California Assembly Lets Wildfire Liability Deal Die Without Vote as PG&E Shares Sink 28%
Updated
Updated · KQED · Sep 2
California Assembly Lets Wildfire Liability Deal Die Without Vote as PG&E Shares Sink 28%
3 articles · Updated · KQED · Sep 2
Summary
Senate Bill 492 collapsed Tuesday when the Assembly ended its regular session without a vote, killing a last-minute deal meant to speed payments to wildfire victims and curb some utility-related fallout.
The compromise had already lost support because PG&E and Edison International said it did not reduce utilities’ strict liability enough, and Gavin Newsom said the bill failed to address the crisis’s structural problems.
PG&E shares fell from above $18 on Friday to just over $13 on Monday after the weekend deal, underscoring investor alarm over wildfire exposure that has repeatedly battered California utilities.
California law holds utilities liable for damage caused by their equipment even without negligence, while wildfire liability adds about 5% to average monthly power bills and mitigation another 15%.
Speaker Robert Rivas said lawmakers will resume work this fall, leaving unresolved a fight that has roiled the state’s insurance market, pushed electricity rates to the nation’s second highest and shadowed Newsom’s final term.