California Governor Wants More Money for Utilities Wildfire Fund

California Governor Newsom is pushing for legislation to beef up the fund utilities can use to keep them in business in the event of wildfires that might force them into bankruptcy. The fund basically serves three utility companies — Edison International, PG&E and Sempra.

Newsom wants an additional $18 billion to nearly double the around $13 billion currently in the fund.

To pay for the increase, Newsom’s proposal would have ratepayers picking up the tab for half via a monthly fee on their power bill. The other half would come from the three power companies.

Newsom’s push came from investors dumping Edison stock because of worries the company will end up being responsible for one of the Los Angeles wildfires. Though there have been hints that Edison’s equipment may have started one of the fires, no proof has emerged. However, if lawsuits are filed, and successful, the fund will be drained leaving Edison, and the other utilities, without an all-important lifeline.

By the way, because of those rumors, Edison’s stock prices have fallen 30% since January.

“We continue to work with the legislature on policy that will stabilize California’s Wildfire Fund to support the recovery of wildfire survivors and to protect California utility consumers — even as wildfires become bigger and more destructive due to climate change,” Newsom’s office said in a news release.

Source link: Insurance Journal — https://bit.ly/45y9xGx