Newsom drops most of his utility wildfire-liability plan in SB 492 deal

Opponents included insurance companies, consumer advocates and Eaton Fire survivors.

California’s $18 billion wildfire fund is funded 50-50 by utility customers and shareholders.

The state commits to improving local wildfire mitigation and sharing more insurance-coverage data in fire-risk areas.

Proponents of Newsom’s proposals remain concerned another catastrophic fire could drain the fund and leave utilities facing potential bankruptcies.

Nine of California’s 20 most destructive wildfires were caused by electrical equipment or power lines.

Company stocks tumbled Friday after reports of a potential agreement that did not include any utility cost-shifts.

Fire survivors and consumer advocates credited the Senate, especially Limón, for pushing back on Newsom.

Pérez commended survivors for pressuring lawmakers over the past couple of weeks.

More than 50 Eaton fire survivors protested Monday night in front of the governor’s mansion in Sacramento.

On Saturday, wildfire victims praised lawmakers who had stood up to the governor’s push for legislation benefiting the utilities.

Eaton wildfire survivors had been calling on Newsom for weeks to unveil the legislation so they could see the details.

Edison kept the line in place despite not using it since 1971.

A confidential document said Newsom wanted to cap fund reimbursements at $6 billion and require electric customers to pay costs above that.

More than 11,000 households have sued Edison, claiming negligence, which the company denies.

That cap would have limited utilities’ liability but increased electric bills.

Despite the Eaton fire, bonuses for Pedro Pizarro and other Edison International executives soared last year.

Pizarro received $16.6 million in cash, stock and other compensation last year, up 20% from 2024.

Newsom had touted in 2019 that his legislation tied utility executive pay to safety performance, but the language let companies decide how.

The bill would put requirements on attorneys seeking to represent victims.

The debate also covered property insurance premiums, utility bills and who was eligible for claims after a disaster.

Every Fire Survivor’s Network, formed after last year’s Eaton Fire, was one of the leading critics.

Joy Chen, the organization’s executive director, celebrated the deal Saturday.

Two key parts related to the wildfire liability fund raise transparency and cost questions for ratepayers.

Ratepayers of a private utility that causes another fire would be on the hook to pay back those new bonds if needed.

The legislation would allow some meetings and records related to the wildfire liability fund to be shielded from the public.

SB 492 would exempt the California Catastrophe Response Council from public meeting and records laws for administering or evaluating individual wildfire-fund claims.

Those ideas are ones lawmakers and the governor have been talking about publicly.

The California Earthquake Authority would also be exempted from the public records act for records on administering or evaluating wildfire-fund reimbursement claims.

It was not immediately clear Saturday why the public-meeting and records exemptions were necessary.

Wildfire victims who worried Newsom’s original proposal would have limited their restitution applauded the deal.

Wildfire survivors applauded the deal while acknowledging it was not yet final.

Before Saturday’s release there were rumors of an attorney-fee cap, a ban on inverse-condemnation suits, and a bar on some smoke and soot claims.

The proposed legislation is generating much attention for what it does not include.

Edison has acknowledged its equipment might have ignited the blaze and faces thousands of survivor claims.

The Sacramento fight centered on how to divide costs among utilities, ratepayers, insurers, taxpayers and survivors.

Eaton and Palisades survivors pressed caravans and postcard campaigns in recent weeks, joined by civil rights and consumer advocates, faith leaders and community groups.

Arnzen spoke with Rep. Laura Friedman on Friday to push for LA Fire Recovery Funds in the next federal appropriations bill.

Arnzen remains displaced while rebuilding his Altadena home and is lobbying for other bills residents call good.

Pérez’s SB 1090, headed to the Senate floor, would give Altadena the same lot-split protections as Pacific Palisades.

AB 1642 by Assemblymember John Harabedian would create insurance standards for post-wildfire toxicity in homes and is awaiting Senate votes.