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4w ago

Newsom Proposes $18B Wildfire Fund Expansion as Edison Launches Eaton Fire Aid

Legislators are weighing equal cost-sharing on an $18 billion infusion, a 10-year extension, subrogation caps to shore up the fund.

Destroyed homes from the Palisades Fire in the Alphabet Streets neighborhood of Pacific Palisades, CA, on Monday, January 27, 2025. The wind-whipped fire destroyed at least 23,448 acres and destroyed thousands of structures. This image is a composite of multiple aerial photos. (Photo by Jeff Gritchen, Orange County Register/SCNG)
A house burns as powerful winds fueling devastating wildfires in the Los Angeles area force people to evacuate, at the Eaton Fire in Altadena, California, U.S. January 8, 2025. REUTERS/David Swanson/ File Photo
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Overview

  • The draft legislation calls for a 50/50 split of the $18 billion increase between a new monthly fee on electricity bills and direct contributions from Edison International, PG&E Corp. and Sempra.
  • It would extend the fund’s sunset date from 2035 to 2045 and require state agencies to study broader cost-sharing of utilities’ wildfire risks across California taxpayers.
  • Newsom’s plan would cap insurers’ subrogation claims to limit high settlements that accelerate depletion of the fund.
  • Southern California Edison will launch a Wildfire Recovery Compensation Program this fall to aid Eaton Fire victims, intending to seek reimbursement from the state’s enlarged fund.
  • Edison CEO Pedro Pizarro has rejected shareholder contributions, and investors have driven Edison shares down over 30% since January as fire-liability investigations continue, putting the fund’s solvency at risk.