After CPUC Decision, PG&E to Confer With Diablo Canyon Joint Proposal Parties on Path Forward

SAN FRANCISCO–(BUSINESS WIRE)–Pacific Gas and Electric Company (PG&E) issued the following statement
today following the California Public Utilities Commission’s (CPUC)
approval of its revised proposed decision on the Diablo Canyon Power
Plant (DCPP) joint proposal:

“The DCPP joint proposal represented a significant milestone in the
planning to meet California’s ambitious clean energy vision. We
appreciate the CPUC’s thoughtful consideration of this complex issue and
its approval of certain elements.

“While we are disappointed that they did not approve the full employee
retention program, as well as the community impact mitigation and energy
efficiency programs, we are appreciative that the CPUC took the positive
step to increase the amount of funding for employee retention beyond
their original proposed decision.

“The joint proposal represents an array of interests from many parties
who joined together to promote the best path forward for our state and
PG&E’s customers. Since the full proposal was not approved, in line with
our agreement, PG&E will be meeting to confer with our labor, community
and environmental group partners in the days ahead about the decision,
our next steps and the path forward.”

About the Joint Proposal

California's energy landscape is changing dramatically. State policies
that focus on renewables and energy efficiency, coupled with projected
lower customer electricity demand in the future, will result in a
significant reduction in the need for the electricity produced by DCPP
past 2025.

Reflecting this change, PG&E partnered with labor and leading
environmental organizations in 2016 on a joint proposal that would
increase investment in energy efficiency and renewables while retiring
DCPP at the end of its current Nuclear Regulatory Commission (NRC)
operating licenses, which expire in 2024 and 2025.

The parties to the joint proposal include PG&E, International
Brotherhood of Electrical Workers Local 1245, Coalition of California
Utility Employees, Friends of the Earth, Natural Resources Defense
Council, Environment California, California Energy Efficiency Industry
Council and Alliance for Nuclear Responsibility.

Recognizing that the procurement, construction and implementation of a
GHG-free portfolio of energy efficiency and renewables would take time,
the joint parties agreed to support PG&E in obtaining the state
approvals needed to operate DCPP to the expiration of its current NRC
operating licenses.

This avoided an early shutdown of DCPP and associated negative economic
and social impacts, including replacing the plant's output required to
meet customer demand with non-greenhouse gas-free resources.

The joint proposal also provides support for a successful transition for
DCPP employees and the greater San Luis Obispo County community.

The $85 million community impact mitigation program would support the
community with its transition and provide funding to support essential
public services that the plant and the local community rely upon.

The DCPP employee program would provide incentives to retain employees
during the remaining operating years of the plant, and a retraining and
development program to facilitate redeployment of a portion of plant
personnel to the decommissioning project or other positions within the
company.

PG&E does not believe long-term customer rates would increase as a
result of the joint proposal.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric energy companies in the United States. Based in San
Francisco, with more than 20,000 employees, the company delivers some of
the nation’s cleanest energy to nearly 16 million people in Northern and
Central California. For more information, visit www.pge.com
and www.pge.com/en/about/newsroom/index.page.

Contacts

Pacific Gas and Electric Company
Media Relations, 415-973-5930