California Gov. Newsom floated a proposal to nearly double the $21 billion wildfire fund created to protect the state's major investor-owned electric utilities.
Newsom's proposal would add $18 billion to the fund and split the burden equally between shareholders of the three utilities that participate in the fund and its ratepayers.
Customers of Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric already pay a surcharge on their bills to help support the fund.
"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 — even as wildfires become bigger and more destructive due to climate change," Daniel Villasenor, a spokesman for the governor, said in a statement.
The governor proposed the plan after staff for the Catastrophe Response Council, which manages the fund,
The eastside fire, one of two
Half the seed money for the
That was matched by $10.5 billion from ratepayers, which is being collected over 15 years beginning in 2020 through a $3 monthly surcharge.
As of January 2025, the fund has $12.5 billion in liquid assets.
Should the fund need more liquidity to pay eligible claims, AB1054 allows for the issuance of revenue bonds by the state's Department of Water Resources.
Newsom's plan was floated to legislative leaders in Sacramento, but it has yet to be introduced as a bill and would require approval of the state Senate and Assembly, which are now in recess.
The proposal would create a continuation Wildfire Fund that would be capitalized at $18 billion with equal contributions from IOU shareholders and customers.
Customer contributions would come from a 10-year extension of an existing $3 surcharge on electric bills that expires in 2035. Shareholders of the three utilities would be required to immediately commit to collectively contribute an additional $9 billion to the new fund.
