![]() (Nuclear plants are used for base load in order to spread their large fixed costs over as many kWh of generation as possible.) In 2020, experts at the California Independent System Operator (CAISO) warned that when the plant closes the state will reach a "critical inflection point", which will create a significant challenge to ensure reliability of the grid without resorting to more fossil fuel usage, and could jeopardize California's greenhouse gas reduction targets. In 2016, PG&E announced that it plans to close the two Diablo Canyon reactors in 20, stating that because California's energy regulations give renewables priority over nuclear, the plant would likely only run half-time, making it uneconomical. The plant is located in Nuclear Regulatory Commission Region IV. Though it was built less than a mile from the Shoreline fault line, which was not known to exist at the time of construction, and is located less than three miles (4.8 km) from the Hosgri fault, a 2016 NRC probabilistic risk assessment of the plant, taking into account seismic risk, estimated the frequency of core damage at one instance per 7.6 million reactor years. The plant produces electricity for about 6 cents per kWh, less than the average cost of 10.1 cents per kWh that PG&E paid for electricity from other suppliers in 2014.
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