Newsom Pushes Wildfire-Cost Plan With 1 Week Left as California Tries to Avert Utility Failures
Updated
Updated · POLITICO · Aug 22
Newsom Pushes Wildfire-Cost Plan With 1 Week Left as California Tries to Avert Utility Failures
3 articles · Updated · POLITICO · Aug 22
Summary
With just over a week left in the legislative session, Gavin Newsom has circulated a proposal to lawmakers to tackle California wildfire liabilities and utility solvency, though no bill text has been released.
The push reflects rising pressure on a power system strained by climate-driven fire costs, with Newsom’s allies arguing another utility bankruptcy would deepen damage to customers, insurers and the state’s clean-energy agenda.
Wildfire survivors have attacked the closed-door talks as utility-friendly, reviving criticism that Sacramento again may shield power companies while leaving victims short of full rebuilding costs.
The fight follows Newsom’s 2019 creation of a wildfire fund backed by ratepayers and shareholders, and its expansion last year to help cover tens of billions of dollars in claims tied to Southern California Edison’s 2025 Eaton Fire.
Across the fire-prone West, utilities are pressing for legislation to contain liabilities as insurers raise premiums or retreat, underscoring how wildfire costs are colliding with grid reliability and climate policy.