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PG&E To Run Diablo Canyon Nuclear Plant Another 20 Years



By Cassandra Sweet, Of DOW JONES NEWSWIRES

SAN FRANCISCO -(Dow Jones)- PG&E Corp. (PCG) officials said Tuesday the utility plans to run its Diablo Canyon nuclear power plant another 20 years, to take advantage of the plant's relatively low-cost, emission-free power.

The 2,200-megawatt nuclear plant, in San Luis Obispo, Calif., provides about one-fifth of the power PG&E provides to its customers, the utility said. The company has asked the U.S. Nuclear Regulatory Commission to extend the operating licenses for the plant's two units to 2044 and 2045, respectively, said PG&E Senior Vice President John Conway.

"It's absolutely critical to retain this baseload generation," Conway said. He added that nuclear power, which doesn't generate greenhouse-gas emissions, is an increasingly important resource in California, where energy and other companies will be required to cut their emissions under the state's 2006 plan to combat climate change.

PG&E has committed about $1 billion towards improvements at Diablo Canyon, including replacing the plant's steam generators and reactor vessels, he said.

The NRC has renewed the operating licenses of other U.S. nuclear power plants and is likely to approve those for Diablo Canyon, through a process that could take two to four years, said PG&E Vice President Jim Becker.

Former Greenpeace member and environmental policy consultant Patrick Moore said nuclear power plants like Diablo Canyon and new power plants are important resources that will help the world cut greenhouse-gas emissions and fight climate change.

"Certainly it's impossible to (cut greenhouse gas emissions) with wind and solar alone," Moore said, speaking at a PG&E press conference in San Luis Obispo. "You're going to need to build new nuclear in California, like they're doing all over the world."

Proposed state rules that could require Diablo Canyon and 18 other California power plants to replace their water-cooling systems could potentially cost PG&E tens or even hundreds of millions of dollars to install new equipment. But Conway said it's too early to know to what extent the proposed rules would affect the plant, whether new equipment would be needed and if so, how much it would cost.

Shares of PG&E were recently trading 5 cents higher at $42.60.

-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468; cassandra.sweet@ dowjones.com


  (END) Dow Jones Newswires
  11-24-091530ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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