Nuclear operators and regulators are continuing to pay close attention to the events that have occurred at the

Fukushima nuclear facility in Japan. PG&E remains committed to operating safely and maintaining the trust and confidence of its communities and customers. TheU.S. nuclear industry operates under some of the most rigorous regulatory requirements of any industry in the country. All nuclear plants in America are designed to withstand the most severe earthquakes and flooding that may plausibly occur at their location, based on historical records and exacting geologic assessments. As the only utility in the country with a dedicated seismic research department, PG&E has long made earthquake safetyalong with all other safety issuesa top priority. Diablo Canyon was designed and constructed with seismic safety in mind and components of thefacility were tested to withstand probable ground motions resulting from nearby faults. As part of PG&E's licenses to operate the plant, the utility has a Long Term Seismic Program which continually evaluates seismic issues and applies new information to help assure that the facility is seismically safe. PG&E continuously partners with the United States Geological Survey (USGS) to update the utility's understanding of earthquake hazards along the Central Coast and throughout the service area. Based on the latest available evidence, the Nuclear Regulatory Commission (NRC) has concluded that it is "highly unlikely that a similar combination of events such as those which occurred in Japan could occur in the United States, including at the Diablo Canyon (Power Plant)" and said it "does not believe the seismic hazards associated with the Diablo Canyon and San Onofre plants can be directly compared to the events at Fukushima." (Please see attachment for more information.) Nonetheless, PG&E is undertaking state-of-the-art 3D seismic studies in the area as part of its ongoing earthquake safety research. PG&E applied for funding for these studies prior to the events in Fukushima. As part of its approval, the California Public Utilities Commission (CPUC) determined the studies will be reviewed by an independent peer review panel. Under an agreement with the NRC, PG&E will finish these important studies before final action is taken on the license renewal application. Extending Diablo Canyons operating license will save PG&E's customers billions of dollars and provide reliable electricity needed to power the states economy. Diablo Canyon powers more than 3 million homes in California, contributes more than $640 million each year to the San Luis Obispo County economy and has operated safely for more than 25 years. For more specific information on the seismicity of the Diablo Canyon Power Plant area, please see the below link to the Shoreline Fault Zone Report. http://www.pge.com/myhome/edusafety/systemworks/dcpp/shorelinereport/