Gavin Newsom seeks to broker a legislative deal to limit utility liability for California wildfires.
Gavin Newsom is attempting to secure a legislative agreement to reform how California handles the costs of wildfires caused by utility equipment. The governor's plan aims to provide financial stability for electric and gas companies while attempting to balance the costs between utilities, insurance companies, and fire survivors. Under current law, utilities are responsible for damages even if they are not found negligent. Newsom's proposal would shift more of the property damage costs to insurance companies and require utility CEOs to forfeit bonuses if their companies spark a fire causing over $1 billion in damage. The administration announced that the plan seeks to stabilize electricity rates, which are currently among the highest in the nation. While the California Professional Firefighters supported the plan, some survivors and insurance representatives expressed concern that the victims and insurers would bear more of the burden. The Legislature has until August 31 to pass the plan, or Newsom could call a special session.