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Michael Deakins's avatar

As an employee of Westinghouse Rotating Equipment Services, I am proud to support Diablo Canyon's maintenance program, supplying quality craftsmanship on their safety related motors.

Their position to stay open until 2045 is highly regarded and lauded.

I appreciate all the work you do Gene.

Ted Kurtz's avatar

The value of extending DCPP until at least 2045 would seem to be a "non-brainer" for California electric customers given the extremely high cost of electricity and dependence on non-dispatchable generation resources.

I lead the economic analysis of Palo Verde's 2nd license extension over the past 3 years. The economics, from a lower cost Arizona perspective, were tremendously compelling. The incremental capacity cost (overnight capital cost), were roughly 10% of a combined cycle. The average incremental LCOE over the 1st life extension (PV1 commencing in 2025) and proposed 2nd life extension (~2045 - 2065 for PV1) was in the high $50's/MWH. From a production cost perspective, it was very attractive for our Arizona customers. We always wondered how much more attractive it looked for Palo Verde's California participant owners.

Incremental DCPP energy costs of ~$33/MWH indicate to me a very cost-effective plant. If similar to Arizona, California electric customers are facing substantial electric rate increases for 3 to 5 years just based upon already approved generation investments. Maintaining DCPP as a low cost, reliable resource will assist in mitigating these future rate increases.

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