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California Taxpayers Gave PG&E a Huge Loan. Its Losses Are Already Mounting
The $1.4 billion loan aims to keep Diablo Canyon nuclear plant open with expected federal repayment, but as much as 42% may need to be forgiven, raising concerns about state financial exposure.
- Gov. Gavin Newsom's administration sought a $1.4 billion state loan to support Diablo Canyon, amid concerns about repayment and shortfalls.
- Proponents said the $1.4 billion loan would be repaid via the Civil Nuclear Credit program, which can only award $1.2 billion per cycle, potentially leaving a shortfall.
- CalMatters found the shortfall may need to forgive as much as $588 million, about 42% of the $1.4 billion loan, amid a shortfall in the state’s general fund.
- Amid these projections, PG&E doesn’t expect to have money to spare from the plant, and the company forecasts overspending the loan by about $588 million through next year, partly because the federal award could never cover the full sum.
- Under the loan agreement, deficits may be offset with plant profit in its final year, and the water department projects PG&E will receive about $540 million from spent nuclear fuel storage payments from 2026 to 2030.
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16 Articles
16 Articles
Press-Telegram+3 Reposted by 3 other sources
California taxpayers gave PG&E a huge loan. Its losses are already mounting
By Malena Carollo | CalMatters Two weeks before the 2022 legislative session ended, Gov. Gavin Newsom’s administration came to lawmakers with a big ask: authorize a $1.4 billion state loan to keep open California’s last nuclear power plant, Diablo Canyon. The money was supposed to be a stopgap that would be fully repaid by an expected federal award. There was even a fail-safe: if the award fell short, other federal funds or profits from Diablo C…
Cal Matters+8 Reposted by 8 other sources
California taxpayers gave PG&E a huge, supposedly safe loan. The losses are already mounting
Gov. Gavin Newsom said federal funds would cover a $1.4 billion loan to keep Diablo Canyon open. They could fall $588 million short.
·Sacramento, United States
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Coverage Details
Total News Sources16
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
Factuality
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