California nuclear plant undergoing formal review

The California Public Utilities Commission is opening a formal investigation into San Onofre nuclear power plant closure.

The electric facility located near San Diego suspended operations back in January after a leak was discovered in one of its steam generators.

The San Onofre plant had been responsible for providing roughly 8% of the state’s electricity with no associated carbon emissions.

To make up for the lost energy generation, fossil fueled combusting power plants have had to increase their production, resulting in larger carbon emissions.

California’s carbon market goes into effect next year, with the first carbon allowance auction taking place on November 14.

The loss of such a large, carbon neutral energy resource will raise demand for allowances being sold at auction.

When it was discovered that the nuclear plant faced a lengthy shut down in July, California carbon allowances saw their prices jump to over $20 per tonne.