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SLO County Seeks Local Support for Diablo Canyon Extension
County drafts letter asking cities to back 20-year operation extension and restore unitary tax revenue.
Jan. 28, 2026 at 8:39pm
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San Luis Obispo County is seeking support from local cities to back a 20-year extension of operations at the Diablo Canyon Power Plant, before taking the request to the California legislature. The county has drafted a letter supporting the extension and asking to restore a previous unitary tax that was in place before the plant began decommissioning.
Why it matters
Diablo Canyon provides around 9% of California's total power generation, and the unitary tax revenue it generates is an important source of funding for the county and local cities. An extension of the plant's operations could help maintain this critical energy source and tax revenue stream.
The details
The California Coastal Commission recently approved extended operations at Diablo Canyon, finding it 'safe and environmentally sound to operate for another 20 years.' The county's letter asks local cities to sign in support of the extension and the restoration of the unitary tax, which was worth around $21 million annually for the county before decommissioning began. Morro Bay City Council has already passed the resolution without discussion, recognizing the importance of the unitary tax revenue to the city's budget.
- In December 2025, the California Coastal Commission approved extended operations at Diablo Canyon.
- Diablo Canyon is currently approved to operate until 2030.
The players
San Luis Obispo County
The county is seeking support from local cities to back a 20-year extension of operations at the Diablo Canyon Power Plant.
Diablo Canyon Power Plant
A nuclear power plant that provides around 9% of California's total power generation.
Bruce Gibson
San Luis Obispo County District 2 Supervisor.
Morro Bay City Council
The city council has passed a resolution supporting the county's efforts to get the unitary tax included and the extension for the power plant.
John Craig
Morro Bay City Manager.
What they’re saying
“So really what we're talking about right now is what needs to happen between now and 2030 should Diablo get all the approvals necessary to extend its operation.”
— Bruce Gibson, San Luis Obispo County District 2 Supervisor
“Looking for other outlets or other places that we can increase revenues where we can provide services for our citizens and visitors. And so I think the unitary tax and restoring that back to decommissioning levels is something that's really important for the City of Morro Bay.”
— John Craig, Morro Bay City Manager
What’s next
The county will now take its request for a 20-year extension and unitary tax restoration to the California legislature for approval.
The takeaway
Diablo Canyon's continued operation is crucial for California's energy supply and the local economy, with the unitary tax revenue it generates being an important source of funding for San Luis Obispo County and its cities. The county's efforts to secure an extension and restore this tax revenue stream demonstrate the high stakes involved in the plant's future.
