California lawmakers ended their session without bringing a wildfire liability bill to a vote in the Assembly, leaving utilities exposed to full costs from major fires they may cause. The measure emerged after weeks of private talks but could not overcome resistance from Governor Gavin Newsom and the state's largest electric companies.
The bill would have preserved unlimited compensation for fire victims and their attorneys while allowing insurers to pursue utilities for reimbursement. It also sought to block private equity firms from buying insurance claims. Newsom had pushed the legislation to limit future rate increases and avoid another utility bankruptcy.
Assembly Speaker Robert Rivas stated that the proposal did not deliver sufficient relief, accountability or reform for Californians. Stocks of Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric dropped sharply once the outlines of the agreement became public, erasing roughly $20 billion in combined market value.
Consumer Watchdog president Jamie Court called the collapse tragic, noting that utilities appeared to walk away after the deal was struck. Every Fire Survivors Network executive director Joy Chen said hundreds of hours had been spent opposing any shift of costs onto victims and warned against similar provisions in future sessions.
Utility employee lobbyist Scott Wetch said workers and ratepayers lost while lawyers and insurers prevailed. Assemblymember Jacqui Irwin described the failure to achieve structural reform as a major setback for the state.
Assemblymember Chris Rogers objected to the compressed timeline that left little room for constituent input or amendments. Assemblymember John Harabedian later said the measure merely rearranged existing problems without delivering needed changes for survivors or the broader public.
Newsom indicated he would continue addressing electricity costs and wildfire risks into the new year. The utilities warned lawmakers that reduced investor confidence could raise borrowing costs and slow needed infrastructure spending.
This report is based on coverage by LAist: https://laist.com/news/politics/california-wildfire-liability-bill-dies-without