SACRAMENTO, California — California’s investor-owned utilities launched a seven-figure advocacy campaign Monday to replenish the state’s fund to cover their liability in case their equipment sparks a wildfire.
What happened: Southern California Edison, San Diego Gas & Electric and Pacific Gas & Electric are pouring money behind Gov. Gavin Newsom’s proposal last month to replenish the fund before the end of the legislative session Sept. 12. The campaign includes mailers and television and digital advertisements. It also includes support from the California Professional Firefighters and electrical worker unions.
Why this matters: The urgency stems from Southern California Edison’s potential liability for the Eaton Fire in January, which tore through Altadena after sparking near utility equipment. The fire has already triggered multiple lawsuits, and estimated insured property losses could reach $15 billion — surpassing the $13 billion currently in the fund. That could leave nothing for other wildfire-related claims during the fall, typically the peak of California’s fire season.
More details: Lawmakers created the fund in 2019 after PG&E’s bankruptcy from causing the deadly Camp Fire in Butte County and stocked it with $21 billion from utility shareholders and ratepayer funds. Newsom proposed last month injecting $18 billion more into the fund: $9 billion from ratepayers, collected via a ten-year extension of an existing wildfire charge on bills, and $9 billion from utility shareholders.
