Newsom Weighs Special Session on Wildfire Liability as Utilities Lose $20 Billion
Updated
Updated · KCRA Sacramento · Sep 1
Newsom Weighs Special Session on Wildfire Liability as Utilities Lose $20 Billion
3 articles · Updated · KCRA Sacramento · Sep 1
Summary
Newsom said he may call a special legislative session after PG&E and Southern California Edison shares kept sliding when lawmakers refused to curb insurers’ subrogation rights.
The governor has warned California’s wildfire liability fund could be depleted by Eaton Fire claims and that another utility-caused blaze could push the responsible company into bankruptcy.
Lawmakers are set to vote Tuesday on a narrower bill that would cap some attorney fees and utility CEO bonuses after a fire, but it leaves subrogation untouched and needs two-thirds approval.
PG&E and Edison told lawmakers they have lost $20 billion in market value since Thursday, while activist investors were already pressing PG&E’s board for major changes that could lead toward a takeover.