The issue: The Newsom administration claims that utilities are left holding the bag after wildfires…enabling attorneys, hedge funds, and other actors to swoop in for profits. So when a utility declares bankruptcy, like PG&E did in 2019, this prevents wildfire survivors from receiving full compensation.
The solution? The administration’s proposal includes: 1) Limiting claims by insurance companies, corporations, and public entities 2) banning utility CEO bonuses in years when a company ignites “a catastrophic fire and causes fatalities” and 3) increasing shareholder penalties for safety violations by 10x (to $10M per violation per day).
The pushback: Survivor advocates and insurance industry groups have opposed this effort. They claim that reducing utility liability “would shift billions of dollars in costs away from utility shareholders and onto insurance policyholders, cities, counties, taxpayers, and wildfire victims.”
Molly Glick
Energy Central Team
Mon, Aug 17