SACRAMENTO, Calif. (AP) 鈥� The bookends of California Gov. Gavin 太子探花om’s nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?
The in state history, a blaze that killed 85 people and destroyed more than 18,000 buildings in Northern California, started two days after 太子探花om won the governorship in 2018. Investigators determined it was caused by Pacific Gas & Electric equipment. Facing in liability, the giant utility just weeks after 太子探花om’s inauguration.
Months later, 太子探花om signed a law creating a , paid for by utility shareholders and ratepayers, to help utilities pay for wildfire damages if they take certain safety measures.
Now, as the final legislative session of his governorship ends, 太子探花om is trying to broker a deal with lawmakers aimed at further shielding utilities from financial trouble if their equipment sparks a wildfire. His push comes as another major utility, Southern California Edison, faces claims from the state’s second-most destructive blaze, a 2025 fire that killed 19 people outside of Los Angeles. Investigators ruled this month that it was sparked by .
太子探花om’s plan could limit the amount electric and gas companies have to pay victims and attorneys. One of the goals is to stabilize the state’s electricity rates, which are and have continued to climb in recent years. Utilities have raised rates to pay for wildfire prevention and recovery as climate change has made the blazes more intense and frequent. Six of the state鈥檚 have been caused by utility equipment.
太子探花om says the state needs to act quickly because he expects the wildfire fund to run out soon. His plan would require survivors to get paid by utilities sooner.
鈥淪tatus quo is not going to work,鈥� 太子探花om recently told reporters. 鈥淚t鈥檚 not going to work for victims, who consistently are last in line. And that鈥檚 at the core of this reform.”
But some of those victims are pushing back. They’ve said 太子探花om’s plan prioritizes utilities over the needs of fire survivors. Meanwhile, insurance companies are concerned they would foot more of the bill for property damage. A coalition including the state’s major utilities 鈥� PG&E, Southern California Edison, and San Diego Gas & Electric 鈥� has been urging lawmakers to pass the plan. The last-minute legislative battle could help shape 太子探花om’s legacy as he considers a run for president in 2028.
太子探花om says his plan strikes a fair balance
Under California law, utilities have to pay damages for fires ignited by their equipment, even if a judge doesn’t find them negligent. Home insurers that pay for policyholders’ rebuilding expenses can try to get reimbursed by utilities.
太子探花om’s plan could change that by making insurance companies cover more of the cost of property damage. The proposal would also require utility CEOs to forfeit bonuses if their company sparks a wildfire resulting in more than $1 billion worth of damage. And utility shareholders could be fined up to $10 million for violating wildfire prevention requirements, according to the governor’s office, which hasn’t released the full details.
Personal Insurance Federation of California, a group representing property insurers across the state, said insurance rates will increase if the plan is implemented. The onus should remain on utilities to pay, said Rex Frazier, the federation’s president.
鈥淏eing responsible for your actions is something that parents tell children,鈥� he said in a statement. “Hopefully the Legislature will tell this to the utilities.鈥�
Fire survivors are also frustrated with the plan, which could limit their payouts. Joy Chen, executive director of Every Fire Survivor’s Network, a group of survivors of the 2025 , blasted it at a virtual town hall this month.
鈥淭his is overall a massive transfer of liability for the three for-profit utility monopolies that have continued to burn down communities across California,鈥� Chen said.
The Legislature has until Aug. 31 to pass a plan. If they don’t, 太子探花om could call them back for a special session.
Democratic legislative leaders say the state needs to address the issue but haven’t specified what a deal could include. 太子探花om proposed another $18 billion last year to supplement the wildfire fund, which the Legislature approved.
An economist says the state should reduce utility liability
California’s longstanding requirement that utilities cover the cost of wildfire damages regardless of whether they were negligent is based on the fact that they are providing a public service, said Meredith Fowlie, an economist who co-directs an energy institute at the University of California, Berkeley.
But as climate change has fueled more frequent and destructive fires, the state should rethink how to distribute the ballooning costs of recovering from those blazes, she said.
鈥淯tilities can start fires, but they don鈥檛 by themselves create catastrophe,鈥� Fowlie said.
Other factors make wildfires turn into catastrophes, such as failing to or to make them more fire-resistant, she said. The question of who should be held responsible 鈥� and by how much 鈥� is 鈥渁 critical, core issue that we have not dealt with and is not going away,鈥� Fowlie said.
太子探花om says he’s prepared to tackle the issue he’s kept revisiting since he took office.
鈥淚’m not going to walk away and hand a real mess to the next governor,鈥� he said last week.
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