Newsom, California lawmakers reach narrower wildfire-liability deal after dropping broader utility protections

  • Newsom and California lawmakers agreed to narrower wildfire-liability measures after dropping broader utility protections.
  • The bill creates faster victim payments and blocks hedge funds from profiting on wildfire claims.
  • The legislation excludes a proposed $6 billion cap on Wildfire Fund reimbursements to utilities.

California Gov. Gavin Newsom and lawmakers reached a late-night agreement on narrower wildfire measures after abandoning proposals that would have shifted more utility-fire costs to insurers, potentially raising property premiums, reduced victim recoveries and transferred more costs to local governments. The 96-page bill limits certain fees charged by attorneys representing insurers, bars hedge funds and private equity firms from profiting on wildfire claims, and creates a state program to accelerate payments to victims. It also requires Edison, Pacific Gas & Electric and San Diego Gas & Electric to prevent top executives from receiving short-term bonuses after fires damaging at least 500 structures. The legislation does not include a proposed $6 billion cap on Wildfire Fund reimbursements or the requirement that electric customers cover costs above that level. PG&E shares had fallen 7.63% to $16.58 on Friday, according to existing market reporting, as investors assessed the liability debate. The bill was attached to Senate Bill 492 less than three days before the session deadline, forcing an extension to Tuesday under a 72-hour printing requirement. Newsom called the agreement progress but urged further structural reform to protect the Wildfire Fund, stabilize electricity rates and prevent victims from becoming unsecured creditors in bankruptcy.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.