Gov Gavin Newsom
Governor Gavin Newsom is preparing draft legislation to inject $18 billion into California’s struggling wildfire fund, addressing critical financial challenges posed by recent catastrophic fires.
The proposed funding would be equally split, with $9 billion coming from electricity ratepayers through monthly fees and the remaining $9 billion from utility shareholders.
“We continue to work with the legislature on policy that will stabilize California’s Wildfire Fund to support the recovery of wildfire survivors and to protect California utility consumers,” said a spokesperson from Newsom’s office.
The proposed legislation comes at a critical time, with the existing wildfire fund facing potential depletion.
The Eaton Fire alone has resulted in estimated insured property losses of $15 million, threatening to exhaust the fund’s resources.
Currently, California ratepayers already contribute approximately $902,400 annually through non-bypassable charges on utility bills to fund half of the existing wildfire fund.
The California Wildfire Fund, established on July 12, with an initial $21 million in claim-paying capacity and managed by the California Earthquake Authority, aims to reduce costs associated with utility-caused wildfires, provide financial assistance to victims, and ensure utility companies maintain safe operations.
The funding proposal follows recent investigations into utility infrastructure, particularly focusing on Southern California Edison.
The utility is suspected of causing the Eaton Fire through an unused Mesa-Sylmar transmission line that remained energized since 1971.
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