Gov. Newsom signs wildfire safety and accountability legislation
California Gov. Gavin Newsom recently signed a bill aimed at protecting California’s investor-owned electric utilities (IOU) from liabilities due to wildfires.
AB 1054, authored by Assemblymember Chris Holden (D-Pasadena), would create a $21 billion insurance fund that utilities could use if they obtain an annual safety certification issued by the state. The bill also puts limits on executive pay and requires companies to invest $5 billion in safety improvements.
Ratepayers will pay $10.5 billion into the fund through a 15-year extension of an existing charge. If they choose to participate, the state’s three major investor-owned utilities, Southern California Edison, San Diego Gas & Electric and Pacific Gas and Electric Company (PG&E), will match the funding contributed by their ratepayers. PG&E will be allowed to contribute and participate after it settles its 2017 and 2018 wildfire claims and emerges from bankruptcy protection.
“I want to thank the Legislature for taking thoughtful and decisive action to move our state toward a safer, affordable and reliable energy future, provide certainty for wildfire victims and continue California’s progress toward meeting our clean energy goals,” Newsom said. “The rise in catastrophic wildfires fueled by climate change is a direct threat to Californians. Strengthening our state’s wildfire prevention, preparedness and mitigation efforts will continue to be a top priority for my administration and our work with the Legislature.”
Both houses of the California State Legislature passed the bill as an urgency bill, meaning the law will go into effect as soon as possible.
