Electric customers to pay $9 billion more to state wildfire fund under proposed bill

"California electric customers would pay $9 billion more to shore up the state's wildfire fund under a last-minute deal reached behind closed doors that was introduced as legislation on Wednesday. Southern California Edison, and the state's two other large for-profit electric companies, had been lobbying Gov. Gavin Newsom and legislative leaders, urging them to pass legislation to replenish the state's $21-billion fund that pays for damages of utility-caused fires."

"State officials have warned the fund could be wiped out by damages from the Eaton fire, which killed 19 people and destroyed a large swath of Altadena on Jan. 7. Customers of the three utilities are already on the hook for contributing $10.5 billion to the original fund through a surcharge of about $3 on their monthly bills. If approved, the bill amendments made on Wednesday would have customers pay $9 billion more by extending that surcharge by 10 years beyond 2035, when it was set to expire."

"Under the deal, the three electric companies' shareholders would also pay an additional $9 billion into the fund. That means the fund would increase by $18 billion if the legislation, known as SB 254, passes. Consumer advocates and environmentalists tracking the bill said they were still trying to understand all the provisions of the 229-page bill, which had been debated in hearings in recent months, but was then significantly amended without public input. The new draft of the bill was published at 9:12 a.m. on Wednesday. "It's a complete gut and amend," said Bernadette Del Chiaro, senior vice president at the Environmental Working Group."

Legislation introduced would require California electric customers to pay $9 billion more to refill the state wildfire fund, extending an existing surcharge by 10 years beyond 2035. The three large for-profit utilities already collected $10.5 billion via a roughly $3 monthly surcharge to fund the $21-billion wildfire fund. State officials warned that damages from the January Eaton fire could exhaust the fund. The proposed deal would also obligate shareholders of the three utilities to contribute an additional $9 billion, bringing potential replenishment to $18 billion. Consumer advocates criticized the 229-page bill for late, significant amendments and minimal public input.

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