California governor proposes $1.4 billion loan to keep nuclear plant open

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California governor proposes $1.4 billion loan to keep nuclear plant open
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California Governor Gavin Newsom is proposing to give PG&E Corp a $1.4 billion government loan to extend the life of a nuclear power plant it runs by as much as a decade as the state seeks to shore up electric reliability while moving away from fossil fuels, his office said on Friday.

California Governor Gavin Newsom speaks in Los Angeles, California, U.S. June 9, 2022. REUTERS/Lucy Nicholsona $1.4 billion government loan to extend the life of a nuclear power plant it runs by as much as a decade as the state seeks to shore up electric reliability while moving away from fossil fuels, his office said on Friday.

California wants to produce all of its electricity from clean sources by 2045, but has faced challenges with that transition, such as rolling blackouts during a heatwave in 2020."The Governor supports keeping all options on the table as we build out our plan to ensure reliable energy this summer and beyond," a spokesperson in his office said.

The proposed bill would also authorize a loan of up to $1.4 billion to Diablo Canyon owner PG&E to cover relicensing costs Diablo Canyon's current federal licenses expire in 2024 and 2025.

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