All articles tagged with #sb 492
Senate Bill 492, a last-minute compromise to speed wildfire payouts, failed to pass the California Assembly on Tuesday. The bill, which omitted Governor Newsom’s demand to shift costs to insurers, was rejected by lawmakers who deemed it insufficient. Utility stocks rebounded after a sharp Monday drop, while survivors and consumer groups criticized the outcome as a utility bailout.
The California Assembly rejected a last-minute wildfire liability bill on Tuesday, ending a contentious legislative session without passing the compromise. The measure, which included fast-pay programs for victims and restrictions on utility CEO bonuses, failed to secure the necessary two-thirds majority. Governor Gavin Newsom criticized the outcome as insufficient, while legislators cited gaps in the proposal and opposition to limiting insurance companies' rights to recover costs from utilities.
California Governor Gavin Newsom blamed insurance companies and hedge funds for blocking his comprehensive wildfire liability overhaul, resulting in a narrowed compromise that failed to protect investor-owned utilities. Consequently, PG&E and Edison International stocks plummeted by 20% and 23% respectively, with utilities losing over $20 billion in market value since Thursday. The final legislation, SB 492, includes measures to ban utility executive bonuses after major fires and restrict hedge fund involvement in claims, but it excludes the key provision that would have barred insurers from recouping losses from utilities. Newsom acknowledged the market reaction as an 'outsized' impact of the compromise, while utility CEOs warned that the lack of liability protection will lead to higher bills and reduced investment. The issue remains unresolved for the next administration, with Democrats expected to face continued pressure to address the financial risks facing the state's power grid.