Lawmakers, regulators review Diablo Canyon extension, contingency plans and grid upgrades

SACRAMENTO — California senators and leaders of the state’s energy agencies met at a Senate oversight hearing to review the status of Senate Bill 846 implementation, Diablo Canyon Power Plant operations and the state’s progress on electricity reliability and affordability as extreme weather and growing demand reshape planning.

The hearing, convened by the Senate Committee on Energy, Utilities and Communications, brought the California Energy Commission (CEC), California Public Utilities Commission (CPUC), Department of Water Resources (DWR), California Independent System Operator (CAISO) and PG&E before legislators to explain recent procurement, contingency reserves and where gaps remain as the state transitions to low‑carbon resources.

Why it matters: SB 846 authorized a five‑year extension of Diablo Canyon’s operating licenses and set reporting, mitigation and financing conditions intended to bridge near‑term reliability while the state scales clean resources. Lawmakers said they want assurance that contingencies and agency actions reduce the risk that taxpayers and ratepayers will shoulder unexpected costs or reliability shortfalls.

Agency officials said progress on clean resource procurement and battery storage has materially improved near‑term reliability since the rotating outages of August 2020, but they also flagged remaining risks tied to rare, extreme events and to the completion of outstanding implementation steps from SB 846.

“It's been 5 years since California experienced unexpected rotating outages in August 2020,” said Senator Roger W. (Becker), chair of the committee, opening the hearing and framing the panel’s focus on “grow, share and shift” — build more resources, share across larger markets and shift demand through flexibility.

What officials reported - Resource additions: The agencies said recent procurement and interconnection activity has driven large new buildouts of solar and battery storage. Officials cited a record year with nearly 7,000 megawatts of new renewable and zero‑carbon resources in one year and more than 12,000 megawatts of storage nameplate capacity added since 2020. The CPUC told the committee it has issued procurement orders totaling about 18.8 gigawatts of new capacity to meet expected needs without relying on fossil‑fuel procurement. - Operating outlook for 2025: CAISO and agency leaders described 2025 as “cautiously optimistic.” CAISO President Elliot Mainzer summarized…