California's Assembly easily passes legislation that will overhaul the state's method of paying for utility wildfire damages, creating a $21B fund to help power companies pay claims arising from future wildfires linked to their equipment.
California Gov. Newsom is expected to sign the bill, which the state Senate passed earlier this week.
Newsom pushed the bill through the Legislature in response to threats from credit ratings agencies to downgrade the state's power companies - PG&E (NYSE:PCG), Southern California Edison (NYSE:EIX) and San Diego Gas & Electric (NYSE:SRE) - if lawmakers failed to act this week.
The bill offers two different models of wildfire funds to help utilities pay for claims, although both options would extend an existing fee on electricity bills to generate $10.5B from ratepayers.
Subscribe for full text news in your inbox