politics
Newsom Pitches Faster Wildfire Payouts, But You'd Lose Your Right to Sue
The bookends of California Gov. Gavin Newsom’s nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?
TL;DR
- Gov. Gavin Newsom is proposing a plan to limit utility companies' financial liability for wildfire damages caused by their equipment.
- The proposal aims to speed up payouts to wildfire victims and stabilize California's high electricity rates.
- Fire survivors and insurance companies are pushing back, arguing the plan prioritizes utilities over victims and could increase insurance rates.
- The current law requires utilities to pay for damages from fires caused by their equipment, even without negligence.
- Six of the state's 10 most destructive wildfires have been caused by utility equipment.
- The legislative session ends August 31, and a deal is being brokered to address the issue.
- The plan could require insurance companies to cover more property damage costs.
- Utility CEOs could forfeit bonuses, and shareholders could be fined if their company sparks a wildfire causing over $1 billion in damage.