Ava Nuclear Allocation Explained

In 2022, the State Legislature and Governor’s office voted to extend operations of PG&E’s Diablo Canyon Nuclear Power Plant until 2029/2030. All PG&E customers, including Ava customers, pay mandatory fees that support the operation of this power plant. In return for those mandatory fees, Ava is offered a free allocation of nuclear attributes. The Ava Board of Directors voted to accept that allocation of greenhouse gas-free (GHG-free) power attributes at the September 18, 2024 board meeting. The Board further directed Ava to use the nuclear allocation to reduce the amount of purchased unspecified power from 19% to 9%, lowering Ava’s overall carbon intensity in 2025.

We remain committed to renewable power and our 2030 goal of 100% carbon-free power. In that light, the Board carefully considered the impacts of this decision. This allocation supports Ava’s commitment to providing you with cost-effective electricity and accelerating the reduction of GHG emissions.

On Wednesday, September 18, the Ava Community Energy Board of Directors voted to accept its no-cost allocation of GHG-free nuclear energy attributes.

The decision to accept the nuclear allocation is:

This nuclear allocation is not:

There were a number of reasons discussed at our board meeting, but the primary reasons were the need for carbon-free power and general affordability. Ava customers already fund the operations of Diablo Canyon through mandatory PG&E fees. Accepting the free allocation helps us reduce emissions more quickly at no extra cost.

In past years, Ava (and other CCAs) were offered an allocation from PG&E-owned energy generation resources because Ava customers pay fees to PG&E that support the operations of those resources. In previous years, the Ava Board chose not to accept the allocation.

We understand that this decision is one that some of our customers feel strongly about. Because we are a public agency that is governed by a board of officials who were each elected to represent the interests of their community, bringing the nuclear allocation question to a public vote helps us remain transparent and responsive to our communities at large.

Accepting this allocation helps Ava deliver on its commitment to provide competitively priced clean energy to all customers. In addition to accepting the nuclear allocation, the board directed Ava to use the allocation to reduce the amount of purchased unspecified power from 19% to 9%, lowering Ava’s overall carbon intensity in 2025.

The decision to accept the nuclear allocation has no bearing on the lifespan or operations of the Diablo Canyon plant. If Ava had not accepted this year’s allocation, the power would still have been generated and deployed. In December 2023, the California Public Utilities Commission approved a proposal to keep Diablo Canyon’s twin reactors online through 2030.

The nuclear allocation will be assigned to our Bright Choice product, which is currently offered at a 5% discount to PG&E generation rates. Ava also offers Renewable 100, which is 100% solar and wind power and costs an additional ¼ of a penny per kWh above PG&E generation rates. Alternatively, you can opt out of Ava Community Energy and select PG&E power, which currently has 53% nuclear power content. Learn more about your energy options and make your choice on our Plans & Rates page.

^{Diablo Canyon image source: Tracey Adams, Flickr.}