California Assembly Kills Wildfire Liability Bill to Preserve Utility Company Accountability
The California State Assembly ended its regular session without a vote on Senate Bill 492, a wildfire liability reform plan. The bill sought to establish a fast-pay system for fire victims, cap attorney fees, and limit bonuses for utility executives following utility-caused fires. However, the legislation failed to include the specific changes requested by the state's two largest power companies, Pacific Gas and Electric and Southern California Edison, which wanted to limit the ability of insurance companies to sue utilities to recoup losses, a process known as subrogation. Governor Gavin Newsom criticized the deal, stating that the measure did not address the underlying structural problems of the wildfire crisis. Assembly Speaker Robert Rivas announced that lawmakers will return to the issue in the fall to ensure the and deliver meaningful reform. Following the decision, stocks for Pacific Gas and Electric and Edison International rose significantly. The two utilities had previously warned that failing to shield them from subrogation costs would lead to higher electricity rates and less investment in the state. While the bill was killed, the administration announced that the governor will continue to work on a comprehensive solution to fix the entire problem.
Sources
-
Deal on California Wildfire Liability Collapses in Legislature
kqed.org
-
Wildfire costs loom over California legislative session that passed solar, data center bills
Utility Dive
-
California Assembly kills wildfire liability plan Gov. Newsom agreed to with legislators
KCRA