California lawmakers advanced an amended version of Senate Bill 492 without the wildfire liability protections investors had priced in, triggering steep declines across investor-owned utilities. PG&E Corp shares plunged 18% to $13.57 on Monday before attempting to recover Tuesday afternoon, trading up 5.65% at $14.02 near the 52-week low of $13.08. The legislation includes limits on executive compensation at utilities that start fires, a fast-pay program for victims and a ban on private-equity funds purchasing wildfire claims but omits provisions to recapitalize or restructure the state wildfire fund or institute a legal liability cap, leaving operators exposed to potentially uncapped financial liabilities past 2030. PG&E management noted the revised bill aids wildfire survivors and disaster preparedness but explicitly stated it falls short of creating the long-term durability needed for affordable investment and lower customer costs. Analysts from BofA Securities, Mizuho and BMO Capital downgraded PG&E on the legislative shortfall. Edison International also suffered its worst single-day drop in over 25 years, falling 24.2% to $54.22.