{"id":731,"date":"2026-08-28T09:37:59","date_gmt":"2026-08-28T09:37:59","guid":{"rendered":"https:\/\/frontierhousingreport.com\/?p=731"},"modified":"2026-08-28T09:37:59","modified_gmt":"2026-08-28T09:37:59","slug":"wildfire-survivors-push-back-against-newsom-led-utility-bailout","status":"publish","type":"post","link":"https:\/\/frontierhousingreport.com\/?p=731","title":{"rendered":"Wildfire Survivors Push Back Against Newsom-Led Utility Bailout"},"content":{"rendered":"
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Time and time again, California\u2019s big three investor-owned utilities have attempted to shift the cost of their own incompetence to ratepayers in the aftermath of wildfires they have been proven to cause. Now, state leaders in Sacramento have spent the final days of the eight-month legislative session racing against the clock to codify that financial dodge, and what is essentially a utility bailout, into law.<\/p>\n

Read more Troy Jackson Is Looking Forward<\/a><\/p>\n

Democratic presidential hopeful and outgoing Gov. Gavin Newsom has devised the plan and shepherded it through closed-door negotiations. Based on what we know, it would limit claims that victims of utility-caused fires can bring against utilities, block insurers from recouping losses through a process of seeking payouts from liable third parties called subrogation, and make it harder for survivors to access representation by capping attorneys\u2019 fees.<\/p>\n

More from James Baratta<\/strong><\/em><\/p>\n

Newsom\u2019s rationale for the bailout is that utilities are so weighed down with litigation and liability that they cannot invest in infrastructure and additional power resources, leading to squeezes in supply and higher prices. But a coalition of fire survivors, consumer advocacy groups, local governments, trial lawyers, and insurers who first sounded the alarm on the governor\u2019s plan earlier this month have challenged this narrative.<\/p>\n

A key actor among those taking a stand is Every Fire Survivor\u2019s Network (EFSN), a survivor community that has proposed its own alternative to the governor\u2019s wildfire utility bailout. Joy Chen, executive director at EFSN, has pushed back on the Newsom administration\u2019s claim that the California Wildfire Fund, a statutory account that is supposed to be available to victims so they don\u2019t have to wait for utility payouts, \u201cwill soon be depleted.\u201d According to modeling cited by EFSN, the Wildfire Fund has $38 billion in payment capacity, and estimated claims of $10 billion to $15 billion. Chen said the Newsom administration has not produced any data or refuted that modeling. \u201cThere\u2019s no financial emergency that justifies an eleventh-hour bailout,\u201d she told the Prospect<\/em>.<\/p>\n

Lawmakers in Sacramento countered Newsom\u2019s plan with their own legislative package this week. While there are still gaps, Chen commended the legislature for \u201cstanding up against the bailout.\u201d According to EFSN, the package could be introduced as late as 11:30 p.m. tonight. The deadline for legislative amendments is at midnight.<\/p>\n

\u201cIt is now past the eleventh hour [in] an eight-month legislative session,\u201d said Chen. \u201cIt is so late now that if something does go into print, there will be no time to do any amendments at all.\u201d<\/p>\n

FOLLOWING THE CAMP FIRE<\/strong> in 2018, Pacific Gas & Electric Company (PG&E) voluntarily entered bankruptcy to shield itself from tens of billions of dollars in liabilities. Survivors found themselves in limbo, waiting years for compensation that would later come in the form of a $13.5 billion settlement. PG&E pleaded guilty to 84 counts of involuntary manslaughter and one felony count of unlawfully causing a fire, which was the deadliest in the state\u2019s history and sparked by a downed transmission line.<\/p>\n

In June 2021, the utility went before the California Public Utilities Commission (CPUC) seeking a rate increase. The two-year proceeding ended in November 2023, with billions of dollars in wildfire mitigation funding for PG&E. Customers saw their monthly bills increase by 13 percent.<\/p>\n

More than a decade earlier, poorly maintained transmission lines owned by San Diego Gas & Electric (SDG&E) ignited the 2007 Witch Creek Fire, which caught up with a separate wildfire that was already blazing to the west. Two people died in the Witch Creek Fire, and over 1,000 homes were destroyed. SDG&E paid out roughly $2.4 billion to settle lawsuits brought against the utility for its role in sparking fires across the state that year. The company fought for years to stick customers with the bill, but the CPUC rejected its request to recover $379 million in losses through rates in 2017. (SDG&E unsuccessfully appealed the decision.)<\/p>\n

Electric arcing on an out-of-service tower owned by Southern California Edison (SCE) caused the Eaton Fire, which killed 19 people and incinerated thousands of homes and small businesses, in January 2025. While the utility has yet to file an application with the CPUC to review the costs of the Eaton Fire, SCE\u2019s latest Form 10-Q filing with the Securities and Exchange Commission indicates that it will. The utility, which exhausted its self-insurance coverage for the Eaton Fire in February, plans to seek recovery of uninsured losses \u201cthrough electric rates.\u201d<\/p>\n

Across California, ads have been running for weeks in support of the proposed bailout. According to a report from the California-based advocacy group Consumer Watchdog, many of those ads were bought and paid for by Wildfire Victims First, a utility-funded front group whose spokesperson and director is Nathan Click, a former Newsom communications director. The media company behind the front group\u2019s television ads, Polaris Campaign Media, is the affiliated media-buying firm of Bearstar Strategies, Newsom\u2019s political consulting firm as well as the force behind Xavier Becerra\u2019s unlikely nomination to replace Newsom.<\/p>\n

\u201cSixty-six percent of Wildfire Victims First members receive direct utility funding, while dozens maintain governance ties through utility executives and government affairs officials serving in leadership positions,\u201d the Consumer Watchdog report explains.<\/p>\n

Read more Why Are We (and Were We) in Vietnam?<\/a><\/p>\n

Consumer Watchdog found that PG&E, SDG&E, and SCE spent nearly $17 million lobbying state lawmakers in the first six quarters of the 2025-2026 legislative session, representing \u201cthe highest lobbying total of the Newsom administration and of all time.\u201d The state\u2019s big three for-profit utilities gave approximately $1 million to the governor\u2019s campaigns and causes during his term.<\/p>\n

Several utility-aligned environmental groups, including the Environmental Defense Fund and Natural Resources Defense Council, recently placed an outlining their vision for a potential wildfire package. As Consumer Watchdog observed, the common thread running through the different groups is the Energy Foundation. Alongside the Energy Action Fund, its 501(c)(4) counterpart, the Energy Foundation \u201cdominated funding for activist groups, helping ensure that their lobbying on energy issues took a \u2018pro-business, pro-deregulation and pro-private-utility stance.\u2019\u201d<\/p>\n

Real fire survivors have lamented the distastefully named Wildfire Victims First front group, taking to the streets and even the governor\u2019s mansion to make their voices heard. \u201cWe are the real fire survivors,\u201d Chen told the Prospect<\/em>.<\/p>\n

On Tuesday, dozens of community members gathered in Sacramento, sharing survivor stories and meeting with state lawmakers. Assemblymember Isaac Bryan (D), who represents West and South Los Angeles, spoke to the long-standing trauma shared by victims of the Eaton Fire, pointing the finger at SCE for its role in sparking the blaze.<\/p>\n

\u201cWe cannot forget about Altadena,\u201d Bryan said. \u201cWe cannot forget about the people who lost their lives. We cannot forget about the Black homeownership that was lost and must be regained. And we have to remember who caused that fire. It was arson, but a different type of arson. Utility arson.\u201d<\/p>\n

The phrase \u2018No Lines Between Survivors\u2019 crystallized at Tuesday\u2019s gathering. Chen, who was forced to evacuate with her family during the Eaton Fire, scrutinized a provision included in the legislature\u2019s counterproposal that would arbitrarily preclude survivors from being eligible for compensation. That provision would use a fire perimeter to determine eligibility. \u201cA fire perimeter maps a fire. It does not measure actual harm,\u201d she said.<\/p>\n

The Eaton Fire ripped through the backyards of row homes on the north side of Chen\u2019s property, where she has a chicken coop. The perimeter line cuts directly through the property, meaning her house is outside the perimeter line, and the chicken coop is inside it. Under the aforementioned provision, Chen would likely not be eligible for compensation on damages to her home. Most smoke-damaged homes would be excluded as well, she said.<\/p>\n

\u201cSomebody 400 feet away from me died,\u201d Chen told the Prospect<\/em>. \u201cWe could have died or been injured, and my house could have burned down, but we just got incredibly lucky.\u201d<\/p>\n

California\u2019s big three for-profit utilities have seen their profits and executive pay soar in recent years. In 2025 alone, PG&E, SCE\u2019s parent company Edison International, and Sempra, which owns SDG&E, paid their CEOs nearly $60 million, issued more than $3 billion in dividends, and raked in over $10 billion in profits, according to EFSN.<\/p>\n

\u201cCalifornia does not have a wildfire liability problem. California has a catastrophic fire causation problem,\u201d Chen said. \u201cThree for-profit electric monopolies keep burning down California communities, and have now made California the world\u2019s most dangerous place for catastrophic wildfires.\u201d<\/p>\n

Read more Anthropic (Re-)Enlists for War<\/a><\/p>\n<\/div>\n


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Time and time again, California\u2019s big three investor-owned utilities have attempted to shift the cost of their own incompetence to ratepayers in the aftermath of wildfires they have been proven to cause.<\/p>\n","protected":false},"author":1,"featured_media":730,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[359],"class_list":["post-731","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy-and-the-environment","tag-tagged-bailouts-california-cities-communities-electric-utilities-energy-the-environment-gavin-newsom-public-utility-commissions-state-legislature"],"yoast_head":"\nWildfire Survivors Push Back Against Newsom-Led Utility Bailout - Frontier Housing Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/frontierhousingreport.com\/?p=731\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wildfire Survivors Push Back Against Newsom-Led Utility Bailout - 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