Eaton fire could be first big test for California wildfire fund created to keep utilities out of bankruptcy

The California Wildfire Fund, established in 2019, is being challenged by the aftermath of the Eaton fire, which has left 17 dead and destroyed over 9,400 structures. If Southern California Edison is found liable for starting the fire, they can access the fund to avoid bankruptcy, similar to Pacific Gas & Electric's past situation. This scenario represents a significant test for the fund, which has $12 billion in liquid assets but approved for up to $21 billion. Legal actions against SCE are mounting, raising questions about the fund's utilization and future.

If Southern California Edison is found to have ignited the Eaton fire, the utility would be eligible to tap the state fund to avoid the same fate as PG&E.

This (Eaton) fire is going to be the first pressure test for the California Wildfire Fund, predicted attorney Alexander Robertson, whose firm is suing SCE.

Read at The Mercury News