PCG - Biden proposes changes to help save California's Diablo Canyon nuclear plant

The Biden administration is proposing changes requested by California Governor Gavin Newsom that will allow the state's only remaining nuclear power plant - PG&E's (NYSE:PCG) Diablo Canyon - to qualify for federal financial assistance, Bloomberg reported on Friday. The Department of Energy is proposing the removal of a requirement that would have prevented the plant from obtaining a portion of $6B in funds the Biden administration is making available to rescue reactors at risk of closing early because they are losing money, according to Bloomberg. The DoE reportedly indicated it would eliminate a requirement that a nuclear reactor applying for funds not recover more than 50% of its costs from regulated rates or contracts; the costs of Diablo Canyon are recovered through bill charges to its customers. Newsom is reconsidering a state plan to retire Diablo Canyon in 2025 because of expected electricity shortages that could lead to blackouts.

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Biden proposes changes to help save California's Diablo Canyon nuclear plant