IR 05000275/2007202

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Enclosure contains Safeguards Information. Upon removal, this letter is decontrolled. October 5, 2007Mr. John S. KeenanSenior Vice President and Chief Nuclear Officer Pacific Gas and Electric Company Mail Code B32 77 Beale Street San Francisco, CA 94105

SUBJECT: DIABLO CANYON NUCLEAR STATION - SECURITY INSPECTION05000275/2007202, 05000323/2007202

Dear Mr. Keenan,

On August 10, 2007, the U.S. Nuclear Regulatory Commission (NRC) completed a securitybaseline inspection at the Diablo Canyon Nuclear Station. The inspection covered one or more of the key attributes of the security cornerstone of the NRC's Reactor Oversight Process. The enclosed inspection report documents the inspection results, which were discussed on August 10, 2007, with Mrs. Donna Jacobs and other members of your staff.The inspection examined activities conducted under your license as they relate to security andcompliance with the Commission's rules and regulations and with the conditions of your license.

The inspectors reviewed selected procedures and records, observed activities, and interviewed personnel. No findings of significance were identified. In accordance with 10 CFR 2.390 of the NRC's "Rules of Practice," a copy of this letter will beavailable electronically for public inspection in the NRC Public Document Room or from the Publicly Available Records (PARS) component of NRC's document system, ADAMS. ADAMS is accessible from the NRC Website at http://www.nrc.gov/reading-rm/adams.html (the PublicElectronic Reading Room). However, because of the security-related concerns contained in theenclosure, and in accordance with 10 CFR 2.390, a copy of this letter's enclosure will not be available for public inspection. J. Keenan-2 Should you have any questions concerning this letter, please contact us. Your cooperation isappreciated.

Sincerely,/RA/Ronald J. Albert, ChiefSecurity Performance Evaluation Branch Security Oversight Division of Security Operations Office of Nuclear Security and Incident ResponseDocket Nos.: 50-275, 50-323License Nos.: DPR-80, DPR-82

Enclosure:

NRC Inspection Report No. 05000275/2007202, 05000323/2007202 cc w/encl:Bob Zimkowski, Site Security ManagerDiablo Canyon Power Plant P.O. Box 56 Avila Beach, California 93424cc w/o encl:Matthew R. Bettenhausen, DirectorCalifornia Office of Homeland Security State Capitol Sacramento, CA 95814Director, Radiological Health BranchState Department of Health Services P.O. Box 997414, MS 7610 Sacramento, CA 95899-7414