California lawmakers have reached an initial agreement to shore up the state’s wildfire utility fund.
The agreement is expected be filed into legislative text on Wednesday after lawmakers suspended a Tuesday deadline,
according to people familiar with the negotiations who asked not to be named because the information is priv
ate. The boost will be around $18 billion, according to the people.
Related: Former California Insurance Commissioner Carries on Climate Change Crusade
The agreement would see ratepayers contribute half of the money and utility shareholders contribute the oth
er half, according to the people. The proposal is aimed at stabilizing utilities’ finances and limiting shareholder losses.
The move comes after January wildfires that devastated the Los Angeles area put the California Wildfire F
und at risk of being depleted. Potential liabilities from fires in the state have increased risks for utilities such as Edison International and PG&E Corp.
Related: US Government Says Southern California Edison Should Pay for LA Fire Costs
Established in 2019 after liabilities from the Camp Fire and other blazes sent PG&E into bankruptcy, the $21 billion fu
nd currently has more than $13 billion in assets, according to the state. The state’s investor-owned utilities can pull from the fund to cover fire-related damages exceeding $1 billion.
Watch More Image Part 2 >>>
“Multiple fires remained active today with short range spotting, rollout and trees falling contributing t
o fire spread. Increased day time temperatures and lack of cloud cover are contributing to decreased moisture in the vegetation throughout the complex area,”
an update issued on Thursday from CalFire states. “Northwest winds are expected to continue throughout the area.”
Gov. Gavin Newsom said this week that California secured a Fire Management Assistance Grant from the Federal
Emergency Management Agency to help ensure the availability of reso
rces to suppress the 2-7 fire within the TCU September Lightning Complex Fire.
The FMAG, which is provided through the FEMA on a cost-share ba
sis, goes to assist local, state, and tribal agencies responding to the fire to apply for 75% reimbursement of their eligible fire suppression costs.