BEAR, Berkeley Economic Advising and Research

ProjectsPG&E

PG&E: what Diablo Canyon’s extended operation is worth to the region

An economic impact assessment of keeping the Diablo Canyon nuclear plant running through 2030, for Pacific Gas and Electric Company. San Luis Obispo County hosts the summary, which BEAR presented at the County’s public information session on the plant’s future in July 2026.

Pacific Gas and Electric CompanyDiablo Canyon Extended Operations: Economic Impact Assessment, summaryCounty of San Luis Obispo, July 30, 2026Open the public record

The question

What does continued operation of Diablo Canyon contribute to the San Luis Obispo, Santa Barbara and California economies, and does it move local home values or the County’s borrowing costs?

What BEAR found

$901.3MAnnual contribution to California gross state product
3,785Full-time-equivalent jobs statewide
1,567Jobs in San Luis Obispo County, with $420.2 million in value added

Statewide, the plant supports $901.3 million a year in gross state product and 3,785 full-time-equivalent jobs, including $420.2 million of value added and 1,567 jobs in San Luis Obispo County and $43.9 million and 209 jobs in Santa Barbara County.

The 2022 decision to extend operations had no lasting effect on local home values. After the 2016 closure announcement, by contrast, the spread on San Luis Obispo County’s municipal bonds rose 26 basis points.

Method

Input-output analysis on 2023 IMPLAN data across 528 sectors for San Luis Obispo County, Santa Barbara County and California, with difference-in-differences event studies of home values and municipal bond trades, and a ZIP-level panel of salaries.

Public record

How to cite

Berkeley Economic Advising and Research (BEAR) (2026). Diablo Canyon Extended Operations: Economic Impact Assessment. Summary of the report prepared for Pacific Gas and Electric Company, July 30, 2026. Hosted by the County of San Luis Obispo.

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