Newsom’s Plan to Raise $18 Billion for State Wildfire Fund Faces Tough Opposition
Source: Los Angeles Times | By Melody Peterson
The three utilities have been lobbying in Sacramento, asking that the fund be strengthened, since January when the Eaton fire roared through Altadena after igniting under an Edison transmission tower. But utility executives say they are opposed to their shareholders paying more. Newsom and lawmakers created the state wildfire fund in 2019 through a bill known as AB 1054 to protect the three utilities from bankruptcy in the event their electric lines sparked a catastrophic wildfire. The first $21 billion into the fund was paid half by customers and half by utility shareholders.
“We’re very disappointed to be at a point where there is even talk of more ratepayer money going to the wildfire fund,” said Mark Toney, executive director of the Utility Reform Network, a consumer advocacy group in San Francisco. Toney said state officials told him in 2019 that there was a 99% chance the fund would last 20 years. Six years later, it could be wiped out by damages from the Eaton fire alone.
