The California Assembly has adjourned without passing a revamp of the state's wildfire response. This legislative setback leaves unresolved how victims, utilities, insurers, and ratepayers will divide the escalating costs of utility-sparked fires.
The debate over who pays for damage from fires, including those involving utilities linked to major blazers, remains unresolved. However, lawmakers are expected to vote on a bill that would ensure survivors of utility-sparked wildfires get paid faster.
Market reactions have been mixed for key power utilities PG&E Corp. and Edison International. Shares in the utilities rose following the failure to pass the response revamp, but dropped sharply after lawmakers balked at Governor Newsom’s proposal to limit utilities’ wildfire liabilities.