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Subrogation

All articles tagged with #subrogation

business1 month ago•21 min saved

PG&E slashes $2B in 2027 spending as California wildfire liability fight stalls

Pacific Gas & Electric (PG&E) announced a $2 billion reduction in its 2027 capital spending plan, citing the financial burden of California’s current wildfire-liability rules. This move follows the collapse of a legislative compromise (SB 492) that would have limited utility liability for fires sparked by their equipment. The failed deal, which Governor Gavin Newsom attempted to push through in a last-minute legislative 'jam,' resulted in a 20% drop in PG&E stock and intensified tensions between utilities, insurers, and state lawmakers over who should bear the costs of catastrophic wildfires.

via New York Post|

#business #california-wildfires #gavin-newsom

politics1 month ago•21 min saved

Newsom's final legislative push on wildfire liability collapses as Democrats reject subrogation reforms

Gov. Gavin Newsom’s final major legislative push failed as the California Assembly killed a compromise bill on wildfire liability. The governor sought to limit insurance companies' ability to sue utilities for costs after fires, but lawmakers rejected the measure, calling it insufficient. Newsom acknowledged the failure, noting the bill did not address the structural crisis, and left open the possibility of a special session before he leaves office in January.

via CalMatters|

#california-legislature #gavin-newsom #investor-owned-utilities

energy-and-utilities1 month ago•16 min saved

California Lawmakers Reject Newsom’s Wildfire Liability Overhaul, Leaving PG&E Exposed

California Democratic lawmakers rejected Governor Gavin Newsom’s comprehensive plan to shield utilities from wildfire liabilities, resulting in a narrower compromise that leaves PG&E exposed to financial risk. The stock of PG&E and its parent company, Edison International, plummeted as the final legislation failed to include the broad protections utilities sought, marking a rare legislative defeat for the governor.

via Barron's|

#california-legislature #energy-and-utilities #gavin-newsom

politics1 month ago•3 min saved

California lawmakers derail Newsom plan to shield utilities from wildfire costs

California lawmakers blocked Gov. Newsom’s bid to end insurers’ subrogation against investor-owned utilities after wildfires, with negotiations collapsing and Democrats wary of shifting wildfire costs to insurers; a phased approach was proposed but not accepted as the legislative session neared its Aug. 31 deadline, while other wildfire-liability measures remained under discussion.

via KCRA|

#california #insurance #newsom

business1 month ago•3 min saved

Insurers warn Newsom wildfire plan could push up California homeowners' premiums

CEOs from 15 major insurers warn Gov. Newsom’s plan to end (and gradually phase out) subrogation for wildfire losses could raise homeowners’ premiums statewide and destabilize California’s insurance market. The updated proposal would still eliminate the right to recoup losses from utilities, with rate impacts potentially tied to future regulatory approvals; writing is due by Friday as the legislative session winds down, and critics argue costs could spike, especially in high-risk areas.

via KCRA|

#business #california #insurance