SACRAMENTO, Calif. (AP) — The bookends of California Gov. Gavin Newsom's nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?
One year of digital access for only $205*
*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.
SACRAMENTO, Calif. (AP) — The bookends of California Gov. Gavin Newsom's nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?
SACRAMENTO, Calif. (AP) — The bookends of California Gov. Gavin Newsom’s nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?
The most destructive wildfire in state history, a blaze that killed 85 people and destroyed more than 18,000 buildings in Northern California, started two days after Newsom won the governorship in 2018. Investigators determined it was caused by Pacific Gas & Electric equipment. Facing tens of billions of dollars in liability, the giant utility filed for bankruptcy just weeks after Newsom’s inauguration.
Months later, Newsom signed a law creating a $21 billion fund, paid for by utility shareholders and ratepayers, to help utilities pay for wildfire damages if they take certain safety measures.
Now, as the final legislative session of his governorship ends, Newsom is trying to broker a deal with lawmakers aimed at further shielding utilities from financial trouble if their equipment sparks a wildfire. His push comes as another major utility, Southern California Edison, faces claims from the state’s second-most destructive blaze, a 2025 fire that killed 19 people outside of Los Angeles. Investigators ruled this month that it was sparked by one of the company’s transmission towers.
Newsom’s plan could limit the amount electric and gas companies have to pay victims and attorneys. One of the goals is to stabilize the state’s electricity rates, which are among the highest in the nation and have continued to climb in recent years. Utilities have raised rates to pay for wildfire prevention and recovery as climate change has made the blazes more intense and frequent. Six of the state’s 10 most destructive wildfires have been caused by utility equipment.
Newsom says the state needs to act quickly because he expects the wildfire fund to run out soon. His plan would require survivors to get paid by utilities sooner.
“Status quo is not going to work,” Newsom recently told reporters. “It’s not going to work for victims, who consistently are last in line. And that’s at the core of this reform.”
But some of those victims are pushing back. They’ve said Newsom’s plan prioritizes utilities over the needs of fire survivors. Meanwhile, insurance companies are concerned they would foot more of the bill for property damage. A coalition including the state’s major utilities — PG&E, Southern California Edison, and San Diego Gas & Electric — has been urging lawmakers to pass the plan. The last-minute legislative battle could help shape Newsom’s legacy as he considers a run for president in 2028.
Newsom says his plan strikes a fair balance
Under California law, utilities have to pay damages for fires ignited by their equipment, even if a judge doesn’t find them negligent. Home insurers that pay for policyholders’ rebuilding expenses can try to get reimbursed by utilities.
Newsom’s plan could change that by making insurance companies cover more of the cost of property damage. The proposal would also require utility CEOs to forfeit bonuses if their company sparks a wildfire resulting in more than $1 billion worth of damage. And utility shareholders could be fined up to $10 million for violating wildfire prevention requirements, according to the governor’s office, which hasn’t released the full details.
Source: Read the original article on www.winnipegfreepress.com
