOLLARS ARE GOING FOR. PLANT
OPERATIONS AND THE AND THE
DOLLARS ARE GOING FOR PUBLIC
PURPOSES LIKE, UH, MAKING OUR
TRANSMISSION LINES SAFER, YOU
KNOW, PERHAPS THINGS LIKE
HELPING WITH UNDER GROUNDING,
AND, UM, AND THERE'S EXPLICIT
LANGUAGE. IT SAYSTHAT WHAT GETS
FUNDED FROM THIS CANNOT BE, UH,
COST. IT CANNOT BE SOUGHT IN
COST RECOVERY ELSEWHERE, SO
THEY'RE JUST GOING TO GET WHAT
THEY GET IF NONE OF THIS WERE
HAPPENING. I E. THERE'S JUST A
RANDOM PLANT. THEY'RE SELLING
ENERGY AND THE CPUC IS DECIDED
ON THE RATE OF RETURN THERE SO
THEY FOR OPERATIONAL PURPOSES
THEY SELL, YOU KNOW, THEY SELL
THE ENERGY, THEY GET THE OVERALL
RECOVERY. WE ACTUALLY THINK THAT
THERE'S AN OPPORTUNITY FOR THIS
TO BE, UH UM, REVENUE GENERATOR
FOR RATEPAYERS, BECAUSE PART OF
WHERE WE FIND OURSELVES IS BASED
ON CONSTRAINT AVAIL IN AVAILABLE
OVERALL SUPPLY. IN THE BALANCE
OF THE WEST. UM AND DURING TIMES
OF THE DAY, WE MAY HAVE AN
OPPORTUNITY TO BE ABLE TO SELL
THIS ENERGY TO OTHER
JURISDICTIONS WHEN WE HAVE A LOT
OF SOLAR AND WE HAVE SOME
ADDITIONAL ROOM. THIS PLANT
COULD HELP REDUCE OUR USE OF GAS
, AND IT COULD ALSO HELP PROVIDE
, UM ENERGY TO OTHER
JURISDICTIONS, WHICH WOULD
PROVIDE NET REVENUES THAT HAVE
TO BE USED FIRST TO PAY
RATEPAYERS FOR WHAT THEY ARE
PAYING FOR. UM AND SECOND FOR
THESE OTHER PURPOSES THAT I
MENTIONED LIKE GRID HARDENING,
LIKE, UH, INTO, YOU KNOW,
ACCELERATING INTERCONNECTIONS
AND THINGS THAT ARE RELATED TO
SAFETY AND TO OUR TRANSITION.
THE LANGUAGE IS EXPRESSED THAT
IT CANNOT BE USED TO CHANGE ANY
ASSUMPTIONS AROUND. UM AROUND
EARNINGS OR AROUND PROFITS AND
THE SO THUS THE DOLLARS ARE NOT
ARE ONLY GOING FOR OTHER
PURPOSES THAT ARE PUBLIC
PURPOSES AND THAT ARE
RECOVERABLE FROM RATEPAYERS. IN
THE ABSENCE OF THIS FUNDING, ALL
RIGHT, AND THEN I KNOW MY
COLLEAGUES AROUND THE STATE ARE
GOING TO ASK. UM. WHAT IS THE
BURDEN ON RATEPAYERS AND THE
VARIOUS PARTS OF THE STATE? HAS
THAT BEEN LOOKED AT ABSOLUTELY
HAS BEEN LOOKED AT AND THE WAY
IN WHICH WE'RE LOOKING AT THIS
ISSUE IS THIS RESOURCE WILL BE
PROVIDING RELIABILITY STATEWIDE.
UM THIS RESOURCE IS GOING TO BE
HELPING. YOU KNOW NOT ONLY, UH,
CALIFORNIANS AND PG AND E
SERVICE TERRITORY WHETHER THEY
BE COVERED UNDER A CC A OR PG
AND E, BUT IT'S ALSO GOING TO BE
HELPING, UM, YOU KNOW
CALIFORNIANS AND IN LOS ANGELES
CALIFORNIANS IN SAN DIEGO,
CALIFORNIA AND OTHER AREAS OF
THE STATE THAT WE WERE, WHERE WE
THINK THIS RESOURCES NECESSARY
TO BE ABLE TO MAINTAIN
RELIABILITY. THUS WE THINK,
SINCE SINCE THE WHOLE STATE IS
BENEFITING ALL CUSTOMERS THAT
ARE SERVED BY ENTITIES THAT ARE
REGULATED BY THE PUBLIC
UTILITIES COMMISSION SHOULD BE
PART OF PAYING FOR IT. THERE IS
A DIFFERENTIAL INCLUDED IN THE
LEGISLATION WHERE THE AMOUNT OF
FUNDING THAT IS PROVIDED BY
CUSTOMERS OUTSIDE OF PG AND E
TERRITORY IS DIFFERENT. UM THEN
THOSE WITHIN PG AND E S
TERRITORY, BUT THERE IS
PARTICIPATION ON A STATEWIDE
BASIS IN RECOGNITION THAT THIS
IS GOING TO BE A STATEWIDE
RELIABILITY RESOURCE, OKAY? UM.
CAN WE AT SOME POINT, AND MAYBE
THIS ISN'T THE POINT. IF WE
COULD BE MORE EXPLICIT ABOUT, UM
, PG AND E S CUSTOMERS BURDEN
VERSUS PEOPLE OUTSIDE BECAUSE I
NOW UH, MY FRIEND HERE FROM SAN
DIEGO AREA IS VERY CONCERNED
ABOUT HAVING THE HIGHEST
ELECTRIC RATES IN THE STATE. UM
RRS, OTHERS? WHAT WOULD IT DO TO
THEIR BILLS? I GUESS IS THE
BOTTOM LINE. SO FOR AN AVERAGE
BILL. IN PG AND E TERRITORY.
WHAT WOULD IT BE? AND IN
SEPARATE TERRITORY, WHAT WOULD
IT BE AND THEN? EDISON TERRITORY
CCS PROBABLY DEPEND UPON WHICH
OF THOSE TERRITORIES THERE IN
BUT SOMETHING ABOUT A MONTHLY
BILL OR A YEARLY BILL. UH, WOULD
BE VERY HELPFUL TO MY COLLEAGUES
AND MAKING A DECISION ON THIS.
THANK YOU GLADLY PROVIDE THAT
INFORMATION TO PIECES. I'D SHARE
ONE IS WE THINK THE COST THE
TOTAL COST OF THIS RESOURCE. UM
WILL BE, UH, WILL BE LESS THAN
WHAT WE THINK WOULD BE THE COST
OF OTHER ALTERNATIVES IF WE WERE
UM, AND IT'S ALSO MORE CERTAIN
THAN FOR EXAMPLE, IF WE HAD TO
GO OUT AND SECURE ADDITIONAL
IMPORTS OR OTHER COMPONENTS, SO
WE THINK THE ENERGY ON THE WHOLE
IS COMPETITIVE. WE ARE HAPPY TO
PROVIDE INFORMATION AROUND THE
DIFFERENTIAL ACROSS THE UNITS,
BUT I GUESS THAT'S WHAT I'D SAY
IS THE CUSTOMERS OUTSIDE OF PG
AND E SERVICE TERRITORY WILL PAY
FOR A LESSER SHARE OF THE COST
OF THE EXTENSION, THEN THE
AMOUNT OF THE LOAD OF THAT THAT
THEY COMPRISE SO THEY WILL PAY
LESS THAN THE PERCENTAGE THAT,
UM SO IF WE, YOU KNOW, SPLIT,
FOR EXAMPLE, AND SAY AH, AND SAY
, AH, SC AREA IS, UM IS THAT
THEY'LL PAY LIKE IT'S LET'S SAY
THE NUMBER OF IT MAY NOT WANT TO
GET INTO ALL THE DETAILS
UNPREPARED THEY WILL BE. THEY'RE
PAYING LESS OF THE TOTAL COST
THAN WHAT THOSE AREAS REPRESENT
OF TOTAL LOAD IN THE STATE. IF
THAT HELPS, SO WE'LL GET YOU THE
SPECIFICS AND GETTO THE
SPECIFICS. THE OTHER THING IS, I
UNDERSTAND THAT WELL, IT'S NOT
CLEAR THERE IS ANOTHER
ALTERNATIVE. UH BUT IF THERE
WERE ANOTHER ALTERNATIVE, WE
REALLY COULD BUILD ALL OF THE
THINGS WE WANT TO BUILD. UM THAT
THIS WOULD STILL PROBABLY BE FOR
AT LEAST 5 TO 10. YEARS TO PLANT
IS OPEN. UM THAT THIS WOULD BE
AH, A CHEAPER WAY TO GO FOR
PROBABLY ALL THE RATEPAYERS AND
AGAIN. SOMETHING IN DOLLARS PER
BELL IS PROBABLY HELPFUL. UM.
SEE I'M ALSO GOING TO POINT OUT
THAT, UM. GOVERNOR NEWSOM WAS
THE PRIME OPPONENT. KEEPING THIS
PLANT OPEN. AND IN FACT, YOU'VE
TOLD US YOU SENT A LETTER OUT,
TELLING THE UH, FERC AND THE
EXCUSE ME THE ATOMIC ENERGY.
WELL, IT'S NO LONGER ATOMIC
ENERGY COMMISSION. IT'S FERC.
NRC, NRC NUCLEAR REGULATORY
COMMISSION. UM THAT NO
CONDITIONS WERE THERE TO KEEP
THIS OPEN. UM AND SO THERE'S A
LOT OF PEOPLE WHO DON'T WANT TO
KEEP THIS OPEN, BUT I DO THINK
WE'RE BETWEEN A ROCK AND A HARD
PLACE AND THIS IS A BETTER PLACE
TO BE. LAST TIME WE HAD ROLLING
BLACKOUTS, WE LOST THE GOVERNOR.
GOD KNOWS WHAT ELSE SO UM, CHIP
? WELL THIS HAS TO GO FORWARD.
THANK YOU. THANK YOU, DOCTOR.
QUICK. WE'RE GONNA MOVE ON ON
THE AGENDA. I'M SURE THERE'LL BE
MORE QUESTIONS THAT WILL
EVENTUALLY CIRCLE BACK TO THE
ADMINISTRATION. WE HAVE TOM
JONES SEEN DIRECTOR OF
REGULATORY, ENVIRONMENTAL AND
REPURPOSING CIVIC GAS ELECTRIC.
PRESENTATION OF 5 10 MINUTES AND
THEN WE'LL MOVE ON TO THE NEXT
PRESENTER, AND WE'RE GOING TO
RESERVE QUESTIONS FOR THE REST
OF THE PANELISTS AFTER THE FINAL
ONE PRESENT, SO THANK YOU.
MORNING MR CHAIRMAN AND
COMMITTEE MEMBERS. I'M TOM
JONES. I'M PG SENIOR DIRECTOR OF
REGULATORY, ENVIRONMENTAL AND
REPURPOSING FOR OUR NUCLEAR
ASSETS. ALSO WITH ME TODAY ON
THE LINE IS TYSON SMITH ARE
MANAGING COUNCIL WORKING ON THIS
ISSUE. MY ROLE AT DIABLO CANYON.
MY RESPONSIBILITIES INCLUDE
DECOMMISSIONING PLANNING LAND
STEWARDSHIP FOR THE 12,000 ACRES
THAT HAVE BEEN DISCUSSED. STATE
AND LOCAL PERMITTING THE FUTURE
STATE OF THE NUCLEAR CAMPUS. YOU
KNOW IT WAS THE FORMER DIRECTOR
OF LICENSE ENEWAL WHEN WE WERE
PURSUING THAT ENDEAVOR. WE
APPRECIATE THE OPPORTUNITY TO
SPEAK WITH YOU TODAY ABOUT HOME
INSURANCE, SAFE AND RELIABLE
OPERATIONS. MM PRODUCED CLEAN
GREENHOUSE GAS FREE EMISSIONS
ARE POWER FROM DIABLO CANYON,
THE BENEFITS OUR CUSTOMERS AND
ALL CALIFORNIANS. HE IS PROUD OF
THE ROLE. OR EVER CLEAN ENERGY
LEADERSHIP AND COMMITMENT TO
CALIFORNIA'S BOLD ENERGY GOALS.
AND WHILE WE REMAIN ON THE PATH
TO DECOMMISSION THE PLANT IN
ACCORDANCE WITH STATE ENERGY
POLICY. WE STAND READY TO
SUPPORT THE STATE'S ENERGY
RELIABILITY NEEDS AS CALIFORNIA
TRANSITIONS TO MORE CLEAN ENERGY
RESOURCES. SHOULD STATE POLICY
CHANGE TO EXTEND OPERATIONS AT
DIABLO CANYON. THERE ARE A
NUMBER OF NECESSARY FEDERAL,
STATE AND LOCAL REGULATORY
APPROVALS THAT ARE NEEDED. THERE
ARE ALSO SOME CRITICAL NEAR TERM
ACTIVITIES. THAT WE WOULD HAVE
TO QUICKLY UNDERTAKE TO MAKE
THIS A VIABLE OPTION FOR THE
STATE, INCLUDING FUNDING A FUEL
PURCHASING. USED FUEL
MANAGEMENT. IN RAMPING UP
PROJECT TEAMS TO SUPPORT THE
NUCLEAR REGULATORY LICENSE REAL
APPLICATION PROCESS THAT WE HAD
IN BEEN BEFORE WE COMPLETED
ABOUT 85% OF THAT THAT WE WOULD
HAVE TO RE INITIATE THAT
PROCESS. AS ALWAYS OUR
COMMITMENT AND FOCUSES ON THE
SAFE AND RELIABLE OPERATIONS OF
DIABLO CANYON. MYSELF AND ALL
THE WORKERS AT THE YELLOW CANYON
LIVE IN THE COMMUNITIES
SURROUNDING THE PLANT WERE
DEDICATED TO ITS SAFE
OPERATIONS. FACTS TO SHARE ABOUT
THE ELBOW CANYON. ROVIDES LOW
COST OF CARBON FREE ELECTRICITY
FOR MORE THAN THREE MILLION
PEOPLE. THE TWO UNITS CAN
GENERATE 2200 MEGAWATTS OF
BASELINE ELECTRICITY. ALL PLANT
OPERATIONS ARE MONITORED BY THE
NUCLEAR REGULATORY COMMISSION.
AS WELL AS SEVERAL OTHER
INDUSTRY AND EXTERNAL ENTITIES
THAT AGAIN TAKE A LOOK AT OUR
OPERATIONS, INCLUDING THE DIABLO
CANYON INDEPENDENT SAFETY
COMMITTEE, FROM WHOM YOU'LL HEAR
LATER IN THIS HEARING. NO OTHER
NUCLEAR POWER PLANT HAS SUCH A
COMMITTEE. IT'S SERVED BOTH OUR
CUSTOMERS AND THE STATE AND THE
UTILITY VERY WELL. YOU WANT ONE
FOR BACKGROUND IS CURRENTLY
LICENSED TO OPERATE UNTIL
NOVEMBER OF 2024. UNIT TWO IS
LICENSED TO OPERATE UNTIL AUGUST
OF 2025. REGARDING THE
APPLICATION SAFETY PERFORMANCE.
CANYON CANNOT OPERATE WITHOUT
APPROVALS FROM THE NUCLEAR
REGULATORY COMMISSION AND THOSE
OTHER STATE AGENCIES. THE NRC'S
RECENT ASSESSMENT OF THE APPLE
CANYON, WHICH COVERED THE ENTIRE
CALENDAR AND OPERATIONAL YEAR OF
2021. INCLUDED THAT THE OVERALL
PERFORMANCE OF THE POWER PLANT
PRESERVED THE PUBLIC HEALTH AND
SAFETY AND IT PLACED THE PLANT
AMONG THE TOP PERFORMERS IN THE
UNITED STATES. THE CANYON IS
CONTINUALLY INSPECTED AND
ASSESSED BY NRC INSPECTORS TO
ENSURE ITS SYSTEMS, STRUCTURES
AND COMPONENTS OPERATE SAFELY
EVERY DAY. THERE ARE TWO INNER
CITY INSPECTORS, KNOWN AS
RESIDENT INSPECTORS, LOCATED AT
THE PLANT THAT DAILY INSPECT AND
ASSESS PLANT SAFETY OPERATIONS
AND MAINTENANCE. THERE ARE OVER
10 TO 12 SPECIALIZED INSPECTIONS
EVERY YEAR BY THE INNER SEE
WHERE THEY TAKE A DEEPER LOOK AT
OTHER AREAS OF THE PLANT. WITH
REGARD TO SEISMIC SAFETY. IT'S
IMPORTANT TO CONVEY THE
EARTHQUAKE SAFETY WAS AT THE
FOREFRONT OF THE DESIGN OF THE
FACILITY, AND THE INNER CITY HAS
DETERMINED THAT THE CANYON IS
SEISMIC SAFE, SEISMICALLY SAFE.
IF WE'RE NOT, WE WOULDN'T BE
ALLOWED TO OPERATE TODAY, LET
ALONE CONSIDER EXTENDED
OPERATIONS. AS PART OF THE
FEDERAL CONDITIONS TO OPERATE
THE DOUBLE CANYON. WE MAINTAIN A
PROGRAM CALLED THE LONG TERM
SEISMIC PROGRAM. THIS IS UNIQUE
RESEARCH PROGRAM THAT IS
COMPRISED OF SOME GEOSCIENCE
TEAM OF PROFESSIONALS WHO
PARTNER WITH INDEPENDENT SEISMIC
EXPERTS ON AN ONGOING BASIS TO
EVALUATE THE REGIONAL GEOLOGY.
IN GLOBAL TSUNAMI AND SEISMIC
EVENTS TO ENSURE THE FACILITY
REMAINS SAFE. BECAUSE OF THIS
PROGRAM AND DECADES OF INDUSTRY
LEADING RESEARCH, THE SEISMIC
REGION AROUND DIABLO CANYON IS
AMONG THE MOST STUDIED AND
UNDERSTOOD AREAS IN THE NATION.
FOLLOWING THE OFFENSIVE
FUKUSHIMA IN 2011. THE ENERGY
DIRECTED ALL US NUCLEAR POWER
PLANTS TO UNDERGO A RENEWED
SEISMIC THREAT AND RISK
REEVALUATION. THE SEISMIC
ANALYSIS FOR THE CANYON WAS
PERFORMED USING THE INNER CITY
MANDATED PROCESS KNOWN AS THE
SENIOR SEISMIC HAZARD ANALYSIS
COMMITTEE OR SHOCK PROCESS. AND
THIS PROCESS NEW AND EXISTING
SEISMIC INFORMATION WAS PEER
REVIEWED AND PUBLICLY EVALUATED
BY THIRD PARTY AND INDEPENDENT
EXPERTS. THE UPDATED SEISMIC
EVALUATION REPRESENTS A MORE
EXTENSIVE EVALUATION OF THE
SEISMIC HAZARD THAT WAS
PREVIOUSLY KNOWN AND INCLUDES
THE RISK OF EARTHQUAKES
OCCURRING ON INDIVIDUAL AND
MULTIPLE GEOLOGIC FAULTS.
FOLLOWING THIS PROCESS IN THIS
RESEARCH THE NRC DETERMINED THAT
FOR DIABLO CANYON NO PLANT
SYSTEMS, STRUCTURES AND
COMPONENTS IMPORTANT TO SAFETY.
WE'RE IN NEED OF UPDATING TO
PROTECT AGAINST EARTHQUAKES.
WITH REGARD TO MAINTENANCE.
WE'VE MET ALL REQUIRED
MAINTENANCE ON THE PLANTS,
SYSTEMS, STRUCTURES AND
COMPONENTS AS WE NEAR 2025 IF WE
DID NOT THE INNER CITY IT'S
SIMPLY NOT ALLOW US TO OPERATE.
WE HAVE OPTIMIZED THE PLANT
MAINTENANCE SCHEDULE AND SHOULD
THE STATE POLICY CHANGE TO
EXTEND OPERATIONS AT THE PLANT.
WE WOULD EVALUATE ADDITIONAL
MAINTENANCE FOR THE FACILITY. IN
ADDITION TO INTERCEDE, OVERSIGHT
AND INSPECTION OF THE DIABLO
CANYON MAINTENANCE AND
OPERATIONS AGAIN THE APPLICATION
. YIN HAS OVERSIGHT FROM THE
INDEPENDENT SAFETY COMMITTEE.
BUT ALSO THOROUGHLY LOOKS AT
OPERATIONAL ACTIVITIES AND
ANOTHER THINGS LIKE TRAINING AND
EMPLOYEE RETENTION ON A MONTHLY
BASIS AND THEN HAVE MULTIPLE
PUBLIC MEETINGS A YEAR. AGAIN WE
APPRECIATE THE OPPORTUNITY TO
SHARE INFORMATION ABOUT THE
APPLE CANYON OPERATIONS, AND
WE'RE HERE TO HELP ANY ADDRESS
ANY QUESTIONS THAT YOU MIGHT
HAVE. THANK YOU. THANK YOU. OUR
NEXT PRESENTER IS DON ORTIZ LEG
. SHE'S A SUPERVISOR OR COUNTY
OF SAN LUIS OBISPO DISTRICT
THREE. GOOD MORNING. GOOD
MORNING, CHAIRMAN GARCIA. GOOD
TO SEE YOU AND MEMBERS OF THE
ASSEMBLY COMMITTEE. MY NAME IS
DONNA TEASE LEG. I AM THE THIRD
DISTRICT SUPERVISOR IN ST LOUIS
OBISPO COUNTY. THE THIRD
DISTRICT IS THE LOCATION OF THE
DIABLO CANYON NUCLEAR POWER
PLANT. ON BEHALF OF SLOW COUNTY
AND OUR RESIDENTS. THANK YOU FOR
HOSTING THIS INFORMATIONAL
HEARING AND ALLOWING FOR MY
BRIEF COMMENTS. I WOULD LIKE TO
COVER A BACKGROUND ON OUR COUNTY
AND ITS ROLE IN ENERGY
GENERATION OUR COUNTY STANCE ON
THE EXTENSION OF DIABLO CANYON
NUCLEAR POWER PLANT, AND THEN
WE'LL CLOSE WITH SOMEONE MY OWN
COMMENTS AND PERSPECTIVE. SEND
LUIS OBISPO COUNTY HAS OVER A
CENTURY LONG HISTORY OF
GENERATING IN DISTRIBUTING
ENERGY THROUGHOUT THE STATE OF
CALIFORNIA. IT'S WHAT WE DO HERE
AND WE DO IT WELL. WE HAVE BOTH
A WELL INFORMED PROFESSIONAL
WORKFORCE IN A HIGHLY SKILLED
LABOR FORCE, ALONG WITH THE
BRIGHTEST MINDS IN ENERGY,
NEARING AND INNOVATION, POLY SAN
LUIS OBISPO AND QUEST, THE
COMMUNITY COLLEGE WITH THREE OF
CALIFORNIA'S MAIN ELECTRIC
TRANSMISSION, HIGHWAYS, ORIGINAL
AND ORIGINATING IN SAN LUIS
OBISPO COUNTY. OUR ROLE IN STATE
ENERGY GENERATION IS SIGNIFICANT
, AND THIS RESPONSIBILITY IS
RECOGNIZED BY OUR LOCAL LEADERS
AND OUR COMMUNITY MEMBERS. OUR
LARGEST PRIVATE EMPLOYER, DIABLO
CANYON NUCLEAR POWER PLANT IS A
SUBSTANTIAL ASSET FOR THE ENTIRE
CENTRAL COAST REGION. SINCE THE
NEWS OF DECOMMISSIONING SLOW
COUNTY HAS BEEN ACTIVE AND
REPLACING THE LOSS OF 1500
HIGHWAY, HIGH WAGE JOBS AND 1900
CONTRACTOR JOBS AT DIABLO IN
JUNE OF 2021, THE BOARD OF
SUPERVISORS PASSED A RESOLUTION
RECOGNIZING THE IMPORTANCE OF A
B 5 25 AND THE DEVELOPMENT
OFFSHORE WIND HERE ON THE COAST.
THE COUNTY HAS RECENTLY INVESTED
IN A FEASIBILITY STUDY ON PORTS
INFRASTRUCTURE SO WE CAN PLAY
CONTINUE TO PLAY A SIGNIFICANT
ROLE IN THAT ENERGY GENERATION.
WHILE THOSE EFFORTS ARE ONGOING
MIDTERM RELIABILITY AND THE ROLE
OF CONTINUED OPERATION OF DIABLO
CANYON IS CLEARLY UNDERSTOOD.
AND EARLIER THIS YEAR, THE BOARD
OF SUPERVISORS SENT GOVERNOR
NEWSOM A LETTER REQUESTING HIS
ASSISTANCE TO CONTINUE
OPERATIONS AT DIABLO CANYON
NUCLEAR POWER PLANT. HMM. SAFETY
BEING THE NUMBER ONE ISSUE
OUTWEIGHING ALL OTHERS. I WANT
TO CONVEY THE FEDERAL EMERGENCY
MANAGEMENT AGENCIES RADIOLOGICAL
EMERGENCY PREPAREDNESS PROGRAM
THAT AIMS TO PROTECT THE HEALTH
AND SAFETY OF THE PUBLIC
SURROUNDING THE COMMERCIAL
NUCLEAR POWER PLANT. AS PART OF
THIS PROGRAM, SAN LUIS OBISPO
COUNTY IS SUBJECT TO EXTENSIVE
REGULATIONS AND EVALUATIONS TO
ENSURE THE COUNTY AS A
CAPABILITY TO RESPOND SHOULD AN
EMERGENCY OCCUR. THESE
REGULATIONS COVER A BROAD
SPECTRUM OF CAPABILITIES FROM
ALERT AND NOTIFICATION IN PUBLIC
EDUCATION TO RESPOND TO TRAINING
FACILITY READINESS AND FULL
SCALE EXERCISES. THE COUNTY
STRIVES TO NOT ONLY MEET BUT
EXCEED THESE REGULATIONS BY
CONTINUALLY ASSESSING AND
APPROVING IMPROVING UPON CURRENT
PLANS AND CAPABILITIES TO ENSURE
THE HIGHEST STANDARD OF
EMERGENCY RESPONSE FOR THE
COMMUNITY. IF THE DIABLO CANYON
NUCLEAR POWER PLANT CONTINUES TO
OPERATE PAST 2024. 2025 THE
COUNTY AND ALL EMERGENCY
SERVICES WILL CONTINUE THESE
EFFORTS AND WILL ALWAYS MAKE
SURE THAT SAFETY OF OUR
COMMUNITY AND CITIZENS ARE THE
PRIORITY. PLANT EXTENSION MAY
REQUIRE NEW INVESTMENTS AND
BEING HOST COUNTY TO A NUCLEAR
POWER PLANT HAS ITS
RESPONSIBILITY. SO I WANT TO
NOTE THAT IN THE CURRENT
PROPOSED LEGISLATION, OUR COUNTY
COUNCIL HAS IDENTIFIED A CONCERN
IN THE NEW PUBLIC UTILITY CODE
SECTION 712.8 SECTION G. ONE AND
WE ASKED THE LAST SENTENCE, BE
STRICT AND REPLACED WITH THIS
SENTENCE THAT CAPITAL COSTS
SHALL BE INCLUDED IN THE
OPERATOR'S RACE BASED, BUT NOT
SHALL EARN A RETURN ON
INVESTMENT. THIS CHANGE WILL
PRESERVE THE UNITARY TAX BASE
THAT GOES TO THE COUNTY. THIS IS
PEACE IS CRITICAL AND NECESSARY
FOR SAN LUIS OBISPO COUNTY. WE
HAVE COMMUNICATED THIS TO THE
GOVERNOR'S OFFICE, AND I'M
COMMUNICATING IT HERE TO YOU NOW
FOR THE RECORD. IN CLOSING. I
JUST WANT TO SAY THAT AS THE
SITTING SUPERVISOR, I WANT TO
ACKNOWLEDGE THAT NUCLEAR
TECHNOLOGY AS A POWERFUL
TECHNOLOGY AND REQUIRES ONGOING
AND RIGOROUS OVERSIGHT PROVIDED
BY THE AGENCIES. DISCUSSED IN
THE STATE OF CALIFORNIA AND
THROUGH THE FEDERAL GOVERNMENT.
OUR COMMUNITIES RELATIONSHIP TO
DIABLO CANYON IS SIMILAR TO WHAT
HAS BEEN NOTED IN RECENT SURVEYS
. AND THAT IS THE MAJORITY OF
THE COMMUNITY MEMBERS SUPPORT
THE PLANT AS IT WAS BUILT AND
OPERATED AND IS OPERATED BY
GENERATIONS OF CENTRAL COAST
FAMILIES. THEIR RISK. INFORMED
SAFETY CULTURE IS INGRAINED IN
ORDER TO SAFELY OPERATE THIS
PLANT 24 HOURS A DAY, SEVEN DAYS
A WEEK WITH ONGOING MONETARY OF
OPERATIONS AND SEISMIC ACTIVITY
. THIS IS THEIR COMMUNITY AND
THEY WORK TO PROTECT THEMSELVES
AND THEIR FAMILIES AND THE REST
OF THE COMMUNITY. IN ADDITION,
SAN LUIS OBISPO COUNTY IS HOME
TO A ROBUST GROUP OF CITIZENS
WATCHDOGS, WHO ALSO KEEP ON TOP
OF PLANNED ACTIVITIES AND ARE
VERY ENGAGED. THEIR OVERSIGHT IS
WELCOME AND IMPORTANT TO
RECOGNIZE. AS SOMEONE WHO HAS
SPENT NEARLY A DECADE DEVELOPING
AND CONSTRUCTING NEARLY TWO
GIGAWATTS OF UTILITY SCALE SOLAR
PLANTS IN FOUR COUNTIES HERE ON
THE CENTRAL COAST. MY EXPERIENCE
IN RENEWABLES WAS REWARDING BUT
ALSO AS INFORMED ON THE
DIFFICULTIES IN THE UNKNOWN
CHALLENGES. I'M VERY EXCITED
ABOUT THE OFFSHORE WIND
OPPORTUNITIES WE HAVE HERE ON
THE CENTRAL COAST, AND I THINK
IT IS IMPORTANT FOR DIABLO TO BE
A BRIDGE WITH CAN PROVIDE
OPPORTUNITIES. THESE
OPPORTUNITIES INCLUDE THE
WORKFORCE AT THE NUCLEAR POWER
PLANT HAS A HAS A LEVEL OF
EXCELLENCE, AND THAT CAN BE
TRANSLATED THEN TO THE OFFSHORE
WIND WORKFORCE. THIS IS A
PROSPECT THAT WE MUST CONSIDER
AS THE FIRST LATINA SUPERVISOR
ELECTED TO SAN LUIS OBISPO
COUNTY. I ALSO WANT TO ENSURE
THE RELIABILITY AND
AFFORDABILITY TO THE POPULATIONS
THAT ARE HARDEST HIT WITH
CLIMATE AND ENERGY COSTS. AS
NOTED BY THE GOVERNOR'S OFFICE.
THERE IS A POTENTIAL FOR DIABLO
OPERATIONS AS A RESOURCE TO HELP
COVER COSTS AND RECOVER THESE
COSTS TO INVEST IN OTHER
IMPORTANT ASPECTS. LASTLY THE
RELIABILITY OF THE GRID IS
HAPPENING IN OTHER STATES AND
COUNTRIES AS THEY TRANSITION TO
CARBON FREE ENERGY ACROSS THE
BOARD. THEY'RE SCRAMBLING SO I
WOULD ASK FOR ALL OF US TO BE
PATIENT, BUT ALSO TO BE ACTIVE
AND TO BE PROACTIVE IN BEING
ABLE TO ADDRESS THESE
RELIABILITY ISSUES BECAUSE THESE
ARE LIFE AND DEATH DECISIONS. SO
COUNTY IS PREPARED TO EMBRACE
EMBRACE DIABLOS ROLE IN THE
STATES PRESENT ENERGY REALITY
BUT ALSO ACTIVELY PLAN FOR OUR
ROLE IN A RENEWABLE ENERGY
FUTURE WITH PLANS FOR A CLEAN
TECH INNOVATION PARK AT CAL POLY
AND THE FUTURE BUILD OUT OF THE
OFFSHORE WIND AT THAT SITE WERE
DABBLING SITS FOR THESE REASONS
, I CONSIDER THE OPTION OF
EXTENSION OF DIABLO AS A
RELIABLE SOURCE OF CARBON FREE
ENERGY CRITICAL AND RESPONSIBLE
ACTION TO ENSURE THE SAFETY AND
WELL BEING OF MY OWN COMMUNITY,
AS WELL AS THE ENTIRE STATE OF
CALIFORNIA. THANK YOU VERY MUCH
. THOSE ARE MY COMMENTS TODAY
FOR PROVIDING LOCAL PERSPECTIVE
. UM, ASK SARAH PETERSON. CHAIR
OF THE DEVIL'S CANYON
INDEPENDENT SAFETY COMMITTEE,
UH, TO PRESENT THANK YOU,
CHAIRMAN GARCIA. I AM PER
PETERSON, A MEMBER OF THE DIABLO
CANYON INDEPENDENT SAFETY
COMMITTEE. I AM ALSO A PROFESSOR
OF NUCLEAR ENGINEERING AT THE
UNIVERSITY OF CALIFORNIA AT
BERKELEY, AND I SERVICE THE
CHIEF NUCLEAR OFFICER OF AN
ADVANCED REACTOR STARTUP NAMED
CAIRO'S POWER. THE D. C. I S C
WAS ESTABLISHED IN LATE. 1989 IS
A PART OF A RAPE CASE TO RECOVER
COSTS FOR THE CONSTRUCTION OF
THE PLANT. WITH THE CHARTER TO
MONITOR THE OPERATIONAL SAFETY
OF THIS PLANT. THE COMMITTEE HAS
THREE MEMBERS APPOINTED BY THE
CALIFORNIA ENERGY COMMISSION,
THE ATTORNEY GENERAL AND THE
GOVERNOR. I AM THE GOVERNOR'S
APPOINTEE. I WAS APPOINTED BY
GOVERNOR SCHWARZENEGGER AND RE
APPOINTED BY GOVERNOR BROWN AND
BY GOVERNOR NEWSOM. WE HOLD
THREE PUBLIC MEETINGS EACH YEAR
IN SOUND LUIS OBISPO COUNTY. WE
PUBLISHED ANNUAL REPORTS WHICH
ARE AVAILABLE AT THE COMMITTEE
WEBSITE AT WWW DOT D C. I S C
.ORG WE CONDUCT NINE FACT
FINDING VISITS TO THE PLANT
WHERE EACH YEAR WHERE WE REVIEW
TOPICS THAT ARE RELATED TO PLANT
SAFETY, INCLUDING OPERATIONS,
MAINTENANCE, ENGINEERING, HUMAN
PERFORMANCE, EMERGENCY
PREPAREDNESS, RADIATION
PROTECTION, OUTAGE, MANAGEMENT
AND OTHER TOPICS. WE ALSO
REVIEWED DOCUMENTS AND MEET WITH
THE STAFF OF OTHER OVERSIGHT
ORGANIZATIONS. FOR THE PLANT,
INCLUDING THE NUCLEAR REGULATORY
COMMISSION, THE INSTITUTE OF
NUCLEAR POWER OPERATIONS. AND
THE PLANTS OWNED NUCLEAR SAFETY
OVERSIGHT COMMITTEE. WE MAINTAIN
AN OPEN ITEMS LIST THAT CONTAINS
OVER 80 DIFFERENT AREAS FOR
REVIEW. WHAT UNIQUE ABOUT OUR
COMMITTEE IS THAT WE UPDATE THIS
OPEN ITEMS LIST AT EACH PUBLIC
MEETING SO THAT WE CAN
SYSTEMATICALLY INVESTIGATE AND
ANSWER QUESTIONS RAISED BY
MEMBERS OF THE PUBLIC AS WELL AS
BY OUR APPOINTING AGENCIES.
FOLLOWING THE NEGOTIATION OF THE
JOINT PROPOSAL IN 2016, OUR
COMMITTEE HAS SYSTEMATICALLY
REVIEWED TOPICS RELATED TO THE
PLANNED CESSATION OF POWER
OPERATIONS IN 2024 2025 FOR
UNITS ONE AND UNIT TWO AND
TRANSITION TO PLANT THE
COMMISSIONING. WE HAVE REVIEWED
TOPICS RELATED TO THE RETENTION
OF STAFF REDUCTIONS AND
PREVENTIVE MAINTENANCE AND
CANCELATION OF CAPITAL PROJECTS
FOR THEIR IMPACTS AND POTENTIAL
IMPLICATIONS FOR PLANT
OPERATIONAL SAFETY. IN OUR JUNE
PUBLIC MEETING. OUR COMMITTEE
DID DISCUSS THE IMPLICATIONS OF
A POTENTIAL POLICY CHANGE TO
EXTEND OPERATIONS OF DIABLO
CANYON. WE EMPHASIZE THAT
SUBSTANTIAL WORK WILL BE NEEDED
IF THE PLANT LIFE IS TO BE
EXTENDED. IT IS IMPORTANT TO
NOTE THAT PRIOR TO 2016, PG AND
E HAD COMPLETED SEVERAL MAJOR
CAPITAL PROJECTS TO SUPPORT
EXTENDED OPERATIONS THAT DO
ADDRESS SOME KEY TECHNICAL
ISSUES, THE MOST IMPORTANT BEING
THE REPLACEMENT OF THE STEAM
GENERATORS. THE REACTOR VESSEL
HEADS AND THE LOW PRESSURE
TURBINES IN THE PLANT THAT WORKS
DID OCCUR AND HAS BEEN COMPLETED
, HOWEVER, SHOULD THE STATE
POLICY CHANGE TO EXTEND
OPERATION OF THE PLANT ARE
COMMITTEE WILL NEED TO REVIEW
PLANS FOR AUGMENTED STAFF AND
RESUMING PREVENTIVE MAINTENANCE
AND PLANNING FOR REQUIRED
CAPITAL PROJECTS AS WELL AS
RESUMING IN R C REVIEW OF THE
LICENSE RENEWAL APPLICATION. I
APPRECIATE THIS OPPORTUNITY TO
REPRESENT THE CANYON INDEPENDENT
SAFETY COMMITTEE ON THIS PANEL
AND LOOK FORWARD TO ANSWERING
QUESTIONS. THANK YOU. THANK YOU
VERY MUCH WE WANT TO THE NEXT
PRESENTER HUNTER STERN. BUSINESS
REPRESENTATIVE FOR I B E. W.
THANK YOU. THANK YOU, CHAIR
GARCIA AND MEMBERS OF THE
COMMITTEE. UM I AM HUNTER STERN
. I B W LOCAL 12 45 LOCAL 12 45
REPRESENTS OVER 27,000 MEMBERS
WORKING IN NORTHERN AND CENTRAL
CALIFORNIA, NORTHERN NEVADA. UM
12,500 THOSE WORK AT PG NHIàU.
AND 400 WORK AT THE APPLE CANYON
NUCLEAR POWER PLANT. UM
REMAINDER. WORK AT UTILITIES
LIKES MUD AND OTHER MOSTLY
PUBLICLY OWNED UTILITIES, AS
WELL AS LIBERTY ENERGY, WHICH IS
A, UH, ANOTHER INVESTOR ON
UTILITY. UM SO 12 45 SUPPORTS
THE EXTENSION OF DIABLO CANYON.
UM, WE DO SO WELL, IT MIGHT BE
OBVIOUS, BUT IT'S NOT FOR THE
REASONS THAT ARE OBVIOUS. UM ARE
MEMBERS NEED RELIABLE ENERGY TO
PROVIDE TO CUSTOMERS JUST AS
MUCH AS THE CUSTOMERS NEED THAT
ENERGY? UM SPECIFICALLY, UH, WE
HAVE HAD ISSUES WHEN CUSTOMERS
UM, HAVE BEEN WITHOUT POWER FOR
WHATEVER REASON, PARTICULARLY
OVER THE LAST FOUR YEARS. UM AND
WE KNOW SOME OF THE MUCH MUCH OF
THAT HAS BEEN RELATED TO
WILDFIRE. UM THERE HAVE BEEN
OTHER OUTAGES. PEOPLE ARE VERY I
GUESS THE TERM WOULD BE GRUMPY
WHEN THEY DON'T HAVE ELECTRICITY
. UM BUT OUR MEMBERS ARE IN THE
FIELD AND THEY ANSWER THE
PHONES. AND IT'S US THAT THAT
THAT FRUSTRATION IS TAKEN OUT ON
. SO IT IS IMPORTANT FOR ALL OF
OUR MEMBERS WHETHER THEY WORK
FOR CONTRACTORS WHEN THEY WERE
DIRECTED, PARTICULARLY WHEN THEY
WORK DIRECTLY FOR PG AND E. UM
BUT EVEN SMART AND SOME OF THE
OTHER LARGER MUNICIPAL
UTILITIES, UM, THAT THERE IS
POWER ON THE GRID TO KEEP PEOPLE
SAFE. AND SECURE. AND THAT THAT
POWER IS DELIVERED SAFELY AND
RELIABLY, AND THAT'S THE
COMMITMENT THAT OUR MEMBERS
MAKE. UM, WITH REGARD TO DIABLO
CANYON. SPECIFICALLY UM, THERE
IS A WORKERS' POINT OF VIEW THAT
I'D LIKE TO SHARE. SO OUR
MEMBERS, UM, SHOW UP EVERY DAY.
UM, IT IS A UNIQUE WORKPLACE. UM
AS AS WAS DESCRIBED BY MR JONES
. THERE ARE NRC INSPECTORS ON
SITE DAILY. UM MY MEMBERS TELL
ME THAT THEY SHOW UP. WITHOUT
UNANNOUNCED IN THEIR WORKPLACE,
ASKING QUESTIONS, EXAMINING
PROCEDURES, THE MAINTENANCE SIDE
OF THE HOUSE EERY EVERY MORNING
THAT WORK GROUP IN ACTUALLY,
MANY WORK GROUPS HAVE DAILY TAIL
BOARDS, EXPLAINING, UM WHAT THE
TASKS ARE FOR THE DAY REVIEWING
THE SAFETY, UH, PROCEDURES AND
CONDITIONS THAT THEY WILL WORK
ON THAT DAY. AND THEN THEY GO
OUT AND DO THE WORK. UM AND WE
AND THOSE MEMBERS, ALL OF OUR
MEMBERS WHO WORK AT DABBLER ARE
PROUD OF THE SAFETY RECORD OF
THE PLANT. BUT I DO WANT TO
MENTION IN PARTICULAR THE
NUCLEAR OPERATORS. UM THE
OPERATIONS SCHEDULE IS A FIVE
WEEK SCHEDULE. UM ONE OF THOSE
FIVE WEEKS THEY ARE THEY ARE IN
TRAINING THE WHOLE WEEK. UM THE
LICENSED OPERATORS ARE THE ONES
IN THE CONTROL ROOM. UM VERY
MUCH. UNLIKE HOMER SIMPSON AND
THE SIMPSONS CARTOON. THESE ARE
PEOPLE WHO ARE LICENSED BY THE
NRC. UM AND THEY THEMSELVES IN
ADDITION TO THE TRAINING THAT
THE CREW PERFORMS ON THAT FIVE
WEEKS SCHEDULE THAT ONE WEEK OF
TRAINING, THEY SIT THROUGH
SIMULATIONS OF PROBLEMS.
DISASTERS OF EVERY KIND, UM, AT
LEAST IN THE SIMULATIONS OCCUR
10 TIMES A YEAR. SO BASICALLY,
OUR MEMBERS ARE LITERALLY TWO
TO, UM, MODIFYING OFT USED
PHRASE. THEY WORKED FOR THE BEST
AND THEY PREPARE FOR THE WORST.
AND IT'S A COMMITMENT AND THAT
IS SPREAD ACCORD THAT THE THAT
ARE MEMBERS, UM, SERVE THE
CUSTOMERS. THE CUSTOMERS WHO
ENJOY THE ELECTRICITY THAT
DISABLED PROOF, UM PRODUCERS. UM. 12 45 AND IS ALSO A MEMBER OF
THE CALIFORNIA COALITION OF
UTILITY EMPLOYEES. QUÊ BOTH OF
THOSE, BOTH OF OUR ORGANIZATIONS
SIGNED ON TO THE JOINT PROPOSAL.
UM, THIS IS A ACTUALLY A
REMARKABLE DOCUMENT AND A
REMARKABLE AGREEMENT. UM AND I
WANTED TO WELL AND WE OBVIOUSLY
SUPPORTED WE SUPPORTED. WE
CONTINUE TO SUPPORT IT, BUT I
WANT TO READ YOU THE TITLE AND I
WON'T READ ALL THE NAMES OF THE
PARTIES BECAUSE THAT WOULD TAKE
TOO LONG. THE JOINT PROPOSAL IS
TO RETIRE, DABBLE CANYON. AND
REPLACE IT WITH A PORTFOLIO OF G
H G FREE RESOURCES. NOW
OBVIOUSLY, THERE'S MUCH MORE TO
THE AGREEMENT. BUT THAT TITLE
ENCAPSULATES WHAT THE WHAT THE
DEAL WAS WHAT THE COMMITMENT
WAS, UM AND WE FOUGHT HARD TO
IMPLEMENT IN A AND HAVE THAT
DEAL APPROVED. WE OBJECTED TO
THE TO THE TERMS OF THE OF THE C
P U. C. JOINT PROPOSED DECISION
. UM WE BROUGHT THOSE OBJECTIONS
TO THE LEGISLATURE AND I SHOULD
ALSO THANK THE STAFF THE
COMMITTEE STAFF FOR PREPARING A
VERY THOROUGH UM, BACKGROUND
SUMMARY, WHICH EXPLAINS ALL
THESE STEPS IN SUCH A SHORT TIME
. UM WE HELPED WE WERE SPONSORED
TO SP 10 90. UM AND WE WORKED
VERY HARD TO GET THAT PASSED AND
SIGNED BY GOVERNOR BROWN IN
2018. UM AND YET, REGRETTABLY.
UM THE CPUC DID NOT APPROVE
RESOURCES TO ENACT THAT
AGREEMENT UNTIL LAST YEAR. AND
IT'S PUT US IN A VERY BAD
POSITION. BECAUSE WE DO HONOR
AND WILL HONOR OF JOINT PROPOSAL
, BUT WE CAN'T HONOR SOMETHING
WHERE THE OTHER PIECE OF THE
AGREEMENT HAS NOT BEEN ACHIEVED.
AND WE STAND READY AND SUPPORT
THE ADMINISTRATION'S POSITION.
UM, THAT DIABLO CANYON SHOULD
CLOSE. AND DECOMMISSION. UM,
WHEN THAT. DEAL IS ACHIEVED OR
HONORED. AND I THINK, LASTLY,
OUR MEMBERS HAVE BEEN VERY
ENGAGED IN BOTH PLANNING FOR
DECOMMISSIONING. AND WE WILL
HAVE MEMBERS WORKING AT THE
PLANT. ON DECOMMISSIONING AFTER
THE UNITS SHUT DOWN. AND THAT IS
A BIG PART OF THE AGREEMENT
BETWEEN 12 45. MP JEANNIE. AND
WITH THAT, I WILL. THANK YOU FOR
ALLOWING US TO GIVE THESE
COMMENTS. THANK YOU. EDWARD DOES
ADVISOR FOR THE CLEAN POWER
CAMPAIGN. GOOD MORNING, CHAIRMAN
GARCIA AND MEMBERS OF THE
COMMITTEE. THANK YOU FOR THE
OPPORTUNITY TO ADDRESS YOU THIS
MORNING. I'M ED SMELL OFF, AND
UH, REPRESENTING THE CLEAN POWER
CAMPAIGN, WHICH IS A COALITION
OF ENVIRONMENTAL ORGANIZATIONS
AND CLEAN ENERGY TECHNOLOGY
PROVIDERS. SO I WANT TO MAKE
THREE POINTS TODAY. THE FIRST IS
RELATED TO RELIABILITY, THE
SECOND GREENHOUSE GAS EMISSION
REDUCTIONS AND THE THIRD OR SOME
SHORT TERM SUGGESTIONS ON WHAT
CAN BE DONE TO IMPROVE
RELIABILITY AND REDUCE
GREENHOUSEGAS REDUCTIONS. I
COMPLETELY AGREE WITH WHAT DR
QUIRKE SAID EARLIER THIS MORNING
. WE ARE SEEING MORE SEVERE,
MORE FREQUENT IMPACTS OF CLIMATE
CHANGE. THAT IS PATENTLY
OBVIOUS. NO ONE CAN DENY THAT,
HOWEVER. I DO WANT TO MAKE A
POINT. THAT IF YOU LOOK OVER THE
PAST 15 YEARS AT PEAK DEMAND IN
CALIFORNIA, IT'S ACTUALLY
DECREASED. THE PEAK DEMAND FOR
THE CAISO SYSTEM OCCURRED IN
2006. IT'S GOING DOWN BY 12.5.
FOR THE PEAK IN 2021. IT HAS NOT
EXCEEDED THAT YET IN 2022. I
THINK WE KNOW THE REASON WHY
THAT HAPPENED. IT'S THE
EXTRAORDINARY POLICIES OF
CALIFORNIA TO INVEST IN ENERGY
EFFICIENCY LOAD MANAGEMENT AND
BEHIND THE METER SOLAR
GENERATION AND BATTERY
GENERATION. WE'VE BEEN ABLE TO
MANAGE THE LOAD IN COOPERATION
WITH THIS, THE CITIZENS OF THIS
STATE SO THAT WE HAVEN'T
INCREASED DEMAND ON THE PEAK
ACTUALLY HAS A NAME. IT'S CALLED
THE ROSENFELD EFFECT NAMED AFTER
ART ROSENFELD, THE ILLUSTRIOUS
SCIENTISTS AND FORMER
COMMISSIONER AT THE CALIFORNIA
ENERGY COMMISSION HAS BEEN
PROMOTED. KAREN DOUGLAS HAS BEEN
A MAJOR CHAMPION OF THIS, AND
HIS DESERVES A LOT OF CREDIT FOR
PUTTING THIS IN PLACE OVER THE
LAST DECADE AND A HALF. UH IT'S
BIPARTISAN. IT'S BEEN SUPPORTED
BY REPUBLICAN ADMINISTRATIONS
AND DEMOCRATIC ADMINISTRATIONS.
GOVERNOR SCHWARZENEGGER HAD A
KEY ROLE IN THIS WHEN HE
INITIATED THE CALIFORNIA SOLAR
INITIATIVE AND SO WE KNOW IT'S
WE HAVE THE TOOLS TO MANAGE PEAK
LOAD. IT'S IN OUR D N A. WE NEED
TO DOUBLE DOWN ON THIS, AND I'LL
HAVE A FEW SUGGESTIONS AT THE
END OF MY PRESENTATION. SECONDLY
I COMPLETELY AGREE THAT ELECTRIC
SYSTEM. RELIABILITY IS A PUBLIC
GOOD. IT IS A SHARED
RESPONSIBILITY OF ALL LOAD
SERVING ENTITIES ACROSS THE
STATE. NOW THE FRAMEWORK FOR
RELIABILITY IN CALIFORNIA. IT'S
CALLED RESOURCE ADEQUACY, AND IT
SAID DELEGATED FRAMEWORK TO
SPECIFIC LOAD SERVING ENTITIES.
THEY ARE RESPONSIBLE FOR
MAINTAINING SUFFICIENT CAPACITY
TO MEET THE LOADS WITHIN THEIR
JURISDICTIONS. SO FOR INSTANCE,
WHERE I LIVE UP IN TRINIDAD,
CALIFORNIA IT'S THE REDWOOD
COAST ENERGY AUTHORITY I USED TO
WORK IN SAN FRANCISCO IS SAN
FRANCISCO CLEAN ENERGY WHERE
WORKED FOR DEVELOPING SOLAR
POWER PLANTS IN RICHMOND? IT WAS
MORE IN CLEAN ENERGY. EACH OF
THESE MANY ENTITIES AND THERE'S
ABOUT 40 HAVE THE RESPONSIBILITY
FOR RESOURCE ADEQUACY. IT ALL
HAS TO ADD UP SO THAT WE HAVE AN
ADEQUATE AMOUNT OF EXCESS
RESERVES TO KEEP THE LIGHTS ON,
UH, IN ALMOST ALL OCCASIONS NOW.
RELIABILITY IS A TRADE OFF
AGAINST AFFORDABILITY. YOU JUST
CAN'T HAVE AN INFINITE AMOUNT OF
RESOURCES AND ASSURED THAT THE
LIGHTS WILL NEVER GO OFF. WE
TYPICALLY HAVE DEVELOPED A
STANDARD AND KAREN DOUGLAS
MENTIONED THIS HOLD LOSS OF LOAD
. EXPECTATION IN THE STANDARD IS
ONCE IN 10 YEARS. AND THAT'S
PRETTY MUCH ACROSS THE UNITED
STATES, SO THERE'S A LITTLE BIT
OF MISINFORMATION HERE THAT THAT
STANDARD IS NO LONGER
APPROPRIATE. PERHAPS WE SHOULD
REVISIT. MAYBE IT SHOULD BE ONE
IN 20 YEARS, BUT THE KIND OF AD
HOC APPROACH THAT THE
ADMINISTRATION IS USED IN
SHOWING YOU THAT WERE AT GREATER
RISK. REALLY DOESN'T UNDERGO THE
KIND OF RIGOR PROBABILISTIC
ANALYSIS DONE BY A LIKE THE
PUBLIC UTILITIES COMMISSION
WOULD WOULD DO SO, YES, IT IS
IMPORTANT TO UNDERSTAND. WHAT
ARE THE INPUTS AND ASSUMPTIONS
THAT GO INTO THESE KINDS OF
STUDIES, AND THEY ARE CHANGING
BECAUSE OF CLIMATE CHANGE. WE
ARE SEEING MORE INTENSE HEAT
WAVES AND WE ARE SEEING THE
IMPACT OF RELIABILITY ON THERMAL
POWER PLANTS BECAUSE OF THE LACK
OF WATER FOR COOLING THEM, SO
THIS DOES HAVE AN IMPACT WE CAN
PUT TOGETHER ALL OF THE
ASSUMPTIONS THAT GO INTO THAT.
BUT THE ARGUMENT THAT WE'RE IN A
SEVERE RELIABILITY CRISIS I
DON'T THINK REALLY BEAR SCRUTINY
. LAST YEAR, THE PUBLIC
UTILITIES COMMISSION ADOPTED THE
MEANT MIDTERM OR LIABILITY ORDER
, AND THEY ORDERED THAT THE
STATE ALL OF THE LOAD SERVING
ENTITIES. IN PROPORTION THAT
THEIR RESPONSIBILITIES PROCURE
11.5 GIGAWATTS OF NET QUALIFYING
CAPACITY. AND THAT IS ENOUGH TO
MORE THAN REPLACED THE ONCE
THROUGH COOLING PLANTS THE
THERMAL PLANTS IN THE SOUTH
COAST AS WELL AS DIABLO CANYON,
AND, IN FACT, THE PUBLIC
UTILITIES COMMISSION SAID, WE'RE
GOING TO MOVE THE WHAT'S CALLED
THE PLANNING RESERVE MARGIN,
WHICH IS THE EXCESS CAPACITY
THAT YOU NEED TO HAVE TO ASSURE
RELIABILITY FROM 15% TO 20.7% SO
THEY RECOGNIZE THAT WE ARE
SEEING MORE AND CERTAINTY IN
WHETHER IN OTHER ISSUES, SO WE
NEED TO HAVE A HIGHER
RELIABILITY STANDARD. SO IT IS
APPROPRIATE THAT WE PROCURE THIS
11.5 GIGAWATTS OF NEW RESOURCES
TO KEEP THE LIGHTS ON AND IT AND
IT WILL DO THAT IT'S ACTUALLY
MEETING A HIGHER STANDARD. BUT I
DO WANT TO MENTION AND I THINK
THERE'S SOMETHING THAT THE
ADMINISTRATION DID GET RIGHT AND
THEIR PRESENTATION IS THAT IF WE
RETIRE DIABLO CANYON AT THIS
TIME WE WILL SEE AN INCREASE IN
GREENHOUSE GAS EMISSIONS OVER A
CERTAIN PERIOD OF TIME AFTER
THAT. IN ORDER TO PREVENT THAT
FROM HAPPENING. THE 11.5
GIGAWATTS IS NOT GOING TO BE
SUFFICIENT. WE HAVE TO ORDER
ADDITIONAL. WE HAVE TO HAVE A
PROCUREMENT ORDER TO GET
ADDITIONAL CLEAN ENERGY
RESOURCES IN PLACE, INCLUDING
CLEAN FIRM ENERGY, GEOTHERMAL
ENERGY, WHICH IS YOU KNOW, AS WE
THINK ABOUT THIS WE DO NEED WE
NEED CLEAN FIRM ENERGY. BUT A 40
YEAR OLD POWER PLANT HAS A LOT
OF YOU KNOW POTENTIAL PROBLEMS.
A LOT OF UNKNOWN UNKNOWNS THERE
WHEN WE'RE BUILDING A NEW SET OF
GEOTHERMAL POWER PLANTS AND
OTHER CLEAN FIRM ENERGY. THIS IS
GOING TO BE THE FUTURE. IT'S
GOING TO BE WHAT WE CAN RELY ON
FOR THE NEXT 2030 YEARS IN
PLACE. BUT IN ORDER TO DO THAT,
AND THIS IS REALLY SIGNIFICANT
POINT I WANTED TO MAKE AND IT'S
WHERE WE'VE KIND OF DROPPED THE
BALL IN CALIFORNIA. WE NEED TO
BUILD NEW TRANSMISSION SO THAT
WE CAN BRING THAT POWER FROM YOU
KNOW THE NORTH COAST FROM THE
OFFSHORE RESOURCES OF HUMBOLDT
COUNTY FROM IMPERIAL COUNTY FROM
YOU KNOW, THE DESERT INN IN
RIVERSIDE AND SAN BERNARDINO
COUNTIES INTO THE LOAD CENTERS.
IT'S GOING TO REQUIRE A
SIGNIFICANT AMOUNT OF INVESTMENT
IN NEW TRANSMISSION. WE NEED TO
GET STARTED. NOW I AM CONCERNED
THAT THIS FOCUS ON THE ABU
CANYON AND IT'S AND IT'S
EXTENSION IS CROWDING OUT THE
NECESSARY POLICY DECISIONS THAT
WE NEED TO MAKE TO ENSURE THAT
LONG TERM WE'RE GOING TO BE
REDUCING GREENHOUSE GASSES. 100
WE CAN DO THIS WITH UNION LABOR
BUILDING THESE TRANSMISSION
LINES AND NEW PROJECTS. I WILL,
MY FRIEND. I JUST WANTED TO
ADDRESS HIM DIRECTLY ON THAT SO
I WANTED TO. THE ASSEMBLY HAS
PUT TOGETHER A PACKAGE. I DON'T
KNOW ALL OF THE DETAILS IN IN
YOUR PACKAGE FOR ADDRESSING
CLIMATE ISSUES, BUT I'VE READ
THE BULLET POINTS AND I THINK
THERE'S SOME VERY IMPORTANT
INITIATIVES THAT YOU'VE PUT
TOGETHER AND THE REASON I SAY
THIS IS BECAUSE I DO WANT TO
MENTION ONE THING, AND IT IS AN
IMPORTANT POINT THERE IS GOING
TO BE A SHIFTING COSTS FROM THE
NORTHERN CALIFORNIA LOADS
SERVING ENTITIES TO THE SOUTHERN
CALIFORNIA LOAD SERVING
ENTITIES. RATES ARE GOING TO GO
UP FOR RESIDENTS OF SOUTHERN
CALIFORNIA AND SAN DIEGO. THEY
MAY GO DOWN A LITTLE BIT BECAUSE
OF THE WAY THAT THIS THIS THIS
AGREEMENT HAS BEEN STRUCTURED,
BUT IT IS NOT THERE ARE GOING TO
BE DIFFERENTIATED IMPACTS. IT'S
NOT GOING TO DO ANYTHING
SPECIFICALLY TO ADDRESS THE
EQUITY ISSUES IN CALIFORNIA. THE
CLIMATE, EQUITY ISSUES AND
REGARDLESS OF WHAT HAPPENS IN
DIABLO, I THINK THIS NEEDS TO BE
A PRIORITY THAT NEEDS TO BE DONE
IMMEDIATELY AS WE'RE ADDRESSING
THE RELIABILITY AND I THINK
THERE'S SOME VERY ATTRACTIVE
FEATURES OF WHAT YOU PUT
TOGETHER IN THE ASSEMBLY PLAN,
AND I'LL JUST SUPPORT THAT ONE
IS, YOU KNOW, AN EQUITY,
EQUITABLE COMMUNITY BASED SOLAR
AND STORAGE. SOLAR AND STORAGE
CAN BE BUILT VERY QUICKLY. I'VE
DONE THAT. WHEN I WORKED FOR
SUNPOWER CORPORATION, WE CAN GET
THESE PROJECTS BUILT
PARTICULARLY THE ONES ON THE
LOCAL GRID ON THE DISTRIBUTION
SYSTEM. WE CAN GET THEM BUILT IN
LESS THAN A YEAR. THIS IS GOING
TO BE A NEW, STRONG RESOURCE. I
DO WANT TO CORRECT ONE MINOR
MISTAKE THAT MISS DOUGLAS MADE
EARLIER ON THE INFLATION
REDUCTION ACT NOW PROVIDES A, UH. IN PRODUCTION, TAX INCENTIVE
AND INVESTMENT TAX INCENTIVE FOR
STANDALONE STORAGE SO WE CAN ADD
STORAGE TO EXISTING SOLAR
PROJECTS. THEY CAN BE CHARGED
BOTH BY THE SOLAR PROJECT AND BY
THE GRID AND CAPTURE THE FEDERAL
TAX BENEFITS. SO WE REALLY
INCENTIVIZED STORAGE BEING BUILT
ACROSS THE STATE. OBVIOUSLY
INVESTORS THROUGHOUT THE WORLD
OR SEEING WHAT HAPPENED WITH THE
INFLATION REDUCTION ACT, AND
THERE'S A LOT OF MONEY POURING
INTO TECHNOLOGIES TO BE ABLE TO
ADDRESS CLIMATE CHANGE. LET ME
GET BACK TO THE EQUITY ISSUES.
SO YOU HAVE THIS COMMUNITY BASED
SOLAR AND STORAGE $240 MILLION.
YOU HAVE WHAT I SURE. ALSO
THERE'S A PROPOSAL TO HAVE
GRANTS FOR AN EQUITABLE BUILDING
DECARBONIZATION PROGRAM THAT
WOULD INSTALL EFFICIENT
APPLIANCES, LIGHTING, INSULATION
AND OTHER INFRASTRUCTURE
DIRECTED TO LOW INCOME CUSTOMERS
IN CALIFORNIA. THESE ARE THINGS
THAT NEED TO BE FUNDED, WHICH I
THINK YOU KNOW YOU COULD MAKE A
STRONG CASE THAT THESE ARE
BETTER USES OF THE $1.4 BILLION
AND A FIVE YEAR EXTENSION OF
DIABLO CANYON, AND THERE'S THERE
IS A NEED TO PUT THIS MONEY TO
BENEFIT THE PEOPLE WHO HAVE NOT
BENEFITED AS MUCH. FROM THE ROSE
IN VIA FELT EFFECT. WE NEED TO
MAKE SURE THAT THIS IS EQUITABLE
THAT WE THAT THERE'S OPPORTUNITY
FOR LOW INCOME FAMILIES TO HAVE
SOLAR IN THEIR COMMUNITIES AND
THEIR HOUSEHOLDS TO INVEST IN
THE ENERGY EFFICIENCY AND LOAD
MANAGEMENT TECHNOLOGIES THAT YOU
KNOW ARE AVAILABLE, SO I THINK
THERE IS A BETTER WAY. AND UH I
REALLY THANK YOU FOR THE
OPPORTUNITY TO ADDRESS THE
COMMITTEE TODAY. AND I WOULD
WELCOME ANY QUESTIONS LATER.
THANK YOU. AND I KNOW THAT OUR
COLLEAGUES HERE ON THE DINOSAUR
EAGER TO ASK QUESTIONS. AND WE
WILL GET THERE VERY SHORTLY.
MARK TONY IS THE NEXT PRESENTER
FOLLOWED BY BRENNER SING AND, UH
AND THEN WE WILL DIVE INTO A
HANDFUL OF QUESTIONS THAT OUR
COLLEAGUES UP HERE HAVE TONY
FLOOR IS YOURS. DR TONY. THANK
YOU. THANK YOU. UH THANK YOU,
CHAIR GARCIA AND MEMBERS OF THE
COMMITTEE. MY NAME IS MARK TONEY
, EXECUTIVE DIRECTOR OF TURN THE
UTILITY REFORM NETWORK. TURN
UNDERSTANDS THAT CALIFORNIA HAS
AND ENERGY RELIABILITY CRISIS.
WE ALSO UNDERSTAND THAT
CALIFORNIA FAMILIES ARE FACING
AND ENERGY AFFORDABILITY CRISIS.
WHICH THIS COMMITTEE HAS HAD A
HEARING ON EARLIER THIS YEAR,
AND WE APPRECIATE THAT. IS
CONCERNED THAT THE GOVERNOR'S
PROPOSAL THAT THE TERMS OF THE
PROPOSAL TO EXTEND DIABLO KENYAN
OPERATION IS A TERRIBLE DEAL
THAT IS GOING TO ENRICH PG AND E
SHAREHOLDERS AT THE EXPENSE OF
RESIDENTIAL, COMMERCIAL AND
INDUSTRIAL RATEPAYERS ACROSS THE
STATE. AND WE'LL MAKE THE
AFFORDABILITY CRISIS EVEN WORTH
BY INCREASING MONTHLY BILLS. THE
I DON'T NEED THIS UP RIGHT NOW.
THANK YOU VERY MUCH. I'LL LET
YOU KNOW. UM SO. I AM. SO THE
FIRST CONCERN IS THAT RATEPAYER
BUILD WILL SKYROCKET. SO THERE
IS IN THIS DEAL OF FIXED
MANAGEMENT FEE OF $100 MILLION A
YEAR STARTING IN 2025. COLLECTED
BY A NON BY PASSABLE CHARGE ON
ALL CUSTOMERS IN CALIFORNIA
INVESTOR OWNED SERVICE
TERRITORY. PG ANY. EDISON SAN
DIEGO GAS AND ELECTRIC INCLUDES
ALL C C A S AND ALL DIRECT
ACCESS CUSTOMERS. THESE FUNDS
ARE DEDICATED TO PG AND E
SHAREHOLDER PROFITS. TWO.
THERE'S A VOLUMETRIC FEE OF $20
PER MEGAWATT HOUR FOR PRODUCTION
STARTING IN 2025. ESTIMATED AT
$360 MILLION A YEAR BASED ON
HISTORIC GENERATION LEVELS. 50%
OF THIS VOLUMETRIC FEES
COLLECTED BY THE NON BY PASSABLE
CHARGE ON CUSTOMERS ACROSS THE
STATE. THE FUNDS ARE DEDICATED
TO PG AND E SHAREHOLDER PROFIT.
THE ACTUAL COST OF THE ADVIL.
KENYAN OPERATIONS WILL BE BILLED
TO CUSTOMERS AND EXEMPTED FROM
CPUC. REASONABLE NOUS REVIEWS
THAT CONCERNED THAT SO. STARTING
IN 2025, ALL THE ABLE CANYON
COST CAPITAL OPERATIONS, FUEL
INSURANCE TAXES, PENSION
BENEFITS, MITIGATIONFEES. FUEL
STORAGE WILL BE COLLECTED FROM
ELECTRICITY CUSTOMERS ALL ACROSS
THE STATE, AND THERE ARE NO
MECHANISM FOR CONSTRAINING
COSTS. OR LIMITING THE
LIABILITY. OF PG AND E TO
RECOVER UNLIMITED SPENDING. ON
DIABLO CANYON, YOU KNOW,
ELECTRICITY RATE. NOW I'M GONNA
MOVE TO CONCERN ABOUT, UH,
WINDFALL PROFITS FOR PG AND E
SHAREHOLDERS. MY FIRST CONCERN
IS THAT PG AND E SHAREHOLDERS
WOULD BE UNREASONABLY. IN
INSULATED FROM LIABILITY FOR THE
1ST $300 MILLION OF COSTS
STEMMING FROM OUTAGES CAUSED BY
MISMANAGEMENT. IN 2020 AND 2021
. DIABLO CANYON SUFFERED ALMOST
150 DAYS OF OUTED IT OUTAGES.
DUE TO OPERATIONAL PROBLEMS THAT
UNIQUE TO REVOLTING IN
REPLACEMENT POWER COST OF $179
MILLION UNDER CURRENT RATE,
MAKING PD AND HE MAY BE
RESPONSIBLE FOR THESE COUGH IF
THEY'RE FOUND TO BE NEGLIGENT.
BUT UNDER THE GOVERNOR'S
PROPOSAL, RAY PAIRS WOULD BE
LIABLE FOR FUTURE OUTAGE CAUSES
EVEN IF THE OUTAGE IS CAUSED BY
PJ ANY IMPRUDENCE, MISMANAGEMENT
OR NEGLIGENCE. NOW I'M GONNA I'M
GONNA ASK, UM, FOR PAGE THREE OF
MY PRESENTATION TO BE PUT UP
BECAUSE I'M GOING TO TALK ABOUT
THE ANNUAL PROFITS. PG AND E IS,
UM. OH YES. IF YOU CAN GO TO
PAGE OKAY, HERE WE GO. THIS IS
IT. SO I MEAN, WHAT FISH SHOW OF
IS THAT OKAY FROM 2017 TO 2021.
AH! AH PG AND E SHAREHOLDERS
COLLECTED ABOUT $160 MILLION A
YEAR. NOW IT'S SLATED TO GO DOWN
IN 23 THROUGH 25 TO ABOUT 140
YEAR. BUT UNDER THIS NEW
PROPOSAL, THE GOVERNOR'S
PROPOSAL THERE WOULD BE AN
ADDITIONAL 204 MILLION ON TOP OF
THAT OF SHAREHOLDER PROFITS. AND
THEN WHEN YOU GET TO 2026 TO
2030 THAT GOES UP TO 468 YEAR.
WE JUST CAN'T FIGURE OUT WHY P
GENUS SHAREHOLDERS SHOULD BE
GETTING SO MUCH MORE PER YEAR
AND PROFITS FOR EXTENDING THE
PLANT. CAN YOU GO TO THE NEXT
ONE, PLEASE? THANK YOU. I
APPRECIATE IT. SO WITH THIS
CHART DOES IS IT SHOWS THE
CUMULATIVE AMOUNT THAT, UM, A
SHAREHOLDER PROFITS BEING
COLLECTED. NO IT BY 2025
UNDERNEATH THE CURRENT PG AND E
SHAREHOLDERS WOULD WOULD COLLECT
300 ABOUT 350. MILLION OKAY, AND
THAT STAYS THE SAME FOR 2030
BECAUSE THE PLANT WOULD BE SHUT
DOWN. THERE'S NO ADDITIONAL
COLLECTION, BUT ACCORDING TO THE
TERMS OF THIS PLAN THAT YOU SEE
BEFORE YOU BY 2025 THAT 350
BALLOONS TO 962 MILLION, AND IF
YOU ADD UP ALL OF THE PROFITS
YEAR AFTER YEAR BY 2030 WE'RE
TALKING ABOUT OVER $3 BILLION
THAT'S REAL MONEY. THANK YOU
VERY MUCH. WE CAN THAT THOSE ARE
MY 25. MY FINAL POINT. IS GOING
TO BE TO SHARE WITH THE
COMMITTEE KEY PRINCIPLES. BREAK
EXTENDING DIABLO CANYON THAT
IT'S FAIR TO RATEPAYERS. FAIR TO
TAXPAYERS. AND ALSO FAIR TO
SHAREHOLDERS WITHOUT GIVING THEM
WINDFALL PROFITS. PRINCIPLE. ONE
MAKE TREAT AFFORDABILITY. AS
EQUALLY IMPORTANT AS
RELIABILITY. T. NO WINDFALL
PROFITS FOR PG AND E
SHAREHOLDERS. CAP FUTURE ANNUAL
SHAREHOLDER PROFITS FROM DIABLO
CANYON AT 2023. 25 LEVELS, WHICH
IS NO MORE THAN 100 AND $40
MILLION PER YEAR. THREE HOLD THE
GENIE ACCOUNTABLE FOR
MISMANAGEMENT OR NEGLIGENT IF
THE PLANT GOES DOWN. ELIMINATE
SHAREHOLDER PROTECTIONS FOR
REPLACEMENT POWER COSTS. FOUR
PRESERVE THE INTEGRITY OF THE
CPSC. REASONABLE NOUS REVIEW OF
ALL COSTS FOR OPERATING THE PLAN
AND RETAIN EX PARTY RULES FOR
TRANSPARENCY. THERE ISN'T THE
GOVERNMENT GOVERNOR'S PROPOSAL A
SUSPENSION OF EX PARTY RULED IN
THE FIRST DAY AGE. OF THE
PROCEEDING. THAT'S JUST WRONG.
WE NEED TRANSPARENCY. FIVE.
PROTECT REPAIRS FROM ADDITIONAL
MONTHLY BILLS. DUE TO KEEPING
THE ADVIL KENYAN OPEN. SIX
ALLOCATE ANY FOR PLUS FUNDS FROM
SELLING POWER TO AFFECT AND
REDUCE RATEPAYER COSTS IN
RECOGNITION OF TENS OF BILLIONS
OF DOLLARS ALREADY INVESTED IN
DIABLO CANYON. DO NOT LET PG ANY-YOUTH EXCESS FUNDS OF A FLASH
FRONT TO DO WHAT THEY WANT
WITHOUT CPUC REVIEW THAT'S
IMPORTANT SEVEN TAKE THE TIME
NECESSARY. PLEASE AS
POLICYMAKERS. TO UNDERSTAND THE
CONSEQUENCES OF THE GOVERNOR'S
PROPOSAL AND REMEDIES TO ENSURE
THE GREATEST PUBLIC BENEFIT.
FINANCIALLY AND AS A BACKUP
RESOURCE. AND FINALLY DEFER
ACTION ON THE BIG QUESTION OF
WHO PAYS AND WHO PROFITS FROM
THE ABLOW CANYON UNTIL JANUARY
TO PROVIDE THE LEGISLATURE WITH
SUFFICIENT TIME TO GET IN THE
APPENDED ANALYSIS. THANK YOU
VERY MUCH. THANK YOU, SIR. WE
HAVE OUR LAST PRESENTER AND, UH
, WE WILL JUMP RIGHT INTO
QUESTIONS AFTER THAT WERE
INTERESTING. VICE PRESIDENT,
REGULATORY AND LEGISLATIVE
AFFAIRS FOR E. D. F. THANK YOU,
CHAIRMAN GARCIA, MEMBERS OF THE
COMMITTEE FOR THE OPPORTUNITY TO
SPEAK TODAY. I'M VIRENDER SINGH
, VICE PRESIDENT OF INDIA
RENEWABLES, WHEREAS SAN DIEGO
HEADQUARTER DEVELOPER AND
OPERATOR OF CLEAN ENERGY
PROJECTS THROUGHOUT CALIFORNIA
AND NORTH AMERICA. OUR ROOTS
ACTUALLY BEGAN HERE IN
CALIFORNIA, PARTICULARLY
SOUTHERN CALIFORNIA AMIDST THE
BIRTH OF WIND, ENERGY AND PALM
SPRINGS AND TO HATCH A B WE HAVE
GROWN TO BUILD WIND PROJECTS ALL
THE WAY UP TO THE DELTA NEAR RIO
VISTA SOLAR PROJECTS FROM
SACRAMENTO THROUGH THE CENTRAL
VALLEY AND TO THE MOJAVE AND NOW
ENERGY STORAGE PROJECTS, COUPLED
WITH THEIR MORE RECENT SOLAR
PROJECTS PROVIDE POWER TO ALL
THREE MAJOR I O U S. NUMEROUS C
. C. A S MUNICIPAL UTILITIES AND
WELL KNOWN CALIFORNIA COMPANIES
DIRECTLY. I NEED NOT RECITE THE
HISTORY OF RENEWABLE ENERGY TO
THIS KNOWLEDGEABLE COMMITTEE.
AMIDST TODAY'S FOCUS ON NUCLEAR
ENERGY. IT'S ALSO USEFUL TO
REMEMBER THAT CALIFORNIA
INCUBATED WHAT HAS BECOME THE
GLOBAL RENEWABLES INDUSTRY. AND
MUCH OF MUCH HAS BEEN DONE SINCE
THEN TO EXPAND RENEWABLE ENERGY
AND ENERGY STORAGE IN THE STATE.
WE AND MANY FELLOW COMPANIES
HAVE BEEN BUILDING PROJECTS BOTH
LARGE SCALE AND DISTRIBUTED
DRIVING DOWN ECONOMY WIDE GHG
EMISSIONS, PROVIDING ESSENTIAL
RELIABILITY AND DELIVERING JOBS.
OF PARTICULAR IMPORTANCE IN
RECENT HISTORY AND DUE TO THE
LEADERSHIP OF THIS
ADMINISTRATION. RENEWABLE ENERGY
CONTRACTS, AND THEIR AND THEIR
UNDERLYING PROJECTS WERE KEPT IN
TACT AND RUNNING AMIDST THE RISK
OF PJD BANKRUPTCY. I DID NOT
COME HERE WITH THE POSITION OF
DIABLO CANYON. I COME HERE TO
HIGHLIGHT THE BRASS TACKS NEEDS
TO GET MORE RENEWABLE ENERGY
ONLINE IN CALIFORNIA. THESE NEED
TO BE PRIORITIZED FOR FUNDING
AND ACTION, WITH ALL THE
PROGRESS IN THE STATE NOTED AND
APPRECIATED ABOVE. THE TOP NEWS
IS THAT THIS IS A MARATHON AND
WE ARE NOWHERE NEAR THE HALFWAY
POINT. THE FOLLOWING ARE WHAT
ARE ABSOLUTELY ESSENTIAL TO MAKE
OUR STATE SUCCEED. AND MEETING
AT THE OBLIGATIONS TO THE
ENVIRONMENT AND TO RELIABLE,
AFFORDABLE ENERGY SERVICE FOR
ALL. WE DO NOT TEND TO THESE
INFRASTRUCTURE POLICIES STRONGLY
EMPHASIZE THE SUBSTANCE HERE IS
REALLY ABOUT INFRASTRUCTURE
POLICY AND NOT ABOUT CLIMATE
POLICY. THEN WE COULD BE IN AN
ENDLESS LOOP OF LAST MINUTE
SCRAMBLES TO KEEP THE LIGHTS ON
WHILE ADDRESSING THE CLIMATE
CRISIS. FIRST AND FOREMOST. AND
HEARKENING TO WHAT ED SMELL OFF,
MENTIONED AND HIGHLIGHTED.
TRANSMISSION IN PARTICULAR NEEDS
URGENT ACTION, AND THAT INCLUDES
PERSISTENT DELAYS BY
TRANSMISSION OPERATORS AND
INTERCONNECTING RENEWABLE
PROJECTS TO THE GRID TODAY. FOR
ALL OF OUR HISTORY IN CALIFORNIA
. WE AS E D. F DO NOT SEE A
FUTURE IN THIS STATE STARTING IN
THE LATTER HALF OF THIS DECADE.
BY THEN THERE WILL BE SO LITTLE
AVAILABLE TRANSMISSION CAPACITY
THAT NEW PROJECTS BY US OR
ANYBODY ELSE CANNOT GET FULL,
DELIVER ABILITY AND THEREFORE
CANNOT PROVIDE FULL RELIABILITY
BENEFITS TO THE GRID. THE FULL
RESOURCE ADEQUACY, SO TO SPEAK
TO REFERENCE, THE IMPORTANT TERM
THAT ADD RAISED. THIS IMMINENT
TRANS THIS IMMINENT TRANSMISSION
SHORTAGE NEEDS URGENT ATTENTION
TODAY IN TRANSMISSION, PLANNING,
AUTHORIZATION AND FUNDING.
SECOND, WE NEED ATTENTION TO
PERMITTING. NEEDED BUILD OUT FOR
A CLEAN GRID REQUIRES CAREFUL
BALANCING OF ENERGY COMMUNITY
AND THE NATURAL ENVIRONMENT. THE
ANSWERS ARE RARELY EASY, BUT
THEY REQUIRE PEOPLE TECHNICAL
RESOURCES AND EFFICIENT
PROCESSES TO STRIKE THAT
BALANCE. AND THIRDLY, WE NEED
ATTENTION TODAY TO THE PRESENCE
PRESENT AND THE FUTURE OF ENERGY
STORAGE AND NOT ONLY INCLUDES
BATTERIES, BUT THAT INCLUDES
MEDIUM AND LONG DURATION STORAGE
IN BOTH BALKAN DISTRIBUTED
CONFIGURATIONS. THAT WORK
REQUIRES FOLSOM REGULATORY
DELIBERATION, PLANNING AND
SUBSEQUENT PROCUREMENT. WE, AS
AN INDUSTRY HAVE BROUGHT THREE
GIGAWATTS OF BATTERIES ONLINE
OVER THE LAST TWO YEARS,
PROVIDING ESSENTIAL RELIABILITY
SERVICES TO THE GRID. BUT TO
REHASH THE MARATHON METAPHOR,
STORAGE. WE'RE NOT EVEN AT THE
FIVE MILE MARK. GOOD NEWS. IS
THAT BEGINNING AS OF LAST WEEK
THERE IS NOW A 30% FEDERAL
INVESTMENT TAX CREDIT FOR
STANDALONE STORAGE AS WELL AS
INCENTIVES FOR A WHOLE OTHER
ARRAY OF CLEAN ENERGY
TECHNOLOGIES THAT THIS DATE CAN
LEVERAGE SMARTLY. ALL THESE
EFFORTS. MM HMM. COMMENTS BACKED
WITH ALL THESE EFFORTS IS THAT
THEY REQUIRE STEADY, CONSISTENT
AND MULTIYEAR ATTENTION ACROSS
ADMINISTRATIONS AND ACROSS
LEGISLATIVE SESSIONS. WITH THE
LEADERSHIP HERE. WE ARE HOPEFUL
THAT WE AS CALIFORNIA CAN STAY
THE COURSE. BUT IT'LL TAKE HARD
WORK AND, MOST IMPORTANTLY, HIGH
PRIORITIZATION OF THE IMPORTANT
DETAILS. THE INFRASTRUCTURAL
DETAILS THAT I MENTIONED ABOVE.
THANK YOU AGAIN FOR THE
OPPORTUNITY TO SPEAK. THANK YOU
VERY MUCH. WE HAVE BIGGER GROUP
OF LEGISLATORS THAT A HANDFUL OF
QUESTIONS. I KNOW YOU'RE
MURATSUCHI HAS A COMMENT HE
WANTS TO MAKE BEFORE HE STEPS
OUT FOR A MINUTE AND THEN FIRST
SET OF QUESTIONS WILL COME FROM
MR TEEN DOCTOR QUIRKE, AND THEN
I'LL LOOK TO MY LEFT HERE. GO
FROM THERE. THANK YOU, MR
CHAIRMAN, I APOLOGIZE AGAIN. I
HAVE TO AH LEAVE FOR SOME
IMPORTANT CLIMATE PACKAGE
RELATED DISCUSSIONS, BUT, UH, I
JUST WANTED TO, UH UM, TO STAY
BEFORE I LEFT MR CHAIR. THAT
THAT, UH YOU KNOW I ALONG WITH
THE MR WOOD AND SOME OF MY
COLLEAGUES IN THE ASSEMBLY. UM
AH. WE HAD AN OPPORTUNITY TO
VISIT FUKUSHIMA RIGHT BEFORE.
THE PANDEMIC. AND, UH, WE
VISITED THE COMMUNITIES
SURROUNDING THE FUKUSHIMA
DAIICHI NUCLEAR POWER PLANT. AND
IT IS A WASTELAND IT, UM,
COMMUNITIES THAT ONCE THRIVED
AROUND THE NUCLEAR POWER PLANT.
WERE ABANDONED. YOU CAN SEE THE
CARS AND THE HOMES PARKED WHERE
THE WEEDS ARE. YOU KNOW,
OVERTAKING THE COMMUNITY THAT
WAS ONCE THRIVING. AND I YOU
KNOW, I I'M NOT TRYING TO FEAR
MONGER HERE. BUT I WANT TO MAKE
SURE THAT WE ARE. AS SEVERAL
WITNESSES HERE HERE TODAY STATED
TO PUT SAFETY FIRST AND
FOREMOST, YOU KNOW. IT'S MY
UNDERSTANDING THAT THERE THERE
HAVE BEEN REVIEWS OF WHAT
HAPPENED AND FUKUSHIMA AND THERE
WERE BASICALLY TWO FUNDAMENTAL
PROBLEMS. THAT. HAPPENED THAT
LED TO THE FUKUSHIMA NUCLEAR
DISASTER. ONE IS THAT. THE
NUCLEAR PLANT WAS ALLOWED TO BE
DESIGNED. LICENSE AND
CONSTRUCTED. TO ONLY WITHSTAND
AN EARTHQUAKE AND TSUNAMI FAR
SMALLER THAN WHAT ACTUALLY
OCCURRED. AND SO, YOU KNOW, I
KNOW THAT WE'VE HEARD MANY
ASSURANCES TODAY ABOUT HOW THE
AND R C IS CHARGED WITH ENSURING
THE SAFETY AND THE PROTECTION OF
THE LOCAL RESIDENTS OF SAN LUIS
OBISPO COUNTY. BUT AGAIN, YOU
KNOW. WE CAN NEVER PLAN ENOUGH
FOR WHAT NATURE MOTHER NATURE
CAN UNLEASH. SECOND. THE
FUKUSHIMA DISASTER. WAS IN LARGE
PART CAUSED BY THE INEFFECTIVE
OVERSIGHT. OF AND THE COZY, TOO
COZY RELATIONSHIP BETWEEN THE
NUCLEAR UTILITY AND THE
REGULATOR THAT ALLOWED WHAT.
OBVIOUSLY IN HINDSIGHT ENDED UP
TO BE INADEQUATE SAFETY
REQUIREMENTS. AND SO IT. RAISES
ALL THE MORE MY DEEP CONCERN
ABOUT HOW WE ARE NOT ONLY
RUSHING THIS THROUGH BUT THAT.
WE ARE, AS THE PROPOSAL WAS
CALLING FOR A SEQUEL EXEMPTION.
FOR THE BYPASSING OF, UH, STATE
AGENCY OVERSIGHT. IT. SOUNDS
LIKE A RECIPE FOR DISASTER.
THANK YOU VERY MUCH, MR
CHAIRMAN. THANK YOU, MR TING.
LARGE YOURS. THANK YOU, MR
CHAIR. UM I'D LIKE TO. MAYBE
IT'S JUST START WITH THE FIRST
QUESTION TO MR PETERSON IF HE'S
STILL HERE. AND JUST ASK, UM YOU
KNOW, AS WE ANTICIPATE THE
RAMPING DOWN OF THE POWER PLAN,
THE ESTIMATE OR THE
UNDERSTANDING WOULD BE THAT I
ASSUME YOU'LL BE DOING LESS
MAINTENANCE. LESS INFRASTRUCTURE
. UM, GIVEN THAT WHAT WHAT I
ANTICIPATED ADDITIONAL. EITHER
YOU KNOW, SEISMIC OR MAINTENANCE
COSTS WOULD BE OCCURRING. DUE TO
US KEEPING THE FACILITY ONLINE
FOR ANOTHER FIVE OR 10 YEARS.
THANK YOU THAT THAT'S AN
EXCELLENT QUESTION. SO ONE OF
THE THINGS THAT THAT HAPPENED
AFTER THE 2016 DECISION TO, UM,
TO NOT EXTEND THE OPERATION OF
THE PLANT WAS THAT THE PLANT
WENT THROUGH A SERIES OF
EXERCISES TO IDENTIFY WHERE
CERTAIN PLANS FOR PREVENTIVE
MAINTENANCE AND CAPITAL PROJECTS
WITH NO LONGER BE NEEDED BECAUSE
THE CESSATION OF OPERATIONS AS
WOULD MITIGATE THE RISK OR
ELIMINATE THE NEED. AND SO OUR
COMMITTEE REVIEWED THOSE THOSE
PLANS WITH THE OBJECTIVE OF
ASSURING THAT INDEED, THOSE
CHANGES WOULD NOT RESULT IN ANY
CHANGE IN THE OPERATIONAL SAFETY
OF THE PLANT AS AN APPROACH THAT
PLANNED RETIREMENT, SO THE THING
THAT WILL NEED TO OCCUR SHOULD
THERE BE A POLICY DECISION TO
EXTEND THE OPERATION OF THE
PLANT WILL BE TO GO BACK AND
SYSTEMATICALLY. REVIEW ALL OF
THOSE THOSE THOSE ACTIVITIES
THAT HAD BEEN CANCELED AND TO
DETERMINE HOW TO RESTART THOSE
EFFORTS. WE SHOULD EXPECT THAT
WE WILL HAVE SOME REQUIREMENTS
TO EXTEND THE TIME FOR THE NEXT
THE UPCOMING OUTAGES FOR THE TWO
UNITS TO ALLOW FOR ADDITIONAL
WORK. IN OUR COMMITTEE WILL
REVIEW IN DETAIL THE WORK THAT
NEEDS TO BE DONE WITH RESPECT TO
THE COSTOF THAT ADDITIONAL
ACTIVITY. I CAN'T GIVE YOU AN
ANSWER AS TO WHAT THAT WOULD BE.
I NOT SURE THAT IT IS THAT LARGE
AGAIN BECAUSE SOME OF THE MOST
IMPORTANT OR EXPENSIVE CAPITAL
IMPROVEMENTS THAT ARE NECESSARY
FOR EXTENDING THE LIFE OF THIS
TYPE OF REACTOR HAD ALREADY BEEN
PERFORMED. AND AS I MENTIONED IN
MY PREVIOUS COMMENT IT'S THAT
INCLUDES REPLACEMENT OF THE
EIGHT LARGE STEAM GENERATORS.
THAT ARE IN THE PLANT. THE
REACTOR VESSEL HEADS AS WELL AS
THE LOW PRESSURE TURBINES. BUT
THIS WILL BE AN IMPORTANT
QUESTION. AND I DO BELIEVE THAT
PG AND E, UH WOULD BE WORKING TO
IDENTIFY THOSE ADDITIONAL
ACTIVITIES AND TO PLAN FOR HOW
TO RESUME THE PREVENTIVE
MAINTENANCE AND TO DETERMINE
WHICH CAPITAL IMPROVEMENT
PROJECTS ARE NEEDED. BUT I WOULD
ALSO EMPHASIZED THAT THAT IT'S
EVEN MORE IMPORTANT OR EQUALLY
IMPORTANT TO CONSIDER THE
ONGOING STAFFING FOR THE PLANT.
THIS HAS BEEN A CONCERN FOR THE
COMMITTEE, AND IT'S SOMETHING
THAT WE'VE WATCHED CLOSELY WITH
THE PLANNED CESSATION OF
OPERATIONS TO ASSURE THAT THE
HIGHLY TRAINED STAFF THAT IS
THERE CAN BE RETAINED. AND SO
THERE WILL NEED TO BE SOME
EXPANSION OF THAT STAFFING GOING
FORWARD. AND SO THE PLANS TO
HIRE ADDITIONAL PEOPLE AND BRING
IN AN ADDITIONAL SUPPORT WILL
ALSO BE SOMETHING THAT WILL BE
QUITE IMPORTANT FOR US TO
REVIEW. I HOPE THAT'S HELPFUL IN
ANSWERING THE QUESTION. I
APOLOGIZE THAT I CAN'T GET CAN'T
GIVE ANY DIRECT ANSWERS WITH
RESPECT TO COSTS FOR THESE THESE
NECESSARY ADDITIONAL ACTIVITIES
. NO, NO, THANK YOU. THAT'S VERY
HELPFUL. AND I'M GOING TO MR
JONES THE SAME QUESTION. UM THEN
THEN GOING BACK TO THAT, UH, I
BELIEVE, UM, MR TONY MENTIONED
THE 150 DAYS WHERE THE UNIT TWO
WAS NOT OPERABLE. IN YOUR
OPINION, DO YOU ANTICIPATE IF WE
ARE ABLE TO KEEP THIS OPEN TILL
2030 OR EVEN 2035 THAT WE WOULD
FACE SUCH A LONG UM, YOU KNOW, A
LONG STOPPAGE OF POWER. YES THAT
THAT'S AN EXCELLENT QUESTION AS
WELL THAT THE SPECIFIC THE
SPECIFIC ISSUES THAT THE PLANT
EXPERIENCED INVOLVED THE
REFURBISHMENT OF THE GENERATOR
STAT OR FOR THE UNIT TWO AND THE
IN THAT REFURBISHMENT THAT THE
MODIFICATIONS THAT WERE MADE
DURING THE REPLACEMENT AH
INCLUDED SOME CHANGES TO WATER
MANIFOLDS THAT ARE USED FOR
COOLING THE EQUIPMENT INSIDE THE
GENERATOR, AND THERE WERE ISSUES
ASSOCIATED WITH VIBRATIONS
BECAUSE OF THE CHANGE IN IN IN
ESSENTIALLY THE WEIGHT OF
DIFFERENT PARTS OF THAT OF THAT
STATUS, ER AND THOSE VIBRATIONS
RESULTED IN SMALL LEAKS
OCCURRING, WHICH REQUIRED THAT
THE GENERATORS BE SHUT DOWN. SO
THERE WERE A NUMBER OF OUTAGES
INVOLVED WITH MAKING REPAIRS.
AND FOR THOSE GENERATORS. I
DON'T BELIEVE THAT THERE ARE ANY
SIMILAR MAJOR CAPITAL. REPLACE
EQUIPMENT REPLACEMENTS REQUIRED
IN THE COMING FIVE YEARS. THAT
WOULD WOULD CARRY A SIMILAR TYPE
OF RISK. BUT INDEED, IT IS
ALWAYS AN ISSUE THAT THAT YOU
CAN HAVE OUTAGES AND PLANTS THAT
ARE FORCED. THE RECORD OF THIS
PLANT HAS BEEN QUITE GOOD WITH
RESPECT TO FORCED OUTAGES.
EXCEPT FOR THIS THIS RECENT
EXPERIENCE WITH THIS GENERATOR
REFURBISHMENT. SO SO I THINK
THAT WOULD BE THE ANSWER TO THAT
QUESTION. SO U N ANTICIPATE
BASED ON BASED ON WHAT WE KNOW
TODAY THAT YOU DON'T ANTICIPATE
ANY SORT OF SEVERE OUT INTO THE
NEXT 10 YEARS, SIMILAR TO THE
150 DAYS, MR JONES, UH, DO YOU
HAVE A ROUGH ESTIMATE OF WHAT
THE COST MIGHT BE FOR? WELL, ONE
DO YOU DO YOU SORT OF AGREE WITH
THE STATEMENT, MR PETERSON MADE
AROUND THE PLANS FOR PREVENTIVE
MAINTENANCE. AND THEN DO YOU
HAVE A COST ESTIMATE? SO YES, I
AGREE WITH DR PETERSON'S
CHARACTERIZATION OF THE LAST
EVENTS ARE HISTORICAL CAPACITY
HAS BEEN IN THE HIGH EIGHTIES,
ALMOST 90% THROUGHOUT THE LIFE
OF THE PLANT. IN THE EVOLUTION
HE DESCRIBED SOME OF THOSE
PERIODS. WE INTENDED TO RUN FOR
30 DAYS AND THEN DELIBERATELY
RAMPED DOWN TO DO ADDITIONAL
INSPECTIONS. WHAT LED TO THAT
LOWER CAPACITY FOR UNIT TWO AND
THAT ONE PERIOD OF TIME WITH
RESPECT TO THE CORE ASSESSMENTS
? I'M GOING TO DEFER TO MY
COLLEAGUE TYSON SMITH, WHO HAS
JOINED THE CALL TODAY. AND SO
MISTER SMITH WILL ADDRESS YOU IN
JUST A SECOND. THANK YOU. YES SO
WITH RESPECT TO THE COST
ESTIMATES, UH, FOR THE
PREVENTIVE MAINTENANCE AND THE
WORK IS BEING DONE WHERE IN THE
PROCESS OF DEVELOPING THOSE COST
ESTIMATES FULLY TO BE INCLUDED
AS PART OF AN APPLICATION TO THE
DEPARTMENT OF ENERGY. IF, INDEED
, THE STATE DOES CHANGE ITS
POLICY DIRECTION WITH RESPECT TO
DIABLO CANYON, BUT GENERALLY WE
HAVE HAD A LIST OF WHAT THOSE
PREVENTATIVE PROJECTS ARE THAT
WE DEVELOPED PREVIOUSLY. SO
WE'VE DUSTED THAT OFF AND ARE
WORKING THROUGH THE PROCESS OF
UPDATING THOSE COST ESTIMATES TO
REFLECT CURRENT CONDITIONS. THE
DIFFERENT ESTIMATES. ARE YOU ARE
WE TALKING LIKE, YOU KNOW? JUST
1 TO 10 MILLION. WE'RE TALKING
10 TO 100 MILLION. WE'RE TALKING
TO BUT HUNDREDS OF MILLIONS
WE'RE TALKING BILLIONS WHAT?
HUNDREDS OF MILLIONS MOST LIKELY
. I MEAN, THESE ARE THE COSTS
THAT WERE, UH, ANTICIPATING AND
HOPING WOULD BE PART OF THE
DEAL. WE APPLICATION SO I
BELIEVE THE INTENT IS THAT THESE
COSTS WOULD BE COVERED FROM
FEDERAL FUNDING IF WE ARE IN
FACT AWARDED SUCH FUND AND WE
ARE ABLE TO APPLY FOR THOSE
MONTHS AND ARE SUCCESSFUL IN
RECEIVING THEM AND SEND CENTER
HERE. UM IF THE COST TO GET THE
FACILITIES UP AND RUNNING
EXCEEDS THAT $1.4 BILLION LOAN.
WHERE WOULD YOU ANTICIPATE
GETTING THE ADDITIONAL FUNDS? AS
I UNDERSTAND IT, THERE'S SOME
OFF RAMPS BUILT INTO THE
LEGISLATION SUCH THAT IF THE
COSTS EXCEEDED THAT THERE WOULD
BE, UH, AN ASSESSMENT INVOLVING
VARIOUS STATE AGENCIES,
INCLUDING THE CPC AS TO WHETHER
IT'S COST BENEFICIAL OR
IMPORTANT TO DO SO. AND WHAT THE
SOURCE OF THAT FUNDING MIGHT BE.
GREAT. AND JUST OUT OF
CURIOSITY, UM YO YOU YOU YOU'VE
LISTENED TO. I GUESS MR TONY'S
COMMENTS AND THEN THE, UM. THE
ADDITIONAL THE SIGNIFICANT
INCREASE IN. PROFITS THAT WOULD
BE GIVEN TO PG ANY. IS THERE A
REASON THAT THERE NEEDS TO BE
ADDITIONAL? UM PROFITS HIGHER TO
WHAT IS ALREADY BEEN PROMISED
THROUGH 23 25. UH WELL, FIRST I
WOULD NOTE THAT THE REVENUE
EXCUSE ME. RIGHT IT INCLUDES
SOME PROVISIONS THAT WOULD, YOU
KNOW, LIMIT THE WAYS IN WHICH WE
SPEND THAT ANY PAYMENTS SO THAT
WE WOULD BE INVESTING THOSE TO
THE EXTENT THEY'RE NOT NEEDED
FOR DIABLO CANYON WOULD BE
INVESTING THOSE BACK IN THE
SYSTEM TO ACCELERATE WORK THAT
THE STATE WOULD LIKE TO HAVE
DONE IN CUSTOMERS EXPECT US TO
DO SO. FROM THAT PERSPECTIVE,
THAT'S THAT'S THE INTENT. UM
WITH RESPECTS TO THE
COMPENSATION STRUCTURE. WE
BELIEVE IT'S A BALANCED APPROACH
THAT TAKES INTO ACCOUNT THE
RISKS OF CHANGING COURSE AT THIS
LATE LATE IN THE TIME PERIOD AND
MAKING THE INVESTMENTS THAT ARE
NEEDED. UM AND SO THAT IS, UH,
WE BELIEVE IT'S APPROPRIATE AS
AS DRAFTED. BUT I GUESS I THINK
WE'RE TRYING TO UNDERSTAND WHY
THE COMPANY WOULD NEED A YOU
KNOW, INCREASE IN THREEFOLD AND
REVENUE TO KEEP OPERATING A
FACILITY BEEN OPERATING FOR
QUITE A LONG TIME. SURE. WELL
FIRST OF ALL, THE ONE OF THE BIG
CHANGES IS THERE IS NO NOT THE
TRADITIONAL RETURN ON EQUITY OR
CAPITAL INVESTMENT. THAT IS THE
USUAL SOURCE OF RETURN FOR AN
INVESTOR ON UTILITY. SO THAT IS
NOT PRESENT HERE. WHICH
NECESSITATES A DIFFERENT
APPROACH. AND AS I MENTIONED,
THIS IS A BIG SHIFT IN OUR
FINANCIAL PLANS AND OUR
OPERATIONAL PRIORITIES TO
REQUIRE SOME ADJUSTMENTS THERE.
UM THE WAY I BELIEVE IT'S
STRUCTURED IS A BALANCED
APPROACH THAT PROVIDES IMPORTANT
CUSTOMER PROTECTIONS. THAT IS,
IF THE PLANT THE FIXED FEE IS
LOWER THAN WHAT WE WOULD
TRADITIONALLY EXPECT. AND IF WE
HAVE AN EXTENDED OUTAGE THAT
COULD GO TO ZERO, SO THAT IS AT
RISK AND THE PERFORMANCE. THE
PER MEGAWATT HOUR RELATED FEE IS
ALSO, UH, STRUCTURED SUCH THAT
IF THE PLANT DOESN'T OPERATE AND
OR DOESN'T OPERATE, WELL, AMOUNT
CAN BE REDUCED AND POTENTIALLY
DOWN TO ZERO IF THE PLAN DOESN'T
OPERATE AT ALL DURING EXTENDED
OUTAGE, SO THERE'S SOME
PROTECTIONS BUILT IN FOR
CUSTOMERS. I GUESS LAST OF ALL,
I'D POINT OUT THAT THE EXPECTED
BILL IMPACTS ARE MINIMAL TO
ALMOST ZERO FOR THIS. APPROACH
CONTINUING TO OPERATE DIABLO
CANYON. AH CERTAINLY CHEAPER
THAN THE ALTERNATIVES AND
POTENTIALLY HAS THE OPPORTUNITY
TO BE A REVENUE GENERATOR FOR
CUSTOMERS. UM PG NEED SERVICE
TERRITORY CUSTOMERS COULD UNDER
SOME RANGE OF MARKET CONDITIONS
COULD RECEIVE UP TO A $4 A MONTH
BILL CREDIT, SO I BELIEVE THAT
IT'S A FAIR, BALANCED APPROACH
FOR THAT PROTECTS CUSTOMERS
OFFERS SOME POTENTIAL UPSIDE BUT
ALSO ENSURES THAT THERE'S
SUFFICIENT FUNDING TO ADDRESS
THE CHANGING OPERATIONAL AND
FINANCE INTIAL RISKS THAT COME
FROM MAKING THIS LATE CHANGE IN
THE APPROACH TO THE ABU CANYON.
YEAH NO, TOTALLY UNDERSTAND. I
IMAGINE YOU HAVE COST TO RE RAMP
UP THE OPERATIONS WHERE YOU
DIDN'T HAVE ANY, UM, PLANNED
REVENUE FOR THOSE THOSE YEARS.
LET'S SAY THE FIRST THREE OR
FOUR YEARS IF YOU WERE ABLE TO
THEN PROFIT. UH, THE YOU KNOW,
EVEN IF IT'S IN YOUR BALANCE,
SHE DESERVED RESTRICTION THAT
THE MONEY COULDN'T BE MOVED TO
SHAREHOLDERS. OR WOULD THAT
AUTOMATICALLY GO BACK TO
RATEPAYERS? UH IF YOU'RE
REFERRING TO THE FEES, THERE ARE
RESTRICTIONS, AS I UNDERSTAND IT
AND WHAT WE WOULD BE ALLOWED TO
DO. THERE'S AN ANNUAL REPORT AS
TO THE AMOUNT OF COMPENSATION
THAT WE RECEIVED AND HOW WE
SPEND IT SO THERE WOULD BE AN
ACCOUNTING AND THE ABILITY TO
SEE THAT, UM, AS I MENTIONED
BEFORE, UH, THE INTENT IS TO
KEEP ALL THOSE FUNDS WITHIN THE
COMPANY AND TO PUT THEM TO WORK
FOR THE BENEFIT OF CUSTOMERS
ACROSS THE STATE. WHETHER THAT'S
ADDITIONAL CLEAN ENERGY
INVESTMENT TO ACCELERATE THE
CLEAN ENERGY TRANSITION THAT
WE'RE TRYING TO ACCOMPLISH, AND
THAT DIABLO CANYON TO THE
INSURANCE POLICY FOR IT COULD BE
FOR OTHER IMPORTANT MEASURES
LIKE WILDFIRE RISK REDUCTION OR
TO SUPPORT AND ACCELERATE OUR
UNDER GROUNDING WORK. SO THESE
ARE ALL PROJECTS AND WORK THAT
WOULD BE ADDRESSED THROUGH THE
CPC PROCESSES AND SO THERE WILL
BE ADDITIONAL FUNDING AND
ABILITY TO ACCELERATE THAT WORK
TO THE BENEFIT OF OUR CUSTOMERS
IN THE STATE. I THINK THE
ADMINISTRATION WANTS TO ADD TO
YOUR PLEASE. FLO. ANYBODY COULD
ACT ABSOLUTELY. ALL RIGHT. THANK
YOU. THE ONLY PIECE I'D SAY IS
THERE'S LANGUAGE IN THE
LEGISLATION THAT MAKES IT REALLY
CLEAR THAT COMPENSATION CAN ONLY
GO TO OPERATING THE PLANT OR
WOULD HAVE TO GO TO ACCELERATE
CRITICAL PRIORITIES, SUCH AS
ACCELERATING CUSTOMER
INTERCONNECTIONS, INCREASING
CAPACITY TO ACCELERATE ACTIONS
TO NEEDED TO BRING RENEWABLE
ZERO CARBON ENERGY TO MODERNIZE
THE GRID TO INCREASE RESILIENCY
ARE REDUCED WILDFIRE RISK IT
COULD NOT GO. TWO SHAREHOLDER
PROFITS OR AH OR OR BACK TO
SHAREHOLDERS AND WOULD HAVE TO
BE FOR THESE PUBLIC PURPOSES
THAT WOULD OTHERWISE BE FUNDED
BY RATEPAYERS AND ARE AVAILABLE
FOR COST RECOVERY. PERFECT.
THANK YOU. JUST JUST, YOU KNOW,
SINCE THE ADMINISTRATION'S UP,
UM ONE. I THINK ONE PARTICULAR
ISSUE WAS, UM, OBVIOUSLY,
THERE'S BEEN A LOT OF DISCUSSION
OF RELIABILITY FROM A LOT OF, UM
AH, A LOT. A LOT OF THE
DIFFERENT WITNESSES. UM I
BELIEVE, THE WITNESS FROM NRDC
TESTIFIED YESTERDAY. THE SENATE
HEARING THAT THERE HAS NOT BEEN
ANY, UM, REPORT THROUGH ANY OF
THE DIFFERENT AGENCIES
THROUGHOUT THE STATE THAT HAS
IDENTIFIED UH YOU KNOW, I TALKED
ABOUT RELIABILITY AS THE ISSUE
AND DIABLO AS THE SOLUTION IS
THAT I DON'T KNOW IF THAT'S TRUE
OR NOT. I JUST WANT TO JUST ASK
THE ADMINISTRATION. THE ENERGY
AGENCIES HAVE CONDUCTED A
THOROUGH REVIEW AND EVALUATION
OF WHERE WE ARE CURRENTLY AND
PREPARED TO VARIETY OF UPDATES
AND FORECAST THAT. SHOW UM,
WHERE WE ARE IN RELATIONSHIP TO
THE NECESSARY LEVEL OF
PROCUREMENT THAT HAVE QUANTIFIED
THE AMOUNT OF PROCURED RESOURCES
THAT ARE AT RISK AND FORECAST A
NEED FOR ADDITIONAL POWER AND
THE NEED FOR AN EXTENSION AS AN
OPTION TO BE ABLE TO MAINTAIN
RELIABILITY. MY COLLEAGUE KAREN
DOUGLAS SHARES SOME OF THE
INFORMATION THAT AH, THE ENERGY
AGENCIES HAVE PROVIDED ANOTHER
CONTEXT. BUT THERE THE FORECAST
OF WHERE WE ARE IS THAT WE HAVE
A GAP RELATIVE TO AND NECESSARY
LEVEL OF PROCUREMENT. AND EVEN
WITH CURRENT PROCUREMENT, UH
THAT IN AND WITH THE 14,500
MEGAWATTS THAT HAVE BEEN ORDERED
IN ARE SCHEDULED TO COME ONLINE.
WE ARE BOTH UNDER PROCURED. AND
WE HAVE A GAP RELATIVE TO WHAT
HAS BEEN ORDERED AND WHAT FOLKS
ARE FORECASTING THAT WILL
MATERIALIZE THAT IS CREATING A
NEED FOR THIS EXTENSION TO SHORE
UP RELIABILITY AND MAINTAIN OUR
MAINTAIN RELIABILITY AS WE
CONTINUE TO ACCELERATE THE
TRANSITION. BUT BUT I GUESS JUST
GOING BACK TO, I GUESS THAT THE
POINT MADE YESTERDAY. UM UNLIKE
, SAY, LIKE OUR LEGISLATIVE
ANALYST, FOR EXAMPLE, I DON'T
THINK THERE'S REPORT THAT. I CAN
REVIEW OR I CAN SEE. I JUST I
THINK I HAVE A NUMBER OF POWER
POINT SLIDES. UM BUT THERE'S NO
PARTICULAR REPORTING THE ENERGY
CMMISSION OR THE CALLOUS, SO OR
ANY AGENCY. UNFORTUNATELY UH
WHICH, UM WHICH I WHICH I THINK
LEADS LEADS ME TO MY NEXT
QUESTION. NO. ONE OF THE
SCENARIOS THAT I HAD ASKED FOR
MORE INFORMATION, AND I DON'T
KNOW IF IT'S INCORPORATED. UM
YOU KNOW, SENIOR ENERGY ADVISER
DOUGLASS'S UH, PLAN WAS REALLY
AROUND THE MAXIMUM AMOUNT OF
CAPACITY TO ADD TO THE GRID. AND
ENSURING THAT THAT WAS LOOKED AT
IS THAT WHAT THE FIRST SLIDE IS
REFERRING TO WITH THE GRAY
SECTION? BUT I BELIEVE THE GREAT
I BELIEVE THAT THE GRAY SECTION
IN THE SLIDE IS, UM IS FORECAST
IS INCLUDING, UM WHAT HAS BEEN
ORDERED AND THE NEW RESOURCES
THAT ARE THAT ARE THAT ARE
SCHEDULED TO COME ONLINE. UM AND
, UH, PORTION OF THAT, UH,
ORDER. THE ORDER RESOURCES ARE
AT RISK OF NOT BEING AVAILABLE,
JUST BY POINT OF REFERENCE. FOR
EXAMPLE, THE PROJECTIONS HAVE,
YOU KNOW WE'VE GONE FROM A VERY
LOW AMOUNT OF STORAGE CAPACITY
TO 4000 MEGAWATTS IN A NUMBER OF
YEARS. THE FORECAST IN THE
INFORMATION BEFORE YOU ASSUMES
THAT WE WILL MORE THAN DOUBLE
THE AVAILABLE STORAGE AMOUNT BY
2025 ON ARE GOING FROM 4000 TO 5
TO 9000, EVEN IN THE CONTEXT OF
SOME OF THE OF THE ANTICIPATED
DELAYS, SO ALL OF THE FORECAST
REFLECT CONTINUED RAPID GROWTH
IN CLEAN RESOURCES BEING BROUGHT
ONLINE AND INTERCONNECTED. NO,
NO, MRS MILLER. THANK YOU. YEAH,
I JUST HAVE TO HIT THE
MICROPHONE BUTTON. THE CASE, SO
REPORTS THAT BETWEEN NOVEMBER OF
2020. AND APRI OF 2022, WHICH
IS THE PERIOD OF THE PANDEMIC. A
TOTAL OF 2360 MEGAWATTS OF NEW
GRID CONNECTED STORAGE PROJECTS
HAVE BEEN ADDED AND OR
OPERATIONAL ON THE GRID. SO WE
NOW HAVE A TOTAL AS OF AUGUST
1ST OF 3344 MEGAWATTS OF STORAGE
AVAILABLE IN THE INTERCONNECTION
QUÊ. THERE ARE A MAGNITUDE
THERE'S AN ORDER OF MAGNITUDE
GREATER THAN THAT, PARTICULARLY
IN THE MOST RECENT
INTERCONNECTIONS, SO THERE IS NO
SHORTAGE OF OPPORUNITIES TO GET
THERE. ALL OF THE LOAD SERVING
ENTITIES ARE CURRENTLY THEY'VE
PUT OUT TO BID PROCUREMENT, YOU
COMPETITIVE SOLICITATIONS. MANY
ARE IN ACTIVE NEGOTIATIONS. WHAT
IS NOT REALLY TRANSPARENT AT
THIS TIME, AND I'M HOPING THAT
THE ADMINISTRATION HAS THAT IS
THE MILESTONES ON EACH OF THE
MANY PROJECTS BECAUSE A LOT OF
THIS DECISION HINGES ON WHETHER
OR NOT BY 20. THE SUMMER OF 2025
, THE 11.5 GIGAWATTS, PERHAPS IS
A LITTLE LESS THAN THAT, BECAUSE
IT MAY TAKE LONGER FOR THE
GEOTHERMAL AND LONG DURATION
STORIES CAN COME ONLINE AND BE
AVAILABLE WHEN DIABLO IS NOT
AVAILABLE IN 2025. WE APPRECIATE
YOU BRING THAT UP BECAUSE MR
SINGH BROUGHT UP ALSO THIS ISSUE
AROUND INTERCONNECTION. MY
UNDERSTANDING IS THERE'S 40,000
TO 60,000 MEGAWATTS, WAITING
THIS SECOND TO BE INTERCONNECTED
. UH WHAT? WHAT'S STOPPING THAT
? NOT ALL OF IT WILL BE
INTERCONNECTED. THAT IS VASTLY
IN. SO WHAT'S STOPPING THAT IS
THE STUDIES THAT NEED TO BE DONE
ON DELIVER ABILITY. NETWORK
UPGRADES. SO WHEN YOU APPLY FOR
AN INTERCONNECTION THE CASE. SO
IN THE IN THE IN THE
PARTICIPATING TRANSMISSION OWNER
DOES DETAILED STUDIES POWER FLOW
STUDIES ON THE IMPACTS OF THAT.
THAT'S TAKEN LONGER THAN SHOULD
BE. IT COULD BE CORRECTED BY
SIMPLY MORE STAFFING. AND THEN
THERE IS A NEED, IN SOME CASES
TO ACTUALLY DO UPGRADES TO THE
TRANSMISSION SYSTEM, PERHAPS RE
CONDUCTING, MAYBE A AS
ADDITIONAL TRANSFORM DIFFERENT
PIECES OF EQUIPMENT NEED TO BE
INSTALLED, AND THAT'S WHERE
WE'RE SEEING DELAYS IN THE
PROCESS THAT AREN'T SUFFICIENT
TO GET THESE RESOURCES SO IT
REALLY I GUESS WHAT DO WE NEED
TO DO TO SPEED THAT UP? BECAUSE
OBVIOUSLY, THAT TO ME SEEMS LIKE
LOW HANGING FRUIT WHERE WE COULD
JUST BE. LET'S LET'S GET IT. I
MEAN, WELL, I THINK ONE THING
WOULD BE TO AND SO THIS IS SORT
OF THE INTANGIBLE ABOUT THIS
DECISION IS YOU KNOW, THERE'S SO
MUCH OF ENERGY IN THE C SUITE OF
A ORGANIZATION AND WHAT ARE THEY
GOING TO FOCUS ON DOING AND
WHERE ARE THEY GOING TO GET THE
ADDITIONAL STAFFING SO IT REALLY
IS IN PG AND E S EXECUTIVES
SOUTHERN CALIFORNIA EDISON, SAN
DIEGO GAS AND ELECTRIC AND THE
CASE, SO TO REALLY STAFF UP
ADEQUATELY AND TO GO THROUGH
THIS PROCESS. THERE'S ALSO THIS
SORT OF A LITTLE BIT DIFFERENT
ISSUE. THERE'S KIND OF DOUBLE
PERMITTING ON UPGRADES TO
TRANSMISSION ONCE AT THE KAISER
, WHERE THEY MAKE A
DETERMINATION OF NEED THROUGH
THE TRANSMISSION PLANNING
PROCESS AND A SECOND TIME AT THE
CALIFORNIA B THROUGH ITS CP CN
PROCESSES CERTIFICATE OF NEED
AND CONVENIENCE. SO WE NEED TO
STREAMLINE THAT. I THINK WE ALL
WE NEED TO FIND THAT THESE
PROJECTS ARE NEEDED ONLY ONCE
AND THEN MOVE THEM THROUGH THE
PERMITTING PROCESS MORE QUICKLY
. I THINK MR STERN WANTED TO
ANSWER THAT QUESTION, TOO. THANK
YOU. THANK YOU, MR TANG. UM SO I
JUST WANTED TO ADD. I DON'T
THINK MR SMELL OFF ACTUALLY
IDENTIFIED SOME OF THE PROBLEMS
. UM, BUT I WANT TO MAKE IT
CLEAR. THIS IS OUR WORK. UM WERE
AS FRUSTRATED AS ANYBODY ABOUT
THE LACK OF THE SPACE IN WHICH
INTERCONNECTION IS MADE AT THE
SAME TIME. I THINK THE REAL
PROBLEM FOR IS THE WAY WE SEE IT
. AND WHEN I'M MEETING WE, I
MEAN FOR 45. Q IS THAT WE'VE
ALREADY MISSED THE BOAT. THERE
ISN'T A WAY TO ACCELERATE THIS
IN A MEANINGFUL WAY TO BUILD
THESE PROJECTS BECAUSE ONCE THE
DECISION IS MADE TO EITHER BUILD
NEW TRANSMISSION RESOURCES
CONDUCTOR EXPAND CAPACITY ON
EXISTING IT'S STILL YEARS AWAY,
AND THEN YOU DO RUN INTO
MATERIALS AND EQUIPMENT BECAUSE
THAT'S ALSO PART OF THE
OPPORTUNITY HERE IS TO IMPLEMENT
THE NEW TECHNOLOGY THAT'S COMING
ONLINE SO THAT WHEN WE DO
INCREASED CAPACITY, AND WHEN WE
DO MAKE THESE DECISIONS, WE CAN
EXPAND THE TRANSMISSION SYSTEM
TO ACCEPT MUCH, MUCH MORE
RENEWABLES AND CLEAN ENERGY IN
THE FUTURE. THANKS I WANT TO ASK
MR. SMELL IT AND THEN GO BACK TO
ADMINISTRATION WITH THE SAME
QUESTION. SO WITH WITH THE
CHARGE THE ADMINISTRATION I
THINK, PROVIDED YOU'RE LOOKING
AT UM YOU KNOW. FIVE 56 DAYS OR
SEVEN DAYS IN SEPTEMBER THAT ARE
GONNA BE MAJOR ISSUES. UM IS
THIS REALLY A BASE LOAD ISSUE,
OR THIS IS JUST A PEAK PEAK LOAD
ISSUE, MEANING, OBVIOUSLY, IF
IT'S A BASE LOAD ISSUE, THAT'S
WHY YOU WOULD NEED SOMETHING
LIKE A DIABLO. BUT IF IT'S A
PEAK LOAD ISSUE, COULD WE USE
SOMETHING THAT'S MORE FLEXIBLE
THAT YOU CAN RAMP UP RAMP DOWN
FOR THOSE PARTICULAR DAYS?
RELIABILITY IS ALWAYS A PEAK
ISSUE, AND IT IT HAS SOME
VARYING COMPONENTS TO IT BOTH,
YOU KNOW, CAPACITY AND ENERGY
FOR CHARGING THE BATTERIES WILL
BE MORE OF AN ISSUE IN THE
FUTURE. BUT TYPICALLY WE ARE
MOST CONCERNED ABOUT THE MONTHS
OF AUGUST AND SEPTEMBER, AND
WE'RE CONCERNED ABOUT THE HOURS
NOW, AS THE SUN IS SETTING THAT
WE HAVE SUFFICIENT CAPACITY,
PARTICULARLY STORAGE CAPACITY.
THEY CAN RAMP FAST THAT CAN
MODULATE VERY QUICKLY TO ADDRESS
THE NEEDS BECAUSE WE HAVE TO
BALANCE THE SYSTEM 2ND 2ND BY
SECOND NUCLEAR PLANT DOESN'T DO
THAT OTHER RESOURCES DO AND
BATTERIES DO THAT VERY, VERY
WELL. BECAUSE THEY CAN THEY CAN
QUICKLY ADJUST TO WHAT THE LOAD
REQUIREMENTS ARE. THANK YOU. I
DON'T KNOW IF THE ADMINISTRATION
ASSEMBLE MINTING STORY HYBRID
FORMAT MOORLACH WORD IF I COULD
JUST ADD IN ON THE
INTERCONNECTION QUESTION THAT
YOU ASKED PREVIOUSLY. SO I THINK
ED ACTUALLY TOUCHED ON SOME
SPECIFICS THAT ARE CAUSING
DELAYS. BUT I WILL SAY FROM THE
GENERATOR SIDE OF THINGS WE HAVE
BEEN EXPERIENCING PERSISTENT
INTERCONNECTION DELAYS FROM
TRANSMISSION OPERATORS AND NOT
HAVING THE TRANSPARENCY AS TO
WHY AND WHEN THINGS ARE GOING TO
COME ONLINE, ONE GOOD
ADVANCEMENT THAT OCCURRED
AMONGST THE AGENCIES AND WITH
THE TED TASK FORCE THAT THE
GOVERNOR'S OFFICE MENTIONED
TODAY. AND WITH THE LEADERSHIP
OF PEOPLE LIKE CPUC PRESIDENT
REYNOLDS IS FRANKLY A MAN A
MEASURE AND MANAGE APPROACH OF
TELL US WHAT'S GOING ON WITH
EVERY INTERCONNECTION. TELL US
WHERE YOU'RE AT CONSISTENTLY.
THAT IS A STEP IN THE RIGHT
DIRECTION THAT HADN'T BEEN
HAPPENING KIND OF SELF
REGULATORY LEE SHALL I SAY BY
THE TRANSMISSION OPERATORS
BEFORE, BUT THINGS ARE NOT QUITE
TRANSPARENT AS TO WHY THE DELAYS
ARE HAPPENING. WE GET COVID AND
SUPPLY CHAIN HAND WAVING, BUT
THAT'S OBVIOUSLY NOT ENOUGH.
WHAT THIS DOES IT HOLDS BACK
SOLAR STORAGE RESOURCES THAT CAN
PROVIDE ESSENTIAL RELIABILITY
FUNCTIONS AND HOLDS BACK
GIGAWATTS. UH SCALE WISE OF
THOSE RESOURCES THAT COULD BE
ONLINE TODAY. OR TOMORROW THAT
ARE JUST WAY BEHIND BECAUSE OF
THAT INTERCONNECTION PROBLEM, SO
I DO REALLY WANT TO SPOTLIGHT
THAT ISSUE, AND IT CANNOT BE AN
ISSUE OF IT'S THE WAY IT IS.
IT'S TOUGH TO SOLVE. THAT'S NOT
SUFFICIENT, AND IT'S WHERE WE'RE
SQUANDERING RESOURCES AND
PROCUREMENT THAT ARE IN PLACE
THAT CAN COME ONLINE AND PROVIDE
THE R A. WE ALL NEED NO. THANK
YOU. AND I DON'T KNOW IF THE
MINISTRATIONS WANTED TO JUST
TOUCH ON THE AH, YOU KNOW, IF
THIS IS THE PROBLEM IS OVER A
PARTICULAR WEEK. UM WHY NOT GO
FOR A RESOURCE THAT WE CAN JUST
RAMPED UP AND RAMPED UP DOWN? UH
THANK YOU, MR TING FOR THE
QUESTION. I THINK THE WAY IN
WHICH WE LOOK AT IT IS WE NEED
AN ALL OF THE ABOVE. SO WE NEED
MORE BATTERIES. WE NEED MORE
DEMAND RESPONSE. WE NEED MORE
STORAGE. WE NEED FASTER TIME AND
WE NEEDED THE OUTLOOK EXTENSION
TO BE ABLE TO PROTECT
RELIABILITY AND WE NEED ALL OF
THESE MEASURES. AND HAVING THIS
IS THE BASE LOAD RESOURCE NOT
ONLY SUPPORTS OUR RELIABILITY,
BUT IT ALSO REDUCES THE EXTENT
TO WHICH WE NEED TO RUN. GAS
RESOURCES AS AS OFTEN AS WE ARE
RUNNING THEM, SO IT HAS OTHER
BENEFITS FROM A GREEN
RELIABILITY STANDPOINT, AND A
GREENHOUSE GAS EMISSION
REDUCTION STANDPOINT, SO IT'S UH
AND WE SEE THIS AS A FOR THE
SHORTEST POSSIBLE. UM AND, UH
UNTIL WE HAVE OTHER, UH,
RESOURCES ONLINE INTERCONNECTED
AND THAT WE CAN COUNT ON TO
ENSURE THAT WE CAN ACHIEVE, UH
AND PROTECT RELIABILITY IN DO SO
WITH AS MUCH CLEAN ENERGY AS
POSSIBLE AS WE GET TO 100% CLEAN
ENERGY GOALS. GREAT THANK YOU.
AND JUST LAST QUESTION FOR THE
SUPERVISOR UNDER THE SUPERVISOR
STILL ON OR AND IF SHE HAD TO
LEAVE HERE. UM SO IT'S A WERE
OBVIOUSLY VERY EXCITED ABOUT THE
POTENTIAL OFF WIND. UM THE WIND
PROJECT OFF THE COAST. UH HOW
WOULD KEEPING THE APPLE OPEN
ANOTHER FIVE OR 10 YEARS? IMPACT
THAT PROJECT. IT'S A GOOD
QUESTION, ASSEMBLYMAN. I THINK
THAT WE HAVE ALREADY DISCUSSED
SOME OF THE COMPLEMENTARY
ASPECTS OF WHAT COULD HAPPEN
HERE. UM WE KNOW THAT THE
OFFSHORE WIND IS ONGOING. WE ALL
HAVE OUR FIRST AUCTION THIS FALL
THROUGH THE FEDERAL GOVERNMENT
THROUGH BOOM. AND SO WHILE WHILE
DIABLO HAS TURNING, WE'RE GOING
TO BE REALLY PREPARING OUR COAST
AND OUR AREA FOR THE ONSLAUGHT
OF NEW COMPANIES AND THE
OPPORTUNITIES THAT ARE COMING
FORTH. I HAD MENTIONED THE
IMPORT INFRASTRUCTURE BEING A
CRITICAL PIECE, AND SO FOR US,
WE ACTUALLY LOOK AT THIS AS A
GIVES US A LITTLE MORE TIME TO
PREPARE BECAUSE WE KNOW THAT THE
OFFSHORE WIND INDUSTRY AS
ANXIOUS AS THEY ARE TO GET OUT
THERE. UM THIS IS STILL YET
UNPROVEN, AND IT HASN'T REALLY
BEEN INSTALLED ANYWHERE YET AT
THE DEPTHS OF OUR OCEAN WHERE
IT'S MINING, SO I THINK THAT
THIS IS A GREAT OPPORTUNITY. I
ALSO MENTIONED IN MY NOTES THAT
LOOKING AT THE WORKFORCE ISSUES,
WHICH I THINK FOR ALL OF US
THESE DAYS IS CRITICALLY
IMPORTANT IS THAT, UM, THE
ABILITY TO HAVE A WORKFORCE THAT
COULD TRANSITION FROM NUCLEAR
EXCELLENCE TO OFFSHORE WIND IS
GOING TO BE VERY IMPORTANT AND
ONE OF THE THINGS THAT WAS
HAPPENING PRIOR IS THAT WE WERE
LOSING PEOPLE. UM BECAUSE THERE
WASN'T THAT KIND OF PROMISE FOR
A CONTINUED CAREER FOR THE
YOUNGER FOLKS IN THE ENERGY
BUSINESS, SO NOW WE SEE THIS AS
A GREAT TRANSITION TIME, SO I
THINK THAT TOGETHER WITH OUR PG
AND E RELATIONSHIP AT THE COUNTY
AND THROUGHOUT THE THROUGHOUT
THE REGION THAT WE CAN WORK
TOGETHER ON BOTH THE DEVELOPMENT
OF THE OFFSHORE WIND INDUSTRY
AND THEN THE FUTURE
INTERCONNECTION AND ALL THE
THINGS THAT HAVE BEEN DISCUSSED
TODAY. I THINK SO. I WILL ADD
THAT THE CAISO 20 YEAR. OUTLOOK
TRANSMISSION OUTLOOK IDENTIFIED
THE NEED FOR A NEW SWITCHYARD AT
ADJACENT TO DIABLO CANYON 500 KV
SWITCHYARD, WHICH WOULD BE THE
LANDING FOR THE GENTILES THAT
COME FROM THE OFFSHORE WHEN
RESOURCES AND THEN IN ADDITION
TO THAT THERE REALLY COULD BE A
VERY VALUABLE SUB SEA CABLE THAT
WOULD GO FROM DIABLO CANYON.
INTO THE L A BASIN. IT MIGHT GO
INTO SCATTERGOOD OR REDONDO
BEACH. BUT REALLY, WE NEED TO BE
ABLE TO LOOP THE SYSTEM SO THAT
WE CAN REDUCE FOSSIL GENERATION
IN THE L. A BASIN WERE NOT ONLY
CAUSES GREENHOUSE GAS EMISSIONS
, BUT ASTHMA AND YOU KNOW LOCAL
AIR AIR PROBLEMS. SO THE
TRANSMISSION SOLUTIONS REALLY
NEED TO BE FRONT AND CENTER, AND
I'M JUST VERY WORRIED THAT THERE
ARE OPPORTUNITY COST. THERE'S
ALWAYS OPPORTUNITY COSTS AND IN
DECISION MAKING, AND THIS
DECISION ABOUT DIABLO CANYON IS
PERHAPS DEFLECTING ATTENTION
FROM THE LONGER TERM SOLUTIONS.
THANK YOU ON ONE. SORRY, ONE
LAST SHORT QUESTION. MY
UNDERSTANDING IS THERE'S 12000
ACRES OF OPEN SPACE NEXT TO
DIABLO IN MY WHAT WE HAD HEARD
WAS THERE OBVIOUSLY IS A
MITIGATION FUND THAT GOES TO
COASTAL PROTECTION. BUT MY
UNDERSTANDING IS THE HOPE OF THE
COMMUNITY WAS THAT IF THE OTHER
WERE TO STAY OPEN LONGER,
PERHAPS ANY MITIGATION MIGHT GO
DIRECTLY TO THAT 12,000 ACRES. I
JUST WANTED TO GET A
CONFIRMATION OR NOT FROM THE
SUPERVISOR. WELL UM I WILL SAY
THAT CURRENTLY THERE'S A GREAT
AMOUNT OF EFFORTS TO DETERMINE
WHERE IT HAPPENS TO THE 12,000
ACRES. THAT'S VERY IMPORTANT TO
THE COMMUNITY. AND I BELIEVE
THAT THE UTILITY HAS EXPRESSED
INTEREST IN, UM STARTING TO HAND
OVER SOME OF THAT ACREAGE TO THE
COMMUNITY. WHO THAT INTO
ENTITLED TO THAT. I DON'T KNOW
EXACTLY, BUT I DON'T KNOW.
PERHAPS MR JONES WOULD LIKE TO
SPEAK TO THAT. BUT YES, THAT IS
VERY IMPORTANT TO OUR COMMUNITY,
AND I APPRECIATE THE QUESTION.
TOM JONES. WITH PDF, I MAY
ASSEMBLYMEMBER'S THE LANDS THE
12,000 ACRES. THERE'S BASICALLY
655 TO 6000 ACRES NORTH OF THE
PLANT AND THEN THE REMAINING
BALANCE BELOW THE PLANTS THAT'S
ON ABOUT 550 ACRES, CONTINUED
OPERATIONS DO NOT PRECLUDE
CONSERVATION CELLS, AND THE
COMPANY HAS SUPPORTED
CONSERVATION. THE CONCEPT OF
CONSERVATION SALES. SINCE 1999
SO PARTICULARLY THE PROPERTIES
TO THE NORTH THAT ARE ADJACENT
TO MONTANA DE ORO STATE PARK.
ARE THE FIRST PARCELS THAT WE
COULD MOVE AND WE COULD MOVE
THOSE EVEN DURING CURRENT
OPERATIONS. TODAY THERE ARE SOME
OTHER GOVERNING REGULATIONS FROM
THE PUBLIC UTILITIES COMMISSION
RIGHT NOW, WITH REGARD TO TRIBAL
FIRST RIGHT OF REFUSAL, AND I
BELIEVE THAT PROCESS IS
REFERENCED IN THE LEGISLATION,
BUT I WOULD DEFER TO THE
ADMINISTRATIVE REPRESENT
REPRESENTATIVE FOR FURTHER
DISCUSSION ABOUT THAT LANGUAGE.
THANK THANK YOU VERY MUCH.
APPRECIATE THE CHAIRS,
INDULGENCE. MOVE ON WITH
QUESTIONS, DR. WOODARD QUESTION
WE'RE GOING TO, UH SOME MEMBER
OF BOERNER HORVATH AND THEN BACK
TO DOCTOR QUICK. GREAT THANK YOU
VERY MUCH. AND, UM, WE HAVEN'T
MET MR ISMAEL NAFTA CONSTITUENT
. YOU GET THE AWARD FOR THE
LONGEST DRIVE HERE APPRECIATE.
APPRECIATE YOU BEING HERE IN
PERSON. THANK YOU SO MUCH FOR
THAT. UM YOU BRING UP SOME
REALLY INTERESTING POINTS AND
OBVIOUSLY GOING BACK TO
TRANSMISSION AND INTERCONNECTION
AND THE CHALLENGES THAT WE'RE
SEEING WITH OUR ABILITY TO BE
ABLE TO HARNESS AND MOVE OUR
CLEAN ENERGY THROUGHOUT
THROUGHOUT THE STATE. UM, THAT
IS IN YOUR OPINION, THE PRIMARY
IMPEDIMENT TO US. GETTING YOU
KNOW, GETTING THESE PROJECTS
ONLINE FASTER. PLEASE YES, I
AGREE. THAT TRANSMISSION IS THE
PRIMARY IMPEDIMENT TO REALLY
REACHING THE VERY AGGRESSIVE
GREENHOUSE GAS REDUCTION GOALS
TO GETTING FIRST TO 30 MILLION
METRIC TONS AND THEN TO GETTING
DOWN TO YOU KNOW ZERO BY 2040 OR
2020 45. SO THAT'S THAT'S WHAT
THE BIGGEST IMPEDIMENT WE ALSO
NEED. TO HAVE THE CONTINUED
LEADERSHIP AT THE PUC TO DO MORE
PROCUREMENT SO THAT WE HAVE A
PLAN AND A PROCUREMENT POLICY
THAT GETS US BEYOND 2026. AS I
SAID THE MIDTERM PROCUREMENT WAS
AGGRESSIVE. IT WAS IT WILL
PROVIDE RELIABILITY IF
IMPLEMENTED, BUT IT DOESN'T
REDUCE GREENHOUSE GASSES
SUFFICIENTLY TO MEET OUR LONGER
TERM GOALS. WELL, I WOULD GUESS
AND, YOU KNOW, LOOK,
TRANSMISSION INTERCONNECTION.
ARE NOT THE SHINY, SEXY OBJECTS
OUT THERE. THEY'RE KIND OF
FOUNDATIONAL TO OUR ABILITY TO
PROVIDE POWER TO KEEP THE LIGHTS
ON. KEEP AIR CONDITIONING ON, UM
AND IT'S AND WE'VE BEEN HEARING
ABOUT TRANSMISSION CHALLENGES
FOR YEARS FOR YEARS. SO I GUESS
, UM MY QUESTION WOULD BE IS THE
TASK FORCE REALLY LOOKING AT
THIS BECAUSE I HAVE TO BELIEVE
THAT IT'S PART OF THE REASON
WE'RE SEEING SOME OF THE DELAYS
IN GETTING THESE PROJECTS UP AND
RUNNING. AND IT FEELS LIKE IT
HAS TO BE PART OF THE REASON FOR
SOME OF THE MARKET UNCERTAINTY
AS WELL, NOT. I UNDERSTAND
THERE'S FEDERAL ISSUES THERE,
BUT BUT IT ISN'T SEXY. IT ISN'T
HEADLINE STUFF. BUT IT'S REALLY
IMPORTANT, OBVIOUSLY. SO WHAT
ARE WE GOING TO DO TO EXPEDITE?
THE CRITICAL NEED FOR
INTERCONNECTION AND TRANSMISSION
. AND I SAY THAT BECAUSE THE
OTHER PART OF THIS IS LIKE, LOOK
, I REPRESENT HUMBOLDT COUNTY. A
HUGE RESOURCE FOR OFFSHORE WIND
OUT THERE. WE KNOW THAT ONE OF
THE BIG IMPEDIMENTS TO GETTING
THAT IS TRANSMISSION. WE SAW
THAT WE SAW POWER GO DOWN DURING
PS PS EVENTS BECAUSE HUMBOLDT
COUNTY IS AN ISIL IS ISOLATED IN
IN SOME WAYS AND HAS ARCHAIC
TRANSMISSION LINES THERE AS WELL
. SO HUGE RESOURCE OUT THERE
THAT WE COULD. THAT'S GOING TO
TAKE A LONG TIME TO GET UP AND
RUNNING. BUT IF WE DON'T HAVE
THE TRANSMISSION AND
INTERCONNECTION AVAILABILITY
THERE WE'RE GOING TO LEAVE THAT
ON THE TABLE FOR YEARS AND YEARS
AND YEARS. POTENTIALLY SO HELP
ME UNDERSTAND HOW WE'RE GOING TO
ADDRESS THE INTERCONNECTION
TRANSMISSION PIECE OF THIS BUT
NOT SEXY PIECE. IT'S GOTTA GOTTA
HAPPEN FOR US TO REACH OUR
GOALS. THANK YOU FOR THE
QUESTION. IT IS A CRITICAL
ISSUE. IT IS AN ISSUE THAT THE
TASK FORCE LOOK AT LOOKS AT IN
THE CONTEXT OF INDIVIDUAL
PROJECTS. UH YOU HAVE SOME
BUDGET PROPOSALS BEFORE YOU THAT
HELP LOOK AT FUNDING FOR THE
INFRASTRUCTURE BANK TO LOOK AT
ALTERNATIVE WAYS OF BEING ABLE
TO DO FINANCING FOR SOME OF THE
TRANSMISSION WORK, AND THAT IS
PART OF THE PART OF THE
CONVERSATION HERE IN TERMS OF
HOW TO FINANCE THESE INVESTMENTS
IN A MORE EFFECTIVE IN A MORE
COST EFFECTIVE MANNER IN THE
NEAR TERM, ADDING STORAGE TO
EXISTING STOLLER IS A HELPFUL
WAY TO BE ABLE TO GET MORE
THINGS ONLINE BECAUSE IT IS
INTERCONNECTED. BUT AS WE LOOK
AT THE OTHER ELEMENTS, I THINK
IN THE BUDGET YOU HAVE IMPORTANT
INVESTMENTS IN THE CONTEXT OF
WHAT NEEDS TO HAPPEN ON THE
TRANSMISSION SIDE AND THE
INTERCONNECTION AND DEPORT
INVESTMENTS FOR OFFSHORE WIND.
THERE'S SOME DOLLARS AROUND HOW
TO DEAL WITH THIS MORE COST
EFFECTIVELY AND LOOKING AT
ALTERNATIVES FOR HOW TO FINANCE
THIS WORK. IT'S A, UM IT'S A
AREA OF FOCUS FOR THE TED TASK
FORCE AND FOR THE AGENCIES AND
I'D SAY IN THE ASSEMBLY OPTIONS
THAT WERE DEVELOPED. THERE ARE
SOME IDEAS WORTH DISCUSSING
AROUND THE ROLE OF THE C P U. C
AND THE ROLE OF THE KALLIAS SO
AND HOW TO STREAMLINE EFFORTS
THERE. UM IT IS IMPORTANT TO
ALSO RECOGNIZE THAT SOME OF THE,
UH SOME OF THE TIME PERIOD
INVOLVED IS IN TWO AREAS THAT
ARE IMPORTANT AND WE NEED TO
WORK AND FIGURE OUT HOW WE WORK
THROUGH. ONE IS ENSURE THAT YOU
KNOW, CALLIE IS SO IS LOOKING AT
WHAT DO WE NEED FROM? YOU KNOW,
FROM OVER LIFE FROM AN
INTERCONNECTION STANDPOINT, THE
PUC IS LOOKING ALSO AT ISSUES OF
COSTS AND HOW TO MAKE THE
INVESTMENTS IN A WAY THAT IS
ASKED, AFFORDABLE TO RATEPAYERS
AS POSSIBLE. SECOND ISSUE IS
THAT SOME OF THE TIMING IS
ASSOCIATED WITH THE REQUISITE
PROCESS, YOU KNOW, PROCESS AND
NEED TO MAKE SURE THAT WE ARE
EXAMINING ENVIRONMENTAL IMPACTS
AND INFORMATIZATION, AND SO
THERE ARE VARIETY OF DIFFERENT
COMPONENTS. THEY ARE AN AREA OF
FOCUS FOR THE TASK FORCE. THEY
ARE AN AREA OF FOCUS FOR THE
AGENCIES. THERE ARE SOME
INVESTMENTS BEFORE YOU THAT WE
THINK WOULD MAKE A DIFFERENCE,
AND WE NEED TO DO MORE WORK IN
THIS SPACE. I'VE GOT A COUPLE.
IT'S OKAY. I'LL BE BRIEF AS MUCH
AS I CAN HERE. SO, UM THE I
GUESS. THE ONE OF THE OTHER
QUESTIONS IS WHAT I HAVEN'T
HEARD. ANYBODY REALLY TALKING
ABOUT IS WHAT IS THE IMPACT
POTENTIALLY TO RATEPAYERS, NOT
JUST PGD RATEPAYERS, POTENTIALLY
BUT OTHER RATEPAYERS OF THIS
PROPOSAL. UM, WE KEEPING DIABLO
CANYON OPEN? UM THE ESTIMATE FOR
WHAT THIS PROPOSAL WILL BE, UH,
IS ON A STATEWIDE AVERAGE BASIS
ABOUT AH, $75 PER MEGAWATT HOUR
. UM FOR, UH, THE IN TERMS OF
THE WAY IN WHICH IT IS PROPOSED
TO FUND THOSE COSTS. UM, THE, UH
YOU KNOW CUSTOMERS IN SAN DIEGO
AND CUSTOMERS IN THE EDISON
TERRITORY WOULD BE LOOKING AT A
CONTRIBUTION OF $60. AND SO A
GREATER PORTION OF THAT AMOUNT
WOULD BE BORN BY PG AND E
CUSTOMERS IN TERMS OF THE BILL
IMPACTS ON THE OVERALL ESTIMATES
. I THINK TYSON MAY HAVE SOME
ESTIMATES ON THAT FRONT, OR I
DON'T KNOW IF OTHER FOLKS ON THE
PG AND E SIDE CAN HELP PROVIDE
THE TRANSLATING THAT 75
STATEWIDE 60 IN SOME AREAS OF
THE STATE INTO THE YOUR ESTIMATE
OF BILL IMPACTS. YES. THIS IS
TYSON. YES WE'VE DONE SOME
STRESS TESTING OF THE BILL
IMPACTS FOR CUSTOMERS, BOTH
INSIDE PG NEWS SERVICE TERRITORY
AND IN SOUTHERN CALIFORNIA OR
ELSEWHERE IN THE STATE,
DEPENDING ON THE RANGE OF MARKET
PRICES, OR PG AND E, UH, SERVICE
TERRITORY CUSTOMERS OUR BEST
GUESS IS IT'S GOING TO BE, UH, A
DECREASE A BILL CREDIT OF AROUND
THE DOLLAR, PERHAPS A LITTLE BIT
MORE EVERY MONTH OVER THE
EXTENDED OPERATIONS PERIOD. YOU
KNOW, IN THAT RANGE IT COULD
RANGE FROM, UH, YOU KNOW, MAYBE
50 TO 75 CENTS PAYMENT TO UP TO
AS I MENTIONED BEFORE UP TO
POTENTIAL $4 AMONTH BILL
CREDIT. WITH RESPECT TO
CUSTOMERS OUTSIDE OF THE PGD
SERVICE TERRITORY. UM THE WAY
THIS IS STRUCTURED BEST
ESTIMATES THEY'LL PAY NOTHING
FOR THE ADDITIONAL OPERATION OF
DIABLO CANYON KIND OF ON A WORST
CASE AT THE OUTER END OF
POTENTIAL PRICES. YOU'RE LOOKING
AT IT MOST A DIME PER MONTH
INCREASE SO OVERALL, UH, OVERALL. VERY AFFORDABLE OPTION AND
POTENTIALLY EVEN A REVENUE
GENERATOR FOR CUSTOMERS. BUT
EVEN IN THE WORST CASE SCENARIOS
VERY LITTLE INCREMENTAL COSTS,
PARTICULARLY OUTSIDE OF THE PG
SERVICE TERRITORY. THANK YOU.
AND THEN MY FINAL QUESTION,
WHICH I KNOW I'VE ASKED YOU THIS
BEFORE IS IF WE DON'T DO THIS,
AND IF WE GET INTO A SITUATION
AND WE CAN CALL IT DOOMSDAY, WE
CAN CALL IT WHATEVER WE WANT TO
CALL IT, BUT, UM, YOU KNOW, I
SAW HOW STRONGLY CONSTITUENTS
REACTED WITH THE PRICE OF
GASOLINE GOING UP. IF WE DON'T
DO THIS, AND WE AND WE CONTINUE
ON THIS COURSE WITHOUT THE
ABILITY TO BACK TO BRING OUT OUR
OTHER RENEWABLES ONLINE AND THE
ADDITIONAL HIGHER COSTS OF
PROCUREMENT. WHAT DO WE
POTENTIALLY LOOKING AT AS
CONSUMERS? UH, IF, IF THE WORST
CASE THINGS HAPPEN. ARE
ESTIMATED ASSESSMENT IS AND WE
WOULD, YOU KNOW, LOOK AT PULLING
, DOING EVERYTHING WE COULD TO
AVERT OUTAGES. BUT OUR, UM OUR
ASSESSMENT IS THAT WITHOUT THIS
ALTERNATIVE, WE HAVE, UM, EITHER
MORE COSTLY OPTIONS. UM OR WE
ARE LOOKING AT A GREATER CHANCE
OF NOT BEING ABLE TO MAINTAIN
RELIABILITY DURING THIS PERIOD
WHEN WE LOOK AT IF YOU KNOW IF
WE WERE TO BE ABLE TO SECURE,
WHICH IS AN OPEN QUESTION. GIVEN
THE LIMITED AVAILABILITY, WE SEE
IMPORTS AS BEING A MORE
EXPENSIVE OPTION AND WE SEE THE
OTHER. YOU KNOW, WE KNOW AND
HAVE LOOKED AT WHAT'S AVAILABLE
IN GEOTHERMAL, AND WE DON'T
THINK THERE'S ANY GREATER
RESOURCES THERE. BUT IF WE CAN
LOOK AT, FOR EXAMPLE, ADDITIONAL
IMPORTS. THEY WILL BE MORE
EXPENSIVE. WE ARE LOOKING AT THE
COST OF LATE PROCUREMENTS NOW
AND IMPORTS IN TERMS OF WHAT
THEY'RE COMING IN AT IT CLEARLY
WHEN YOU HAVE WESTERN WIDE
CONSTRAINTS, AND YOU'RE TRYING
TO BUY ENERGY QUICKLY, UH, IT'S
PRETTY. IT'S VERY EXPENSIVE AND
WAY MORE EXPENSIVE THAN THIS
OPTION. UM AND IF THE OTHER THE
OTHER ALTERNATIVE THAT WE'VE
LOOKED AT IS, UH UH, COMBINED
CYCLE GAS, WHICH ALSO WOULD BE
MORE EXPENSIVE, SO WE SEE THIS
AS A MORE COST EFFECTIVE
ALTERNATIVE AND MORE RELIABLE
ALTERNATIVE FOR CALIFORNIANS,
RATEPAYERS AND TAXPAYERS. THANK
YOU. I'M GOING TO MOVE ON TO
QUESTIONS FROM OUR COLLEAGUES
OVER HERE TO THE LEFT. HARVEST
MISTAKENLY SKIPPED UP WITH KOREA
AND THEN DOCTOR QUIRKE. THANK
YOU. UM I'M PROBABLY THE NEWEST
LEGISLATOR OF THIS GROUP AND I
LOOK AROUND. AND SO MAYBE I HAVE
SOME QUESTIONS THAT ARE MORE
BACKGROUND. BUT, UM, OBVIOUSLY,
WHEN WE DECIDED TO CLOSED DOWN
AND DECOMMISSIONED DIABLO CANYON
. WE HAD A PLAN FOR GREATER
RELIABILITY IN THE FUTURE. AND
SO IT'S VERY HARD FOR ME SITTING
IN SAN DIEGO COUNTY AND SDG AND
E CUSTOMERS HAVE THAT WE PAY THE
HIGHEST UTILITY RATES NOT JUST
IN THE STATE, BUT IN THE ENTIRE
CONTINENTAL UNITED STATES. SO
WELL, THE WORST CASE SCENARIO IS
, YOU KNOW A DIME. I THINK I
JUST HEARD FROM MY CUSTOMERS. UM
IT'S HARD FOR ME TO JUSTIFY THIS
PROPOSAL BASED ON RELIABILITY TO
SD JUNIOR CUSTOMERS WHEN WE'RE
ALREADY PAYING THE HIGHEST RATES
IN THE CONTINENTAL UNITED
STATES. BECAUSE WE MUST HAVE HAD
A PLAN FOR THE RELIABILITY THAT
DIDN'T RELY ON DIABLO CANYON.
CAN SOMEBODY ADDRESS WHAT WERE
WHAT OUR PLAN WAS AND WHY THAT'S
CHANGED. AND HOW DO I GO BACK
AND SAY, YEAH, WE HAVE TO PAY
FOR SOMETHING. WHAT? WE'RE NOT
GOING TO USE THE ENERGY FROM AND
ATTACHED TO THAT, UM, WE ALSO
HAVE A C C. C C. C. A SAN DIEGO
COMMUNITY POWER. THEY HAVE NOT
TAKEN A POSITION ON NUCLEAR. BUT
MANY OF THE STAKEHOLDERS
INVOLVED IN SAN DIEGO BECAUSE OF
OUR EXPERIENCE WITH SANTA, NO
FREE AND SONGS, UM, ARE NOT ARE
VERY ANTI NUCLEAR AND SO IF THE
CIA DECIDES TO TAKE AN ANTI
NUCLEAR POSITION WILL THOSE
CUSTOMERS ALSO STILL HAVE TO
BEAR THE COST? FOR THE RIGHT
PAIRS. SO ON THE QUESTION OF
RELIABILITY AND THANK YOU FOR
THE QUESTION ON THE QUESTION OF
RELIABILITY. THIS RESOURCE WOULD
PROVIDE RELIABILITY TO SAN DIEGO
RESIDENTS IN THE SAME WAY IN
WHICH IT WOULD PROVIDE
RELIABILITY TO RESIDENTS IN THE
EDISON TERRITORY IN THE SAME WAY
IN WHICH WOULD PROVIDE
RELIABILITY IN NORTHERN
CALIFORNIA. IT IS A STATEWIDE
RELIABILITY SOLUTION AROUND
TRYING TO ENSURE THAT IT HELPS
ON THE ON THE COUNT ON THE
MAKING SURE THAT YOU KNOW
EVERYONE WITHIN THE CALORIES. H
RRITORY IS BENEFITING FROM THE
RELIABILITY RESOURCE. SO THAT'S
NOT THE QUESTION. THE QUESTION
WAS WHEN WE DECIDED TO SHUT
DOWN, DIABLO. WE HAD A PLAN FOR
GREATER RELIABILITY. WHAT
HAPPENED TO THAT PLAN? I WAS
GOING TO ANSWER THAT QUESTION
NEXT, SO THANK YOU FOR RESTATING
IT. UM WE HAD A PLAN. THE PLAN
WAS THE PLAN ASSUMED WAS BASED
ON HISTORICAL PROJECTIONS, SO IT
HAD LESS DEMAND THAN THE DEMAND
AND HOW HAS MATERIALIZED IN
LIGHT OF CLIMATE CHANGE. UM AND
IN LIGHT OF THE PACE OF OUR
TRANSITION, SO OUR DEMAND IN OUR
FORECAST AND OUR NEEDS ARE
EXCEEDING OUR FORECAST BY A
RANGE OF ABOUT 1200 MEGAWATTS
PER CYCLE, SO WE WERE OUR
NUMBERS WERE OFF AND WE
PROJECTED A LOT LESS DEMAND THAT
WE ACTUALLY HAVE ON HIS ACTUALLY
MATERIALIZING TODAY. SECOND
ELEMENT. IS UH, WE, UM WE AT THE
TIME OF THE DECOMMISSIONING, WE
WERE FOCUSED ON PEAK AND WHAT WE
NEEDED AT PEAK HOUR. WE KNOW NOW
THAT WE NEEDED TO ALSO BE
PLANNING FOR NET PEAK. SO FOR
WHAT IS OUR PEAK WHEN SOLAR IS
COMING DOWN? THE PROJECTIONS
ALSO OVERSTATED THE AMOUNT OF
ENERGY WE COULD COUNT ON FOR HIM
SOLAR FOR PURPOSES OF OUR
OVERALL PLANNING, SO
ESSENTIALLY, OUR DEMAND
PROJECTIONS WERE OFF. ARE
AVAILABLE RESOURCES AND THE
ASSUMPTIONS WERE HIGHER THAN
ANTICIPATED, AND WE ARE CATCHING
UP AND THEIR PROCUREMENT THAT
HAVE BEEN ORDERED TO BE ABLE TO
CLOSE THE GAP. BUT THEY ARE, UM
, WE WERE TRYING TO GET, UM A
LOT DONE VERY QUICKLY, AND IT'S
NOT COMING IN AT PACE BECAUSE OF
SIMILAR SUPPLY CHAIN CHALLENGES
THAT HAVE HAPPENED SO THE
UNDERLYING CHALLENGES
UNFORTUNATELY, PROJECTIONS WERE
OFF AROUND. WHAT WE THOUGHT THE
MAN WAS GOING TO BE. THE UM,
PROJECTIONS, UM, ALSO HAD SOME
CHALLENGES THAT OVERSTATED
AVAILABLE SUPPLY AND THE PACE OF
WHICH PROJECTS ARE COMING ONLINE
. NOW THAT WE'RE CATCHING UP IS
INSUFFICIENT TO BE ABLE TO
MAINTAIN RELIABILITY AT THE
LEVELS NEEDED, UM, WITHOUT THIS
RESOURCE. AND COULD I ASK EDS.
MÀ. HAFTA ALSO ANSWERED THAT
QUESTION. SO. THE STATEMENT THAT
DEMAND IS INCREASING UNEXPECTED
LEVELS IS SIMPLY WRONG, AND I
WOULD LIKE TO PUT IN THE RECORD
THE LATEST KEY STATISTICS FROM
THE KAISER, WHICH GOES BACK TO
2000. 10 ON WHAT THE PEAK DEMAND
HAS BEEN YEAR BY YEAR AND WHAT
IT IS IN THE MUD SO THAT YOU CAN
ACTUALLY SEE THE ACTUAL
HISTORICAL DATA THROUGH 2021, SO
THE ADMINISTRATION IS NOT
CORRECTLY TELLING YOU THE FACTS
ABOUT WHERE PEAK DEMAND IS.
THERE IS IT IS, I THINK, CORRECT
TO SAY THAT WE ARE NOW PLANNING
FOR WHAT? WE'RE CALLING NET PEAK
DEMAND. WHICH IS THE PERIOD OF
TIME WHEN THE SUN IS SETTING AND
WE'RE SEEING DECREASED SOLAR, UH
, POWER, AND THAT'S THE REASON
WHY WE NEED MORE BATTERY STORAGE
. THE PUC DID ACT TWICE NOW N
PROCUREMENT ONCE IN 2019, AND
ONCE IN 2021. AND EACH TIME I AT
LEAST IN 2019, THEY WERE TOLD
THEY NEEDED TO DO MORE, AND THEY
DECIDED NOT TO DO MORE. THEY
WERE THEY WERE ADVISED BY
SOUTHERN CALIFORNIA EDISON TO
PROCURE 5000 MEGAWATTS OF NEW
CAPACITY AND MADE A DECISION TO
PROCURE 3300. THEY CORRECTED
THAT IN IN JUNE OF 2021 WHEN
THEY MADE THE ORDER TO PROCURE
THE 11.5 GIGAWATTS OF 11.5
GIGAWATTS OF NEW RESOURCES, AND
I THINK THE OPEN QUESTION IS,
ARE THERE REAL DELAYS SUPPLY
CHAIN OR WHATEVER, WHAT THEY'RE
CALLING HIM. I BELIEVE IT'S MORE
THE INTERCONNECTION PROCESS. YOU
WOULD PUSH THOSE NEEDED PROJECTS
OUT BEYOND THE SUMMER. SUMMER OF
2025. THAT'S REALLY THE KEY
PERIOD WE'RE GOING TO RETIRE
3700 MEGAWATTS VERY OLD 19
FIFTIES VINTAGE FOSSIL FUEL
PLANTS ON THE SOUTH COAST. THOSE
SHOULD RETIRE NEXT YEAR AND THEN
WE'RE GOING TO RETIRE. AH DIABLO
CANYON. THE TOTAL IS 3700 FOSSIL
2200 OF DIABLO, SO WE NEED TO
REPLACE 5900 MEGAWATTS. THE
ORDER IS TO GET 11,500 MEGAWATTS
, SO THE ORDER IS CLEARLY
SUFFICIENT. THEY PUC IS
RECOGNIZED IT AND THEY'RE ADDING
TO THE RESERVE MARGIN, MS MARTA
SANTOS SAYS, WELL, THE IMPACT IS
ONLY GOING TO BE JUST THE
NUCLEAR PLANT THE $73 OR
WHATEVER IT IS. THAT'S NOT
ACTUALLY CORRECT. YOU NEED TO
LOOK AT THE PORTFOLIO EFFECT.
WHAT IS THE COMBINATION THAT
CHANGED PORTFOLIO AS A RESULT OF
KEEPING LOW CANYON WITHIN THE
MIX OF RESOURCES AND ADDING
RESOURCES SO THAT YOU RESERVE
MARGIN INSTEAD OF BEING 15%
MIGHT END UP BECAUSE YOU DOUBLE
PROCURING THE ABLOW PLUS
EVERYTHING ELSE THAT YOU NEED TO
LONGER TERM REDUCED GREENHOUSE
GASSES MAY END UP WITH THE 25%
30% RESERVE MARGIN. THAT HAS A
MAJOR IMPACT ON AFFORDABILITY.
IF YOU'RE KEEPING ASSETS, UH, IN
THE RATE BASE OR REQUIRING THE
LOAD SERVING ENTITIES TO
CONTRACT FOR RESOURCE ADEQUACY
WITH THESE ASSETS THAT ADDS COST
TO THE SYSTEM, SO THERE ARE REAL
OPPORTUNITY COSTS HERE THAT THE
DECISION MAKERS THE KEY DECISION
MAKERS AT THE PUC NEED TO
BALANCE AFFORDABILITY AND
RELIABILITY. NEED TO BE
CAREFULLY BALANCED. AND IF WE IF
WE GOLD PLATE THE SYSTEM AND GET
SUPER HIGH RESERVE MARGINS,
YOU'RE GONNA ADD COSTS TO
EVERYBODY. SO IT'S A REAL
CAREFUL DECISION THAT NEEDS TO
BE EVALUATED IN A RIGOROUS WAY
AND FRANKLY, MY VIEW IS IT
HASN'T BEEN DONE SO FAR. HERE IN
IN THIS IN THIS PROCESS. THANK
YOU. I'M GONNA ASK MAYBE MADE
MADSEN IS A RESPONSE, BUT ANY
FOLLOW UP QUESTIONS? PLEASE HAVE
SOME OTHER QUESTIONS, TOO. I
THINK I ASKED THE QUESTIONS OVER
CCH DECIDES TO BE, UM NO NUCLEAR
WILL THEY STILL HAVE TO PAY THE
NUCLEAR FEE? YES. OKAY? AND
THEN, UM, ONE OF THE THINGS I
THINK WE'VE TALKED ABOUT THIS
BEFORE, AS I'M VERY CONCERNED,
UM, ABOUT COASTAL MITIGATION.
AND MY READ OF THIS IS THAT
YOU'RE TRYING TO KEEP ALL
AGENCIES ENVIRONMENTAL REVIEWS.
BUT WHEN I READ THE LATEST
PROPOSAL AND PLEASE CORRECT ME
IF I'M INCORRECT IS THAT THE
COMMISSION REVIEW GOES TO THE
CPUC. SO CAN YOU TALK IN THE
PROPOSAL CURRENTLY ABOUT WHAT
THE COASTAL COMMISSION REVIEW
PROCESS WILL BE OF FOR THE
EXTENSION OF DIABLO CANYON? THE
HAPPY TO THE COASTAL COMMISSION
, UM, WILL REQUIRE WILLIS WOULD
BE REQUIRED TO MAKE CONSISTENCY
, DETERMINATION. THIS IS AN
ELEMENT THAT THE NUCLEAR
REGULATORY COMMISSION REQUIRES
THE COASTAL COMMISSION DO THE
COASTAL AGENCY DO AS PART OF THE
NRC PROCESS. SO THAT IS THE ONE
DETERMINATION THAT IS REQUIRED
FROM THE COASTAL COMMISSION THAT
THEY WOULD DO UNDER UNDER THE
STATUTE. THE SECOND ELEMENT IS A
POTENTIAL AT THIS JUNCTURE. IT
IS NOT PROJECTED THAT THERE IS
ANY NEED TO EXPAND THE PAD WHERE
THE WHERE THE FUEL IS STORED.
BUT IF THERE WAS TO BE A NEED TO
EXPAND THAT, UH THAT PAD THAT
WOULD REQUIRE A COASTAL
DEVELOPMENT PERMIT AND THAT THE
LEGISLATION MAKES IT REALLY
CLEAR THAT THAT WOULD BE
SOMETHING THAT WOULD HAVE TO GO
THROUGH THE COASTAL COMMISSION
AND WOULD BE SUBJECT TO REGULAR
PROCESS. SO THE PIECE THAT WE
KNOW IS REQUIRED IS THE COASTAL
COMMISSION WOULD BE REQUIRED TO
MAKE THE CONSISTENCY,
DETERMINATION. UM AND THEN,
DEPENDING ON WHAT HAPPENS, THE
COASTAL COMMISSION OR AT A LATER
POINT IN TIME, COULD HAVE TO
CONSIDER A CHANGE OF COASTAL
DEVELOPMENT PERMIT AND THAT
WOULD BE DONE IN THE REGULAR
AUTHORITY. SO BUT MY
UNDERSTANDING, AND PERHAPS I'M
INCORRECT, BUT MY UNDERSTANDING
IS, UM, THE EXTENSION OF THE USE
ITSELF WOULD TRIGGER COASTAL
MITIGATION THROUGH THE COASTAL
COMMISSION. THE EXTENSION ITSELF
. MY CONCERN WOULD REQUIRE A
PERMIT FROM THE STATE WATER
BOARD ASSOCIATED WITH THE
OPERATION OF THE ONES THROUGH
COOLING PLANT. THE DETERMINATION
THE COASTAL DETERMINATION ON THE
COASTAL ROLE IN THIS PROCESS
WOULD BE SPECIFIC TO THE
CONSISTENCY, DETERMINATION. THE
COAST. THE ONCE THROUGH COOLING
PLANT WOULD BE SOMETHING THAT
WOULD HAVE TO BE CONSIDERED BY
THE STATE WATER BOARD, NOT BY
THE COASTAL COMMISSION. AND THAT
WOULD REQUIRE MITIGATION AND I
THINK MY COLLEAGUES HAVE COVERED
UH, THE ISSUE AROUND THE
CALCULATION OF THE SHAREHOLDER
PROFITS. UM FOUR PG AND E. AND I
JUST WANT TO ECHO SOME OF THOSE
CONCERNS. I'M VERY CONCERNED
THAT WE'RE WE'RE GIVING. SO MANY
FREE PASSES TO GET SOMETHING AS
I THINK OUR BUDGET SHARE SAID
THAT TO ADDRESS THIS PEAK DEMAND
RATHER THAN THE BASE LOAD, AND I
THINK THAT'S OUR BASE DEMAND AND
I THINK THAT'S A REALLY HUGE
CONCERN FOR ME. UM AND SO I JUST
YOU KNOW, WE DON'T HAVE TO DO
THIS, BUT I JUST WANT TO ECHO
SOME OF THOSE COMMENTS BECAUSE I
SHARE THEM. THANK YOU AWESOME
MEMBER KOREA. THANK YOU. THANK
YOU, MR CHAIR. I WANNA. START BY
ECHOING SOME OF THE COMMENTS
THAT HAVE PREVIOUSLY BEEN MADE
BY SOME OF MY COLLEAGUES
PRIMARILY EARLIER.
ASSEMBLYMEMBER'S MURATSUCHI, WHO
IS OFTEN CONVERSATIONS RELATED
TO CLIMATE AGAIN. ANOTHER
PROPOSAL BY THE ADMINISTRATION
THERE WAS SENT TO THE
LEGISLATURE AD A CRITICAL TIME
IN WHICH WE ARE IN FINAL
NEGOTIATIONS AND ANY ADDITIONAL
CONVERSATIONS RELATED TO BUDGET
AS WELL AS BILLS THAT ARE MOVING
BETWEEN BOTH HOUSES. I SHARE
THAT FRUSTRATION BECAUSE. THE
LEGISLATURE IN OUR OFFICES ARE
VERY LIMITED WITH TIME AND VERY
LIMITED WITH STAFF. MY STAFF
HERE IN THE CAPITAL. I HAVE A
STAFF OF FOUR. IN THE DISTRICT.
I ALSO HAVE A STAFF OF FOUR WE
RELY ON THE EXPERTISE OF
CONSULTANTS AND FOCUS IN THE IN
IN THE BUILDING. THAT HAVE
INSTITUTIONAL KNOWLEDGE AND SOME
OF THE ISSUES THAT ARE MUCH
LARGER THAN WHAT WE DEAL WITH ON
A DAY TO DAY. AND I WILL SHARE
THAT IT IS INCREDIBLY
FRUSTRATING TO RECEIVE THESE
LAST MINUTE. NOT VETTED NOT GONE
THROUGH POLICY COMMITTEE. NOT
GONE THROUGH THE PROCESS OF
RESPECTING THE LEGISLATIVE
PROCESS IN BOTH HOUSES AND THE
ASSEMBLY AND IN THE SENATE TO
MOVE POLICY. THAT IS HUGE. WE
CAN'T DO. THIS IS NOT HOW WE
OPERATE, AND IT IS, UM
DISRESPECTFUL. THROUGH THE
PROCESS. AH, AND IT IS
DISRESPECTFUL TO THE OFFICE IS
THAT WE HOLD SO THEN WE GET THIS
AND I'M READING THIS. UM, WE
DON'T HAVE A LOT AND I AND AGAIN
I SHARE THAT BECAUSE WE HAVE
WHAT 24 HOURS TO READ. YOU KNOW,
PROPOSALS AND, UM. JUST
BREAKDOWNS OF WHAT THIS IS
SUPPOSED TO BE. AND HERE IN A
HEARING TRYING TO FIGURE IT OUT,
AND HOW DO WE HOW ARE WE MOST?
RESPECTFUL TO ALL OF THE
CONCERNS. SO I SHARE THAT
BECAUSE I'VE HEARD A COUPLE OF
THINGS TODAY THAT JUST GIVES ME
PAUSE. AND THAT IS THE
CONVERSATION AROUND A JUST
TRANSITION. I'VE BEEN ON SOME OF
THOSE CONVERSATIONS AND IT IS
INCREDIBLY DIFFICULT. THERE'S
ONE THING TO ACTUALLY SAY, JUST
TRANSITION AND THEN THE ACTUAL
IMPLEMENTATION OF JUST
TRANSITION WITH THE STATE'S
GOALS AND OF REDUCING OUR
RELIABILITY ON FOSSIL FUELS AND
WHAT HAPPENS TO WORKERS AND
THOSE PARTICULAR INDUSTRIES AND
HOW WE PIVOT TO MORE. CARBON
FRIENDLY AND RENEWABLE ENERGY
ALTERNATIVES. IT'S EASY TO TALK
ABOUT A JUST TRANSITION UNLESS
WE'RE ACTUALLY DOING IT, AND YOU
CAN'T TAKE A JOB THAT PAYS SIX
FIGURES. AND THINK THAT WE'RE
GOING TO TRANSITION A WORKER TO
SOMETHING THAT PAYS 15 TO $20 AN
HOUR. THAT'S NOT IT JUST
TRANSITIONS. AND THEN I LOOK AT
THE SUMMARY FROM TURN. AND I'M
GONNA JUST ECHO VERY QUICKLY AND
SHARE. THE ANNUAL PG AND E
PROFITS POISED TO INCREASE BY
THREE TIMES. P JENNY CURRENTLY
EARNS AN AVERAGE OF 150 YEAR
FROM DIABLO CANYON UNDER THE
GOVERNOR'S PROPOSAL, PG AND E
PROFITS FROM W. KENYON WOULD
RISE TO 275 YEAR. STARTING NEXT
YEAR. THAT'S AN 80% INCREASE.
300 MILLION IN 2025. THAT'S A
260% INCREASE AND 460 MILLION
STARTED IN 2026. THAT'S A 310.
INCREASE. SEVERAL OF MY
COLLEAGUES HAVE ALREADY
EXPRESSED HOW CONCERNING THAT IS
AND HOW DO WE GO BACK TO OUR
CONSTITUENTS AND SAY THAT WE
ALLOWED FOR THIS TO HAPPEN. UM.
I SHARE AND WANT TO FIGURE OUT A
WAY IN WHICH WE INCREASE OUR
RELIABILITY ON THE GRID. I THINK
THAT WHAT WE WOULD WHAT I WOULD
HAVE LIKED TO HAVE IS MORE TIME.
AND TO SEE ADDITIONAL
ALTERNATIVES THAT ARE NOT
NECESSARILY REOPENING OR
EXTENDING THE LIFE OF DIABLO
CANYON, BUT ALSO CREATING MORE
OPPORTUNITIES OR WIND SOLAR
HYDROGEN AND OTHER ALTERNATIVES
BECAUSE I DO AGREE WITH THE
ADMINISTRATION THAT WE SHOULD
HAVE. A DIVERSE ENERGY PORTFOLIO
THAT MEETS THE NEEDS. OF THE
CURRENT UH, GRID BUT EXTENDS
EVEN FURTHER TO WHAT WE WANT TO
ACCOMPLISH, WHICH IS 100%
RENEWABLE ENERGY. AND SO I FIND
MYSELF, UH, TRYING TO UNDERSTAND
WHY THIS COMES SO LAST MINUTE
UM, AMID EVERYTHING ELSE. AND
ALSO TRYING TO UNDERSTAND HOW DO
WE GET TO A COMPROMISE IN WHICH
WE PUT WORKERS IN THE SPACE. WE
ENSURE THAT WE ARE MEETING OUR
CLIMATE GOALS. THAT WE ARE
REDUCING OUR UH, USE OF FOSSIL
FUELS THAT WE ARE ACTUALLY
PROCURING MORE CLEAN ENERGY THAT
WE HAVE STORAGE CAPABILITIES
THAT WE MOVE FORWARD AN AGENDA
FOR CALIFORNIA THAT IS FOCUSED
ON THE GOALS THAT WE HAVE. BUT
IT IS VERY DIFFICULT TO DO THAT.
WHEN WE DON'T HAVE THE TIME OR
WERE NOT GIVEN THE OPPORTUNITY
AS MEMBERS OF THE LEGISLATURE.
TO ACTUALLY VET. THESE GIANT
PROPOSALS. AND SO. I'D LIKE TO
KNOW FROM THE ADMINISTRATION.
JUST IN A VERY REAL WAY. WHAT
DOES IT LOOK LIKE TO HAVE
PARTNERSHIP WITH THE LEGISLATURE
FOR YOU? BECAUSE IT DOESN'T LOOK
LIKE THIS TO ME. AND OUR OTHER
MEMBERS OF THIS COMMITTEE HAD TO
STEP OUT TO GO TALK AND DISCUSS
AND NEGOTIATE. CLIMATE PACKAGE
WHILE WE'RE HERE TRYING TO
FIGURE OUT HOW DO WE DISCUSS THE
APPLE CANYON? AMID EVERYTHING
ELSE? THAT'S KIND OF BEEN THROWN
TO THE LEGISLATURE. SO I'M
INTERESTED IN PARTNERSHIP. I'M
INTERESTED IN VETTING. I'M
INTERESTED IN POLICY
DISCUSSIONS. AND I'M INTERESTED
IN RESPECTING THE LEGISLATIVE
PROCESS. CURRENTLY DON'T SEE
THAT AND I LIKE TO FIGURE OUT
WHY. THANK YOU FOR THAT. UM WE
VERY MUCH APPRECIATE THE
PARTNERSHIP AND RESPECT THE
PARTNERSHIP. MANY OF THE ISSUES
WE SEE IN, UH, THE CRITICAL NEED
TO TAKE ADDITIONAL ACTIONS AND
TO EXPEDITE OUR ACTIONS TO MAKE
IT CLIMATE CHANGE. I THINK THE
GOVERNOR UM HAS HAS COME INTO
SUPPORT. LEGISLATION THAT
GENERALLY HAS BEEN PART OF
LEGISLATIVE DELIBERATIONS ACTIVE
BILLS THIS YEAR LEGISLATION THAT
THAT WAS PROPOSED LAST YEAR THAT
MOVED OUT OF OUT OF ONE HOUSE
AND DID NOT MAKE IT ACROSS THE
FINISH LINE. THE ISSUES THAT THE
GOVERNOR HAS SUPPORTED IN TERMS
OF THE FIVE PILLARS OF HIS
CLIMATE PACKAGE. THAT HE IS
SUPPORTING, GIVEN THE NEED TO
TAKE URGENT ACTION TO MITIGATE
CLIMATE CHANGE ARE ONES THAT
HAVE BEEN UNDER DISCUSSION, AND
HE IS ENGAGING IN THAT
DISCUSSION, SUPPORTING THAT
LEGISLATION AND PROPOSING
SPECIFIC AMENDMENTS IN THE
INTEREST OF MAKING SURE THAT
THOSE BILLS THAT HAVE BEEN
CONSIDERED, UM GET THAT THAT
THERE'S AN OPPORTUNITY TO TAKE
ACTION WITH A PACKAGE. THAT
COUPLED WITH THE BUDGET
INVESTMENTS THAT HAVE BEEN
BEFORE YOU SINCE JANUARY,
EXPANDED IN MAY AND THAT YOU
HAVE MADE IMPORTANT IMPROVEMENTS
THROUGH THE POLICY PROCESS. UM
THE THAT THAT WE SEE THAT AS AN
OPPORTUNITY TO MOVE FORWARD ON
IDEAS THAT PERHAPS HAVE NOT
GOTTEN ACROSS THE FINISH LINE
THAT WE THINK NOW CAN THAT WILL
CONTINUE CALIFORNIA'S LEADERSHIP
IN MITIGATING CLIMATE CHANGE. IN
TERMS OF DIABLO CANYON AND THE
TIMING OF THE ALLEGHENY. IN THIS
EXTENSION, WE WISH WE HAD MORE
TIME. UM THE EXAMINATION INTO
WHERE WE WERE, UM, AND THE MID
CYCLE REVIEW OF OUR WHERE WE ARE
IN RELATIONSHIP TO OTHER
REPLACEMENT RESOURCES AND WHAT
OUR OVERALL NEEDS. WHAT IT WAS,
IS ONE WHERE YOU KNOW IT. WE
HAVE BEEN WORKING WITH THE
ENERGY AGENCIES TO DO AS SOON AS
THE AIR ENERGY AGENCIES
IDENTIFIED THAT THEY THOUGHT WE
WERE SHORT IN APRIL. WE ENGAGE
IN CONVERSATION. WITH YOU ON A
REAL TIME BASIS OF WHERE WE
FOUND OURSELVES WERE REALLY
APPRECIATIVE OF SIGNIFICANT
ACTIONS AND THE PARTNERSHIP THAT
WE HAD IN IN JUNE THAT YIELDED
REALLY IMPORTANT ACTIONS TO PUT
US INTO A BETTER POSITION,
MOVING FORWARD TO ACCELERATE
PROJECTS AND TO TAKE OTHER
ELEMENTS ON FORTUNATELY WHERE WE
ARE IS AT THIS JUNCTURE WE ARE.
WE ARE NOT WHERE WE NEED TO BE
TO MAINTAIN RELIABILITY THROUGH
THIS DECADE WITH THE PLAN IF THE
PLAN RETIREMENT CONTINUE TO MOVE
FORWARD. AND THE CHALLENGE WE
FIND OURSELVES WITH IS THAT THE
TIMING TO DECIDE WHETHER OR NOT
TO KEEP THIS OPTION OPEN IS NOW
JUST IN LIGHT OF WHAT IS
REQUIRED TO MOVE IN A DIFFERENT
DIRECTION THAN WHERE WE'VE BEEN
SO THE PERMITS THE NECESSARY
APPROVALS THAT IN THE NECESSARY
SCRUTINY THAT WOULD BE
ASSOCIATED WITH EXTENSION
REQUIRES A CHANGE. AND THAT
CHANGE IN ORDER TO MAKE IT
POSSIBLE TO EXTEND IT IS ONE
THAT IS NEEDED NOW, THE DEADLINE
FOR THE FEDERAL FUNDING AND THE
OPPORTUNITY THAT PRESENTED
ITSELF AS RECENTLY AS JULY, UM
IS ONE THAT IS AVAILABLE AT THIS
JUNCTURE AND THAT WAS NOT
AVAILABLE IN JANUARY. SO I HEAR
YOU IN TERMS OF THE TIMING HERE
. YOU IN TERMS OF THE CHALLENGE
. I WISH WE WERE IN A DIFFERENT
POSITION IN TERMS OF NOT NEEDING
TO EXTEND THIS RESOURCE AND WISH
WE WERE IN A DIFFERENT POSITION
IN RELATIONSHIP TO TIME. BUT THE
SITUATION IS EVOLVING ON A REAL
TIME BASIS. THE ANALYSIS THAT
LED THE ENERGY AGENCIES TO
CONCLUDE THAT WE WERE NOT WHERE
WE NEEDED TO BE, UM IS HAPPENED
THIS SPRING, AND WE SHARED IT AS
QUICKLY AS POSSIBLE. THE
OPPORTUNITY FOR FEDERAL FUNDING
PRESENTED ITSELF THIS SUMMER AND
YES, THE TIME IS SHORT. BUT
UNFORTUNATELY WE ARE IN A
POSITION WHERE WE THINK THAT
WHAT IS NECESSARY TO CONTINUE TO
TAKING THE ACTIONS THAT WE NEED.
UH TO MAINTAIN OUR RELIABILITY
AS WE CONTINUE TO MOVE TOWARDS
OUR CLEAN TRANSITION AND
CONTINUE TO TAKE ACTIONS TO
MITIGATE CLIMATE CHANGE IS TO AH
TO MAKE AN EXTENSION POSSIBLE,
AND THAT WOULD BE SOMETHING THAT
WOULD NEED TO HAPPEN NOW, GIVEN
THE FEDERAL TIMELINES AND GIVEN
THAT THE PERMITTING TIMELINES
THAT WOULD BE REQUIRED TO FOLLOW
UP. THANK YOU FOR THAT. I REALLY
DO APPRECIATE YOU SAYING THAT
THERE IS VALUE TO PARTNERSHIP.
BUT WHEN THIS DROPPED FOR LACK
OF A BETTER WORD WHEN WE WERE
TALKING ABOUT WHAT THIS WOULD
LOOK LIKE IN THE ASSEMBLY,
OFFERING A POTENTIAL
COUNTERPROPOSAL THAT HAD MORE
MORE OF A DIVERSITY OF WHERE WE
WANT TO GO. UM YOU KNOW, AND I
WANT TO SHARE THIS WITH YOU. BUT
WHERE? WHERE IS PARTNERSHIP WHEN
SOMEONE WHEN SOMEONE IN THE
ADMINISTRATION SAYS THAT THE
ASSEMBLY PROPOSAL FEELS LIKE
FANTASY AND FAIRY DOESN'T
REFLECTS A LACK OF VISION AND A
LACK OF UNDERSTANDING ABOUT THE
SCOPE OF THE CLIMATE PROBLEM.
PARTNERSHIP IS IN CONTINUING THE
CONVERSATION AND LOOKING AT THE
OPPORTUNITY FOR WHAT RESOURCES
CAN BE BROUGHT FORWARD TO ENSURE
THAT THEY'RE MOVING FORWARD.
WITH ALL OF THE ABOVE THE
FOCUSES ON FIGURING OUT WHAT CAN
BE DONE WHAT IS POSSIBLE TO GET
ONLINE ON THE TIME, SIRI HOW DO
WE MOVE AS QUICKLY AS POSSIBLE
ON GETTING ALL THE CLEAN OPTIONS
ONLINE AS POSSIBLE? BUT MAKE
SURE THAT WE HAVE THE ROOM TO BE
ABLE TO HAVE THIS RESOURCE THAT
WE BELIEVE IS NECESSARY TO BE
ABLE TO MAINTAIN RELIABILITY. UM
YOU KNOW, AT THIS JUNCTURE.
QUITE ANSWER MY QUESTION, BUT I
APPRECIATE IT. HOW DO WE RESPOND
TO THE 310% INCREASE TO PG ANY
PROFITS? AS YOU MENTIONED, UM,
THE SO THE FIRST PIECES. THE
COMPENSATION STRUCTURE PROVIDED
IN THIS PROPOSAL. UM FIRST IS,
YOU KNOW NOT ALLOWING ANY
GENERATION OF PROFITS THAT WOULD
GO TO SHAREHOLDERS. THERE IS A
VARIABLE COMPENSATION WHERE
THERE UM, IS UP THERE, YOU KNOW,
PG AND E COULD GET NOTHING UNDER
THESE MANAGEMENT FEES. IF THEY
DON'T PERFORM, THEY COULD GET
THEY COULD GET REVENUE IN A
MANAGEMENT FEE PAID IF THE
PERFORMANCE OCCURS THOSE DOLLARS
. THOSE REVENUES HAVE TO GO TO
FUNDING THE WORK ASSOCIATED WITH
THE EXTENSION OF THE ADVIL
CANYON OR TO FUND OTHER ELEMENTS
THAT ARE CRITICAL PRIORITIES AND
THAT TODAY ARE THINGS THAT ARE
SUBJECT TO COST RECOVERY FROM
RATEPAYERS, INCLUDING THE
INTERCONNECTION AND THE SOME OF
THE ISSUES THAT HAVE BEEN RAISED
AROUND HOW TO MAKE SURE THAT
WE'RE DOING MORE ON THE
INTERCONNECTION SIDE AND
SPEEDING THAT UP. THINGS TO HELP
BE ABLE TO SUPPORT OUR CLEAN
TRANSITION AS WELL AS NECESSARY
INVESTMENTS TO GET TO A PLACE OF
GREATER SAFETY AND RELIABILITY
OF TRANSMISSION. WOULD UH,
HARDENING OF DISTRIBUTION LINES
AND OTHER COMPONENTS SO THAT THE
COMPENSATION STRUCTURE HAS, UH,
YOU KNOW IS WE THINK FAIR, UM,
CONSISTENT WITH WHAT WE THINK IS
NECESSARY TO ENSURE THAT THERE
IS A REAL PERFORMANCE INCENTIVE
IN MAKING SURE THAT WE DELIVER
AND DOLLARS BASED ON THE
PROVISIONS IN THE STATUTE HAVE
TO GO DIRECTLY TO PAY FOR THE
COST OF OPERATING OR IT HAS TO
GO FOR OTHER PUBLIC PURPOSES
THAT WE THINK ARE IMPORTANT FOR
RATEPAYERS. AND FOR CALIFORNIANS
FROM A SAFETY STANDPOINT FROM A
CLEAN TRANSITION STANDPOINT. THE
DOLLARS CANNOT GO FOR PROFITS
THAT GO TO SHAREHOLDERS OR OTHER
LIKE THINGS, AS SOME OF THE
THINGS THAT HAPPEN SUGGESTED
THAT ARE NOT ALLOWABLE UNDER THE
STATUTE. THANK YOU VERY MUCH,
DOCTOR QUIRKE. UM. WOW! LONG
DAY. UM COUPLE THINGS. FIRST OF
ALL, MOST OF THE QUESTIONS HAVE
BEEN ANSWERED SO I'LL JUST START
OUT WITH, UM SO SOME STATEMENTS
HERE. SO IT IS VERY CLEAR THAT
PG AND E WILL MAKE NO MORE FROM
DIABLO CANYON IN TERMS OF A
PROFIT THAT GOES TO STOCKHOLDERS
THAN IT DOES NOW. ALRIGHT,
THAT'S REALLY IMPORTANT. UH
SECOND, THERE'S A CONCERN ABOUT
GOLD PLATING. YOU KNOW, WE'RE
GOING TO PROCURE TOO MUCH.
THAT'S IN FACT, WHAT DELAYED AH
, THERE WAS A BIG TO DO. YOU
KNOW, NEWSPAPERS SAY WE'RE
PROCURING TOO MUCH. AH, MODELS
WERE NOT ACCURATE. AND WE
ACTUALLY SLOWED PROCUREMENT
DOWN. AND WE'RE TRYING TO SPEED
IT UP AGAIN. THERE IS NO DOUBT
THAT EVERYBODY ON THIS DAIS AND
ALL OF MY COLLEAGUES WELL MAYBE
NOT ALL BUT. MOST OF MY
COLLEAGUES WOULD HAVE PREFERRED
IT IF WE COULD HAVE HAD STORAGE
AND RENEWABLES AND WHAT WE'RE
BEING TOLD BY THE ADMINISTRATION
, AND I BELIEVE IT IS THAT
BECAUSE OF PROBLEMS IN THE
SUPPLY CHAIN BY AND LARGE CHINA
TRYING OR WE'RE JUST NOT GOING
TO BE ABLE TO GET THOSE ONLINE.
SO IT'S A COMBINATION OF HAVING
SLOWED DOWN AND PROCUREMENT THE
TIME WE SHOULDN'T HAVE AND NOW
HAVING SUPPLY CHAIN PROBLEMS TO
GO ON. SO THERE'S NOT GOING TO
BE GOLD PLATING WILL WILL WILL
WILL GET THESE RENEWABLES ONLINE
AND WE WILL TAKE UM, YEAH. BLUE
CANYON OFFLINE THAT WILL HAPPEN.
THERE'S A QUESTION ABOUT BASE
LOAD. WHY ARE WE PUTTING IN BASE
LOAD WHEN THE PROBLEM IS THE
DUCK CURVE AROUND FIVE O'CLOCK
IN THE EVENING? THE ANSWER IS
UNLESS YOU'RE ABLE TO PUT ON
SOLAR WITH ADEQUATE STORAGE. IF
YOU JUST BUILD THE SOLAR, YOU
JUST MAKE THE PROBLEM WORSE. IF
YOU HAVE BASE LOAD THAT BASE
LOAD KEEPS GOING. IT DOESN'T GO
DOWN AT FIVE OR SIX O'CLOCK AT
NIGHT, AND THAT'S WHY IT'S
USEFUL TO HAVE MORE BASE LOAD,
WHICH IS WHAT WE GET. FROM
DIABLO CANYON. UM LET'S SEE. OH,
IT IS A MANAGEMENT FEE,
ACCORDING TO UM, TURN COULD BE
AS MUCH AS $3 BILLION OVER 10
YEARS. UH UM, I THINK THAT THE
ANNUAL CALCULATION THEY'RE
LOOKING AT THE OVERALL AMOUNT IN
LOOKING AT 10 YEARS. THE
EXTENSION THAT IS BEING
CONSIDERED. THAT WAS BEFORE YOU
AS A FIVE YEAR EXTENSION. IT'S
FIVE YEARS. AND WHAT WAS THE
NUMBER OF, UH OH, YEAH, THAT
NUMBER WAS OVER. FIVE YEARS.
OKAY SO THAT'S THREE BILLION
OVER FIVE YEARS. I BELIEVE THEIR
ESTIMATE WAS OVER A 10 YEAR
PERIOD. BUT I THINK THEY MAY BE
AVAILABLE TO BE ABLE TO DO IT. I
THINK THEIR INITIAL FORECAST WAS
LOOKING AT A 10 YEAR PERIOD ON A
FIVE YEAR PERIOD. ALL RIGHT NOW,
ANYTHING PG AND E SET SPENDS,
WHETHER IT'S FOR TRANSMISSION.
UNDER GROUNDING. UM LINES FOR
MANAGEMENT. THAT ALL HAS TO BE
DONE BY THE CPUC, WHICH IS ONE
OF THE QUESTIONS THAT TURN
ANSWERED. TURN ASKED, THEY SAID
, DON'T ALLOW IT TO BE A SLUSH
FUND. AND PG AND E ISN'T ALLOWED
TO HAVE FLUSH FUNDS EXCEPT
THROUGH, UH, STOCKHOLDER MONEY.
SO IT IS VERY CLEAR. THAT THE
PUBLIC WILL DECIDE WHERE THIS
MONEY GOES, WHERE THERE'S
SEVERAL BILLION DOLLARS OR
WHATEVER THE NUMBER IS. WHERE IT
GOES. THAT'S VERY CLEAR, SO NO
ADDITIONAL PROFIT BEYOND WHAT
THEY'RE GETTING NOW. AND THE
DECISION BY THE CPUC THROUGH A
PROCESS AS TO HOW THE MONEY IS
SPENT. DOCTOR QUIRKE. THE ONLY
THING I'D HIGHLIGHT IS TODAY
THEY ARE ABLE TO EARN OUR RETURN
ON EQUITY. UM AND YOU KNOW, NOT
GOING FORWARD BASIS. THE RETURN
ON EQUITY WOULD NOT BE ALLOWED.
THE LEGISLATION ALSO WOULD BE
CLEAR AROUND THE CATEGORY
SUSPENDING THAT WOULD BE ALLOWED
. SO IT'S A NARROWER SCOPE OF AH
OF SPENDING AREAS THAT ARE
ALLOWED UNDER THIS ELEMENT, AND
AS YOU MENTIONED THE EXPENDITURE
ITSELF, THE OVERALL PLAN IS
SOMETHING THAT WOULD BE REVIEWED
BY THE CPUC. OKAY, SO THERE'S NO
RETURN ON EQUITY. THAT MEAN
THEY'RE ACTUALLY EARNING LESS
THAN THEY WOULD HAVE. UH THERE'S
A MANAGEMENTFEE THAT THEY HAVE
LESS RETURN ON EQUITY. THE
REVENUES ARE THE REVENUES, THEN
GO FOR A DEDICATED PURPOSE. SO
IF WE KIND OF COMPARED TO DAY TO
THIS ON A GOING FORWARD BASIS,
THIS IS MORE RESTRICTIVE IN
TERMS OF USE OF PROCEEDS, UM,
AND, UH, AND DOES NOT INCLUDE
ANY RETURN ON EQUITY COMPONENT
OR DOLLARS FOR SHAREHOLDERS.
THANK YOU. UM. ALRIGHT IN TERMS
OF WHETHER DEMAND IS GOING UP OR
DOWN. I DON'T PARTICULARLY CARE
OF THE ANSWER WHAT I CARE ABOUT
IS WHAT IS THE CRITICAL PATH?
WHAT IS THE WORST CASE SCENARIO?
AND HOW DO WE KEEP THE LIGHTS
ON? AND THAT'S WHAT HAPPENED
LAST SUMMER WHEN WE HAD A VERY,
VERY HOT SUMMER. AND THE I S 00
IS THE PREMIER MODELING AGENCY
PERIOD. AND THEY'VE SHOWN US
WHAT CAN HAPPEN UNDER WHAT
THEY'RE CALLING A WORST CASE
SCENARIO. WHICH I'M WILLING TO
BET COULD BE EVEN WORSE. SO UM,
I THINK ALL OF MY UH OH. LAST
POINT OFFSHORE WIND. DOES THIS
IN ANY WAY IMPACT OFFSHORE WIND
DEVELOPMENT? NO THERE'S PLENTY
OF THERE'S ANOTHER. THERE'S
SUFFICIENT ROOM TO BE ABLE TO
ACCOMMODATE THE ESTIMATED AMOUNT
OF OFFSHORE WIND THAT CAN COME
ONLINE BY 2030 AND AN EXTENSION.
ALRIGHT. SO THEN IN SUMMARY PG
AND E IS MAKING ABOUT WHAT IT
WOULD HAVE MADE. I S O SAYS WE
NEEDED TO KEEP THE LIGHTS ON. UM. WE ARE GOING TO CONTINUE AND
IN FACT ACCELERATE AS BEST WE
CAN. THE PROCUREMENT OF
RENEWABLE ENERGIES AND
TRANSMISSION AND A LOT MORE
NEEDS TO BE DONE TO MAKE SURE
THAT WE PARTICULARLY GET THAT
TRANSMISSION. SO THANK YOU VERY
MUCH. THANK YOU, MR QUIRK. WE
ARE GOING TO GO TO THE PUBLIC
COMMENT, UH, SECTION NOW I WANT
TO THANK ALL THE PANELISTS FOR
TAKING THE TIME IN SUCH A SHORT
ORDERS TO BE WITH US TO VET THIS
VERY IMPORTANT PROPOSAL. THAT'S
BEFORE US. THANK YOU AGAIN.
PUBLIC COMMENT WILL BE
RESTRICTED TO ONE MINUTE PER
PERSON. WE WANT TO JUST LET YOU
KNOW THAT IF YOU ARE HERE AND
DON'T WANT TO SPEAK WITH IN THAT
ONE MINUTE, YOU CAN ACTUALLY
SEND YOUR COMMENTS TO THE
WEBSITE HOMEPAGE OF THE
COMMITTEE. YOU DON'T HAVE TO USE
THE WHOLE ONE MINUTE, PLEASE. UH
CONSIDER THAT AS WELL AND WE'LL
BEGIN. THANK YOU. STATE YOUR
NAME ORGANIZATION. YOU REPRESENT
MEMBERS, MATTHEW MARCUS WITH THE
PUBLIC ADVOCATE'S OFFICE. WE ARE
THE CONSUMER ADVOCATE AT THE
CALIFORNIA PUBLIC UTILITIES
COMMISSION. AND WE SUPPORT THE
RAPE HER PROTECTIONS IN THIS
PROPOSAL BEING DISCUSSED HERE
TODAY. THEY WOULD CREATE BOTH
STATUTORY AND ADMINISTRATIVE
PROCESS, CHECKS AND BALANCES.
SPECIFICALLY THE PROPOSAL WOULD
PROTECT REPAIRS BY ONE
FORMALIZING RELIABILITY,
PLANNING IMPROVEMENTS TO SHARING
SYSTEM COSTS AMONG A WIDER
CUSTOMER BASE. THREE
ESTABLISHING KEY EXTENSION AND
RETIREMENT DATES AND FOUR AND
PROBABLY THE MOST IMPORTANT BY
PROVIDING THE CPUC WITH
DISCRETION TO ACT ON FUTURE
CRITICAL DECISIONS. THIS
INCLUDES OFF RAMPS OF CRITICAL
FOR FEDERAL SUBSIDIES DO NOT
MATERIALIZE. WE LOOK FORWARD TO
WORKING WITH DECISION MAKERS. TO
ENSURE REPAIRS ARE PROTECTED AS
WE ACHIEVE OUR CLIMATE GOALS IN
THE MOST COST EFFECTIVE WAYS.
THANK YOU. GOOD AFTERNOON, MR
CHAIR AND MEMBERS ELENA ORTIZ ON
BEHALF OF NRDC ACTION FUND, AS
ASSEMBLYMEMBER'S TEAM NOTED, AND
AS WE SPOKE TO YESTERDAY, THERE
ARE NO PUBLISHED REPORTS BY ANY
OF THE STATES. ENERGY REGULATORY
AGENCIES RECOMMENDING A DIABLO
CANYON LIFE EXTENSION OR
COMPARING IT WITH THE COSTS AND
AVAILABILITY OF ALTERNATIVES.
THERE IS NO PUBLISHED ASSESSMENT
BY DIABLO CANYON OWNER OR ANY
OTHER CALIFORNIA UTILITY OR
COMMUNITY CHOICE AGGREGATOR,
PROVIDING A RATIONALE FOR LIFE.
EXTENSION. THERE IS NO
INFORMATION ABOUT HOW MUCH THIS
EXTENSION WOULD COST OR WHO WILL
PAY, WHICH HAS BEEN DISCUSSED
TODAY, ALTHOUGH IT'S OBVIOUS
FROM THE PROPOSED LEGISLATION
THAT WE'RE TALKING ABOUT
BILLIONS OF DOLLARS IN OPERATING
AND REFURBISHMENT COSTS. IN
ADDITION, WE OPPOSE THE BROAD
SECRET EXEMPTIONS AND THE FACT
THAT THE PROPOSEDLANGUAGE
OVERRIDES THE COASTAL ACT, THE
FEDERAL COASTAL ZONE MANAGEMENT
ACT AND THE COASTAL COMMISSION'S
JURISDICTION. WE ASK THAT YOU
REJECT THIS PROPOSAL AND STAND
BY THE RETIREMENT AND
REPLACEMENT AGREEMENT THAT YOU
RATIFIED ALMOST UNANIMOUS
UNANIMOUSLY FOUR YEARS AGO. AND
SENATE BILL 10 90 BY SENATOR
MONNING. THANK YOU. THANK YOU.
NEXT, PLEASE. ME. THERE WE GO.
THANK YOU. MY NAME IS LAURA DE
KH. I'M THE STATE DIRECTOR FOR
ENVIRONMENT, CALIFORNIA WE ALSO
STAND OPPOSED TO THE PROPOSED
EXTENSION OF THE DIABLO CANYON
NUCLEAR PLANT. YOU KNOW, WE'VE
IT'S BEEN PLANNED FOR THIS
CLOSED DOWN FOR NOW, SIX YEARS,
SO THERE'S ALREADY BEEN MONEY,
TIME AND ENERGY THAT'S GONE INTO
CLOSING IT DOWN. AND THERE'S
REAL PROBLEMS THAT HAVE THAT LED
TO THE DECISION TO CLOSE IT DOWN
SIX YEARS AGO. WE STILL HAVE NO
SOLUTION TO THE NUCLEAR WASTE
THAT IS PRODUCED. EXTENDING THE
TIME OUT IS GOING TO MEAN MORE
MORE OF THAT. UM AND THE SPENT
FUEL POOL IS ALREADY PACKED. UM
WE KNOW THAT 2.5 BILLION GALLONS
OF SEAWATER IS FLUSHED DIRECTLY
INTO THE COURSE LANE. KILLING
MILLIONS OF BIRDS AND FISH AND
OTHER WILDLIFE. UM AND THE NEW
PROPOSAL TAKES THE EXTREME,
UNPRECEDENTED STEP OF
ELIMINATING ENVIRONMENTAL REVIEW
, EVEN THOUGH WE KNOW THAT THERE
ARE SEVERE IMPACTS. AND THE
OTHER THING I WANTED TO
HIGHLIGHT IS THAT SINCE THE
ADMINISTRATION MADE THIS
PROPOSAL, THERE WAS A BIG
CHANGE, WHICH IS THE PASSAGE OF
THE CLIMATE BILL IN CONGRESS.
THE INFLATION REDUCTION ACT HAD
SEVERAL WHAT PEOPLE WERE CALLING
GAME CHANGERS WHEN IT COMES TO
CLEAN ENERGY PRODUCTION, THE
DEFENSE PRODUCTION ACT GETTING
INITIATED SO THAT WE COULD GET
HEAT PUMPS NANDA. OTHER ENERGY
EFFICIENCY MEASURES MUCH, MUCH
FASTER. AND THE GOVERNOR AND THE
CEO HAVE ADOPTED A REALLY
AMBITIOUS OFFSHORE WIND GOAL,
WHICH WE DIDN'T HAVE ALSO WHEN
THAT PLAN WAS PUT IN PLACE, SO
WE'RE NOW ON TRACK FOR FIVE
GIGAWATTS. WE'RE HOPING BY 2030
, AND WE REALLY THINK THAT IT
MAKES MUCH MORE SENSE FOR US TO
BE USING OUR LIMITED RESOURCES
AND TIME AND ENERGY. IN HELPING
TO BUILD THAT CLEAN ENERGY
FUTURE AND TAKE ADVANTAGE OF
THESE NEW RESOURCES RATHER THAN
THROWING GOOD MONEY AFTER BAD
WITH ALL OF THESE PROBLEMS WITH
THE DIABLO PLANT, THANK YOU.
THANK YOU NEXT. SPEAKER. THANK
YOU. MEMBER WOULD MR CHAIR AND
MEMBERS OF THE COMMITTEE WHO ARE
HERE? JEREMY SMITH, ON BEHALF OF
THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL AND
SUPPORT OF THE PLAN TO KEEP
DIABLO OPEN THAT HAS BEEN
DISCUSSED TODAY. NOT ONLY AS YOU
HEARD AS A POWER PLANT SUPPORT
HUNDREDS OF BUILDING TRADES
JOBS. UH BUILDING TRADES MEMBERS
JOBS IN THEIR FAMILIES, BUT IT
SUPPORTS THE WAY OF LIFE FOR
THOUSANDS OF OUR MEMBERS ALL
OVER THE STATE. THE IMPORTANCE
OF THE POWER PLANTS ARE THE
POWER PLANT TO OUR STATE'S
ENERGY NEEDS CANNOT BE
OVERSTATED, ESPECIALLY WITH
CONTINUED BLACKOUT. AND BROWNOUT
WORRIES AND OUR MEMBERS AND
THEIR FAMILIES RELY ON IT. THE
BUILDING TRADES IN OUR LOCAL
COUNCILS UP AND DOWN THE STATE.
ARE ENGAGED WHEREVER NEW POWER
PROJECTS ARE CONTEMPLATED. WE
ALREADY BUILD GEOTHERMAL PUMP,
STORED SOLAR AND WIND PROJECTS
AND STAND READY TO BUILD MORE OF
THESE. ANY AND ANY OTHER TYPES
OF ENERGY CONTEMPLATED. WE ARE
UNFORTUNATELY STYMIED. OFTEN ON
THESE PROJECTS BY NIMBYS AND
OTHER INTERESTED PARTIES AND
BELIEVE THAT IS PART OF THE
REASON WE ARE ALL HERE TODAY.
WE'RE IN SUPPORT OF THE APPLE
STAYING OPEN WHILE WE ALL WORK
ON FINDING NEW SOURCES OF CLEAN
ENERGY TO REPLACE OR AUGMENT
WHAT IT SUPPLIES THANKS FOR
HOLDING A HEARING. THANK YOU.
NEXT SPEAKER, PLEASE. GOOD
AFTERNOON, ALEX JACKSON WITH THE
AMERICAN CLEAN POWER ASSOCIATION
. WE ARE RENEWABLE ENERGY TRADE
GROUP MULTI TECHNOLOGY. WE'RE
HERE WITH ONE SIMPLE MESSAGE,
AND THAT'S TO UNDERSCORE WHAT
MANY OF THE PANELISTS AND
MEMBERS OF THE DIOCESE
EMPHASIZED TODAY THAT REGARDLESS
OF HOW YOU CHOOSE TO ADJUDICATE
THE QUESTION OF DIABLO CANYON
THERE IS NO QUESTION WE NEED TO
ACCELERATE OUR ACTIONS TO BUILD
OUT THE RENEWABLE FUTURE THAT
WE'RE ALL GOING FOR. IF WE HAD
HOPED TO AVOID LANDING OURSELVES
IN THE SAME SITUATION FIVE YEARS
HENCE, WE REALLY NEED TO MAKE
SURE WE'RE ACTING WITH
COMMENSURATE AMOUNT OF URGENCY,
INTENTIONALITY BECAUSE THE
RENEWABLES ARE NOT INEVITABLE AS
WE HEARD THERE'S REAL
BOTTLENECKS RIGHT NOW, WITH
TRANSMISSION. PERMITTING, AND
CITING AND WITH ALLOWING OUR
PLANNING PROCESSES TO
ACCOMMODATE CERTAIN RESOURCES
THAT LOOK A LITTLE BIT
DIFFERENT. IN TERMS OF THEIR
PLANNING HORIZON. THERE CAN ONLY
BE BUILT CERTAIN LOCATIONS. ALL
OF THESE THINGS NEED TO HAPPEN
NOW. SO OUR MESSAGE IS JUST WE
HAVE TO BE ASSURING THAT WE'RE
TAKING THESE STEPS, COINCIDENT
WITH ANY ACTION THAT HAPPENS ON
DIABLO. WE CAN'T LOSE OUR FOCUS
ON WHERE WE WANT TO GO A LONG
TERM. THANK YOU. THANK YOU NEXT
SPEAKER. GOOD AFTERNOON, CASSIE
GILSON WITH AXIOM ADVISORS HERE
ON BEHALF OF THE CLEAN AIR TASK
FORCE AND CARBON FREE CALIFORNIA
IN STRONG SUPPORT OF EXTENDING
DIABLO CANYONS, OPERATING
LICENSE AND ENSURING THAT CARBON
FREE POWER THAT IT PROVIDES BUT
ALSO WOULD ECHO MR JACKSON'S
COMMENTS IN STRONG SUPPORT OF
MAKING ADDITIONAL AND CONTINUING
ONGOING SUBSTANTIAL INVESTMENTS.
IN OFFSHORE WINDS, SOLAR DEMAND
RESPONSE AND OTHER CLEAN POWER
TO ENSURE OUR RELIABILITY AND
CARBON FREE FUTURE HERE AS WELL
. AND THEN HERE, ALSO ON BEHALF
OF THE CALIFORNIA BUILDING
INDUSTRY ASSOCIATION AND STRONG
SUPPORT OF KEEPING DIABLO GOING
, UM, THAT RELIABLE POWER IS
CRITICAL TO THE BUILDING
INDUSTRY SUPPLY CHAIN AND THEIR
ABILITY TO CONTINUE CONSTRUCTION
TO BUILD THE HOUSING WE ALL KNOW
IS NECESSARY TO ADDRESS OUR
HOUSING CRISIS. THANK YOU. THANK
YOU. NEXT SPEAKER, PLEASE. HELLO
AMBER, SAY HOW WOULD THREATEN
PRICE CONSULTING ON BEHALF OF
THE CLIMATE CENTER? WE
RESPECTFULLY SUGGEST THAT IF
TAXPAYERS ARE GOING TO SPEND 1.4
BILLION, IT WOULD BE MUCH WISER
TO SPEND THAT ON LOCAL CLEAN
ENERGY. HERE ARE TWO SPECIFIC
SUGGESTIONS FOR HOW TO DO THAT.
ONE CREATE FINANCIAL INCENTIVES
TO HARNESS CALIFORNIA'S EXISTING
MASSIVE FLEET OF DISTRIBUTED
ENERGY RESOURCES 20 YEARS AGO
WITH LEADERSHIP FROM THE
GOVERNOR, IT WAS POSSIBLE TO
COME UP WITH ALMOST FIVE
GIGAWATTS, MORE THAN TWICE THE
CAPACITY OF DIABLO CANYON. THAT
WAS LONG BEFORE WE HAD A MILLION
SOLAR ROOFS AND A MILLION
ELECTRIC VEHICLES.
IMPLEMENTATION OF THIS VERY
SIMPLE IDEA IS ALREADY UNDERWAY
AS PART OF THE CPU SEES NEW
DEMAND FLEXIBILITY PROCEEDING.
WHICH JUST STARTED LAST MONTH.
AND TO CREATE A NEW STATE POLICY
TO HARNESS FOR SYSTEM WIDE GRID
BENEFIT ALL THE NEW DISTRIBUTED
ENERGY RESOURCES, WHICH WILL
COME ONLINE IN RESPONSE TO
MASSIVE NEW FEDERAL AND STATE
INVESTMENTS IN LOCAL CLEAN
ENERGY. JUST THIS MORNING, THE
CEO ANNOUNCED AN UPCOMING
WORKSHOP TO DISCUSS HOW TO
UTILIZE PUBLICLY FUNDED ELECTRIC
SCHOOL BUSSES AS GRID ASSETS.
THIS IS A GREAT IDEA AND IDEA
WHICH COULD BE APPLIED TO ALL
NEW STATE INVESTMENTS IN CLEAN
DISTRIBUTED ENERGY. THE
SUGGESTIONS WOULD BE A MUCH MORE
EFFECTIVE USE OF THE 1.4 BILLION
IN STATE FUNDS BECAUSE IT WOULD
HARNESS CALIFORNIA'S LARGE AND
RAPIDLY GROWING FLEET OF CLEAN
DRS TO ENHANCE GRID RELIABILITY.
THANK YOU. THANK YOU. NEXT,
PLEASE. GOOD AFTERNOON. MY NAME
IS AMELIA TIMON AND I'M, A SAN
MATEO COUNTY RESIDENT. AND A
GRADUATE STUDENT AT UC DAVIS. MY
FAMILY ARE LONG TIME RESIDENTS
WHO HAVE 50 SOLAR PANELS ON OUR
ROOF THAT STILL DON'T COVER
ENERGY USE. WE WANT CLEAN ENERGY
DELIVERED TO OUR HOME. THAT'S
NOT 50% NATURAL GAS. CHEAP
NATURAL GAS AND SUBSIDIZED
RENEWABLES HAVE MADE IT HARDER
FOR NUCLEAR PLANTS TO SAY
PROFITABLE IN THE LONG RUN
NUCLEAR PLANTS LAST MANY DECADES
AND PROVIDE LARGE AMOUNTS OF
HIGHLY RELIABLE ELECTRICITY.
WHENEVER A NUCLEAR PLANT HAS
CLOSED EMISSIONS IN THAT AREA
HAVE INCREASED AIR QUALITY HAS
DECLINED AND FOSSIL FUEL USED
HAS INCREASED IN ORDER TO KEEP
THE LIGHTS ON. DOUBLE KENYAN
PROVIDES 8.6% OF CALIFORNIA'S UH
, ELECTRICITY AND NEARLY A
QUARTER OF ITS CLEAN
ELECTRICITY. ACCORDING TO
STANFORD AND MIT, REALLY
DELAYING THE PLANTS REQUIREMENT
TO 2035 WOULD CUT CARBON
EMISSIONS FROM ELECTRICITY. BY
11% PER YEAR FROM 2017 LEVELS
AND SAVE $2.6 BILLION. IT WOULD
SAVE AS MUCH AS $21 BILLION IF
THE PLANT STAYED OPEN UNTIL 2045
I ASK THAT YOU EXTEND THE LIFE
OF DIABLO CANYON AND NOT
BACKPEDAL IN OUR STATE GOALS FOR
100% CLEAN ENERGY BY 2045. THANK
YOU. THANK YOU. HELLO DOCTOR
WOULD LARA GREG? THANKS FOR
LISTENING AND THE BUS HERE.
BETHEL ASO ON BEHALF OF THE
AGRICULTURAL ENERGY CONSUMERS
ASSOCIATION. UM WE ARE
INCREDIBLY SUPPORTIVE OF
EXTENDING DIABLO JUST CONCERNED
ABOUT THE COST TO REPAY EAR'S MR
STREIB INDICATED THAT THERE WERE
ON AVERAGE THERE WOULD BE, YOU
KNOW, VERY MINIMAL OR EVEN NO
INCREASE TO RATEPAYERS. BUT THE
PROBLEM WITH THAT IS AS THIS
PROPOSAL STATES IT'S A
VOLUMETRIC CHARGE ON RATEPAYERS.
SO YOU HAVE HIGH ENERGY USERS OR
FOLKS WHO ARE INLAND AND HOTTER
COMMUNITIES. AGRICULTURAL
PROCESSORS CORE THEY'RE GOING TO
BE SUBSIDIZING COASTAL CUSTOMERS
WHO DON'T NEED DON'T USE AS MUCH
ELECTRICITY. UM YOU KNOW AGAIN,
THEY DON'T USE ELECTRICITY, SO
IT MAKES SENSE THAT THEY
SHOULDN'T HAVE TO PAY RATES. BUT
WE'RE PAYING FOR THE RELIABILITY
AND EVERYBODY SHOULD HAVE TO
CONTRIBUTE TO THAT RELIABILITY,
SO I THINK WE'RE REALLY
INTERESTED IN A MORE NUANCED, UM
, PERSPECTIVE OF WHERE THE RATE
INCREASES MIGHT BE. BECAUSE WE
REALLY DO THINK THAT
AGRICULTURAL PROCESSORS ARE
REALLY GOING TO BE HIT
EXTENSIVELY, SO WOULD LIKE TO
SEE THAT AND WOULD REALLY
APPRECIATE YOUR CONSIDERATION OF
THAT. AS YOU'RE TWEAKING THIS IN
THE COMING DAYS. THANKS SO MUCH.
THANK YOU. THANK YOU VERY MUCH.
IS THERE ANYONE ELSE WHO WOULD
LIKE TO MAKE COMMENTS? I JUST
WANT TO SAY THANK YOU TO ALL OF
OUR PANELISTS MEMBERS WHO WERE
HERE. UM AND, UH AND EVERYBODY
WHO SPOKE EITHER IN SUPPORTER
OPPOSITION TO THE PROPOSAL IS
BEFORE US APPRECIATE EVERYBODY
TAKING THE TIME TO BE HERE WITH
US TODAY. I WAS KIND OF THE LAST
PERSON STANDING, SO I DON'T I
DON'T EVEN SIT ON THIS
COMMITTEE. BUT NOW I FIND MYSELF
WITH THE GAVEL, WHICH IS A
REALLY SCARY THING, BUT WITH
THAT, I THINK I'LL DO THE SAFE
THING AND I WILL JOIN THE
HEARING. THANK YOU.