PG&E says will replace bushings at Diablo Canyon 2

LOS ANGELES Aug 14 (Reuters) - Pacific Gas & Electric Co workers will replace bushings on a key transformer at its Diablo Canyon Unit 2 in California, a PG&E spokeswoman said on Friday.

Emily Christensen would not say how long the 1,150-megawatt Unit 2 would be offline. Unit 2 shut down Thursday.

The electric and natural gas utility PG&E Co is the main subsidiary of PG&E Corp (PCG.N). Both are based in San Francisco.

A replacement bushing for the transformer is on site, and workers since Thursday have been preparing to replace the bushing in case tests showed that was needed, Christensen said.

The shutdown has not greatly affected wholesale power prices because this summer has been relatively mild, and ample generation reserves are on hand, traders said. Also limiting demand is this year's recession.

Diablo Canyon is in Avila Beach, in San Luis Obispo County, about 195 miles northwest of Los Angeles.

Unit 1 remains online. Its capacity is also 1,150 MW.

At 1,150 MW, each unit can power about 800,000 households. (Reporting by Bernie Woodall; Editing by Marguerita Choy)