excessive pride or self-confidence
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I'd say it fits but yours [1] is a better known characterization.
I was using it in the tradition of [2] Greek Tragedy Hubris.
"The overbearing pride which leads humans to follow paths or projects which lead to certain self-destruction."
[1] https://en.m.wikipedia.org/wiki/Don't_throw_the_baby_out_wit...
[2] http://theatreofancientgreece.blogspot.com/2014/11/hubris-or...?
it is objectively the safest method for power generation
The key violation for the current plant is its cooling system, which uses once through sea water. To limit the damage to the environment, a modern cooling system would need to be built. When PG&E took bids for new cooling systems, all designs had a construction cost of many billions.
Rather than pay for such an expensive upgrade, PG&E made the wise decision to spend that money on cheaper replacements. The problem is that despite having a decade to get things in order, they haven't yet done met the capacity needs for the rest of the state, much less for this capacity retirement.
Therefore, ineligible for pocketing green subsidies to build new stuff.