Overview
- Governor Gavin Newsom is urging lawmakers in the closing weeks of the legislative session to approve changes that would cap or limit what private utilities must pay when their equipment causes wildfires while formal draft legislation remains unpublished.
- Survivor groups, insurers, local governments and consumer advocates oppose the plan because it would reduce victims’ ability to recover full damages and could narrow who qualifies as a wildfire victim.
- A government report found Southern California Edison responsible for the deadly 2025 Eaton fire, and critics note Edison reported large 2025 profits and shareholder payouts when arguing the company does not need reduced liability.
- Investor-owned utilities are backing a coalition called 'Wildfire Victims First' and plan major television ad buys to promote the proposal, and some ad consultants and spokespeople have ties to Newsom’s political operation.
- Policy experts and insurers warn that limiting utility liability could push costs onto homeowners and insurers, raise premiums in high-risk areas, and weaken financial incentives for utilities to invest in grid safety while the state’s wildfire fund faces strains.