California wildfire liability reform stalls as PG&E cuts 2027 investment plan

Sep 1, 2026 21:27 (21d ago)

California lawmakers passed wildfire insurance, prevention and restitution measures but declined to advance a compromise on utility wildfire liabilities.
PG&E cut its 2027 capital spending plan by $2 billion to $11.4 billion, while Poppe said lower borrowing costs could have saved customers $600 million over two years.
The 2025 Eaton and Palisades fires killed 31 people and destroyed more than 16,000 structures; approved bills now await Gov. Gavin Newsom’s consideration.

California lawmakers approved wildfire recovery, insurance and prevention measures during the 2026 legislative session but declined to advance Senate Bill 492, a compromise that would have accelerated payments to fire survivors while limiting some utility wildfire liability. PG&E CEO Patti Poppe said lawmakers could still revive the proposal in a special session, but said unresolved liability risk had contributed to a $2 billion reduction in PG&E’s 2027 capital plan, to $11.4 billion, delaying housing and renewable-energy projects. The Eaton and Palisades fires destroyed more than 16,000 structures and killed 31 people. Approved measures address claim estimates, payment delays, nonrenewals, smoke contamination, home-hardening financing and unpaid restitution from utility-caused fires; they now go to Gov. Gavin Newsom for consideration.