1 California Energy Commission April 27, 2015 Valerie Winn Chief, State Agency Relations Contingency Planning and Diablo Canyon Power Plant

22 Safe Clean Reliable

3 Key Plant Features Diablo Canyon Power Plant (DCPP) is a safe, clean, reliable and vital energy resource for California DCPP Units 1 and 2 produce a 18,000 GWh of carbon-free electricity annually -Nearly 10% of California’s electricity portfolio -20 to 22% of the power PG&E provides to customers For 30 years, DCPP has safely produced energy without emitting greenhouse gases -- Avoids 6 to 7 million tons per year of GHGs that would be emitted by conventional generation sources

4 Current Procurement Planning Processes Short-Term: - Market transactions through the day-ahead and real-time markets Mid-Term: -Market transactions -Bilateral contracting -Competitive solicitations Long-Term: - Long-Term Procurement Plan needs determination - Competitive solicitation or bilateral contracting to fill the need

5 Biennial proceeding established to ensure a safe, reliable and cost- effective electricity supply, specifically in the CAISO area Evaluation of various scenarios over 10 to 20 year time horizon Balances cost, reliability, and environmental impacts –State’s preferred resources (Loading Order) –State Policies for 33% RPS, GHG goals –Renewable integration needs –Replacement of once through cooling resources –Local reliability needs Frames choices for regulators and other stakeholders on impacts of various courses of action The CPUC: –Determines how much new generation can be built –Authorizes procurement of resources and products to meet need –Determines Capacity and GHG procurement limits Long Term Procurement Plan Via the LTPP, the CPUC determines and authorizes procurement of new resources to meet each IOU’s need

6 Recent CPUC Discussion on Contingency Planning From CPUC Decision , Rejecting Proposal to Review the Economics and Operations of DCPP: The Commission already has existing tools and recurring proceedings where PG&E’s operations of Diablo Canyon… are routinely examined..(p. 1) There are seismic studies…, the important greenhouse gas emission avoidance benefits provided by [DCPP], concern about possible periods of over-generation, and the remaining economic viability of Diablo Canyon, which may warrant a thoughtful investigation at the right time. (p. 5) We can only move forward responsibly when we have meaningful results. It would be premature now. (p. 8) The Commission is able to timely issue a rulemaking or investigation, addressing Diablo Canyon, on its own motion whenever it becomes warranted to do so. (COL 9) We need both a short-term and a long-term plan for dealing with the eventual absence of Diablo Canyon.” -- Commissioner Mike Florio during CPUC discussions on Decision

7 License Renewal for Diablo Canyon PG&E applied to renew the Diablo Canyon operating licenses as the facility is a valuable clean energy asset for our customers, our state, and a significant economic engine for the Central Coast. PG&E put the process on hold to carry out the AB 1632 seismic studies PG&E has a number of issues to consider as part of the license renewal process Feedback on the seismic studies State Water Resources Control Board once- through cooling compliance requirements California Coastal Commission consistency review

8 Questions Valerie Winn