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22h ago

California Wildfire Fund at Risk of Depletion as SCE Unveils Compensation Program

Council members are debating measures to shore up the state’s reserves following reports that Eaton fire claims could exceed available coverage.

Sam Holtzman and his son Eibu, 9, residents of northwest Altadena, whose house still stands but remains inaccessible due to Eaton Fire contamination in January, look at a map of Altadena fire damage created by Noel McCarthy, a stylized update of Los Angeles County's Eaton Fire damage map, Wednesday, July 9, 2025, in Altadena, Calif. (AP Photo/Chris Pizzello)
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Southern California Edison, whose power lines are suspected of having started the huge blaze that ripped through the Los Angeles suburb of Altadena, says it will pay compensation even without any formal finding it was at fault

Overview

  • The California Catastrophe Response Council met on July 24 to review draft findings warning that Eaton fire damage claims may fully exhaust the $21 billion wildfire fund established under AB 1054.
  • Southern California Edison announced it will launch a Wildfire Recovery Compensation Program this fall to offer direct payouts to victims before final determinations on equipment liability.
  • Investigators continue probing whether a decades-old, idle Edison transmission line reenergized and sparked the January 7 blaze that killed 19 people and destroyed about 9,000 homes.
  • Wall Street hedge funds have begun buying insurance subrogation rights against Edison, prompting concerns that aggressive claim trading could further strain the state fund.
  • Governor Gavin Newsom and legislative leaders are considering options such as extending consumer surcharges and capping attorney fees to replenish the fund’s reserves.