Overview
- A government probe found that an out‑of‑service Southern California Edison transmission line was briefly reenergized and ignited the Eaton fire that killed 19 people and destroyed large parts of Altadena.
- Internal slides shown to state senators would make a 20% equity‑based cap permanent, capping shareholder exposure at roughly $4.3 billion for Edison, $5.1 billion for PG&E and $1.5 billion for SDG&E.
- Utilities are lobbying state leaders for a special legislative session to enact the cap and have told investors they may defer projects and cut capital spending without liability limits; PG&E has already notified thousands of customers that it may defer about $2 billion in work.
- Consumer advocates, wildfire survivors and some lawmakers oppose the plan as a bailout that would reduce financial deterrents for negligence and push most fire costs onto ratepayers and victims.
- If enacted, the measure would reshape who pays for future utility‑caused fires, raise political stakes for the governor and Legislature, and interact with ongoing regulatory review by the CPUC and a criminal inquiry into Edison.