California to boost utility wildfire fund by $18 billion

"The move confirmed earlier reporting from Bloomberg News. 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. Potential liabilities from fires in the state have increased risks for utilities such as Edison International and PG&E Corp. 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."

California lawmakers filed an initial agreement to add roughly $18 billion to the state's wildfire utility fund, with ratepayers and utility shareholders each covering half. The measure was entered into legislative text after a suspended deadline and aims to stabilize utilities' finances and limit shareholder losses. The action follows January wildfires that strained the California Wildfire Fund and heightened liabilities for utilities such as Edison International and PG&E Corp. The fund, created in 2019 after the Camp Fire, is a $21 billion backstop with more than $13 billion in assets and covers damages exceeding $1 billion. The deal needs legislative approval and the governor's signature.

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