Newsom Considers Special Session Over Utility Wildfire Liability

Governor Gavin Newsom is considering calling a special legislative session following the November 3 election to resolve a dispute over wildfire liability for investor-owned electric utilities. Newsom argues that full liability for utilities increases consumer power bills and hinders their ability to borrow money and attract investment.

Newsom previously sought a comprehensive overhaul to shift more financial burdens onto wildfire victims and their insurers. After failing to secure enough legislative votes for the full plan, he settled for Senate Bill 492, a limited measure that caps attorney fees and accelerates insurance payments to victims. He now aims to revisit the broader liability reduction to stabilize ratepayer costs.

Pacific Gas and Electric Co. CEO Patricia K. Poppe expressed optimism that upcoming Assembly hearings and a California Public Utilities Commission report will support the governor's proposal. However, the utility has announced it will stall new power hookups until the liability issue is settled. Jamie Court, president of Consumer Watchdog, condemned this move as "bailout blackmail."