"The boost will be around $18 billion, according to people familiar with the negotiations who asked not to be named because the information is private. The agreement would see ratepayers contribute half of the money and utility shareholders contribute the other 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 Fund at risk of being depleted."
"Established in 2019 after liabilities from the Camp Fire and other blazes sent PG&E into bankruptcy, the $21 billion fund 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. The deal will still need to be voted on by both state legislative chambers in Sacramento and signed by Gov. Gavin Newsom. Shares of Edison International jumped as much as 3.1% on the news, before paring gains."
An initial agreement calls for roughly $18 billion to be added to the California Wildfire Fund, with ratepayers providing half and utility shareholders the other half. The infusion is intended to shore up utility finances and limit shareholder losses after January wildfires threatened to deplete the fund. The fund, created in 2019 with a $21 billion cap, holds more than $13 billion and covers investor-owned utilities for fire damages exceeding $1 billion. The proposal requires approval from both legislative chambers and the governor, and utility shares rose on the news before moderating.
Read at The Mercury News
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