Gavin Newsom to bail out utilities — and hurt fire – Latest News
Gavin Newsom is ending the final two weeks of his final legislative session as governor by demanding a bailout for the state’s three for-profit utilities, which have given his campaigns and causes practically $1 million during his time period.
The governor’s murky plan goals to restrict the power of wildfire victims, and their insurance coverage corporations, to recuperate damages from utility corporations that begin wildfires.
The plan claims to put “Wildfire Survivors First,” in accordance to his truth sheet, however it’s opposed by each reliable wildfire survivor group.
The utility corporations back the governor’s plan and they’re offering the funding for a phony coalition referred to as “Wildfire Victims First” — insane doublespeak, provided that the three utilities induced eight of the 20 worst wildfires in California historical past.
The Palisades Fire ravages a neighborhood amid high winds within the Pacific Palisades neighborhood of Los Angeles on Tuesday, Jan. 7, 2025. (FR171736 AP) AP
Governor Gavin Newsom speaks during an occasion about new financial savings for California car consumers and a main milestone within the state’s clean power future on Friday, August 7, 2026, on the Bridge Yard Facility in Oakland, California. (2026 Anadolu) Anadolu through Getty Images
The utilities refuse to discuss publicly in regards to the proposed “reforms,” letting Gov. Newsom and the “Wildfire Victims First” coalition do it for them — together with by $3.5 million in tv advertisements launching throughout California within the coming weeks.
The spokesman for “Wildfire Victims First” is Nathan Click, Newsom’s former spokesman, and the TV advert maker is Bearstar, Newsom’s political advisor.
The speaking factors of the advertisements — that insurance coverage corporations, hedge fund managers and attorneys are taking wildfire survivors’ money — are precisely the speaking factors from the governor’s “fact sheet.”
Real wildfire survivors, native governments, shopper teams and insurance coverage corporations all oppose the plan, as a result of it could restrict residents’ rights to recuperate damages for fires began by utilities.
A firefighter battles the Palisades Fire because it burns during a windstorm on the west aspect of Los Angeles, California, on Tuesday, Jan. 7, 2025. (REUTERS) REUTERS
Thousands of burned properties are seen in an aerial view following the Eaton fire within the Altadena space of Los Angeles County, California, on Tuesday, January 21, 2025. Fire officers launched a report confirming that utility Southern California Edison was answerable for the blaze, which killed 19 people and broken hundreds of properties and buildings. (AFP or licensors) AFP through Getty Images
The definition of bailout is rescuing an entity from financial bother. Newsom’s transfer is a textbook bailout within the final days of the legislative session, backed up by a silent menace to veto payments by legislative dissenters when there’s little time for scrutiny of his proposals.
Utilities don’t need a bailout. When Newsom signed a law in 2019 to create a $21 billion wildfire fund to shield utilities, Pacific Gas & Electric (PG&E) was in chapter. In 2025, the 12 months Edison apparently induced the Eaton fire, which killed no less than 19 people and shattered tens of hundreds of lives, Edison reported $4.5 billion in earnings (triple the 12 months earlier than), $1.4 billion in shareholder dividends and CEO compensation of $16.5 million.
Sign up for the California Morning Report publication
California’s high information, sports activities and leisure delivered to your inbox daily.
Thanks for signing up!
Protecting for-profit utilities from the prices of fires they trigger by their negligence simply ensures more neglicence and more fires. After Newsom’s 2019 bailout, Edison didn’t have to fear about paying for fires its gear began. A new authorities report simply discovered the Eaton fire was sparked by an deserted transmission line that Edison didn’t take away.
A coalition of insurers, native governments, fire survivors, attorneys and shopper teams has written to the state legislature to urge it to oppose Newsom’s proposal.
Workers with Southern California Edison take away a utility pole broken by the Eaton Fire in Altadena, Calif., Sunday, Jan. 12, 2025. (Hearst Newspapers) San Francisco Chronicle through Getty Images
Governor Gavin Newsom speaks during an occasion about new financial savings for California car consumers and a main milestone within the state’s clean power future on the Bridge Yard Facility in Oakland, California, on Friday, August 7, 2026. (2026 Anadolu) Anadolu through Getty Images
A Southern California Edison truck is seen as employees work on repairing and restoring energy traces on Monday, January 13, 2025, in Altadena, California. An investigation later confirmed that utility Southern California Edison was answerable for the Eaton Fire that killed 19 people and broken hundreds of properties in January 2025. (AFP or licensors) AFP through Getty Images
“Strong liability standards encourage utilities to invest in system hardening, vegetation management, grid modernization, and prudent operational practices,” the teams wrote. “Weakening accountability sends exactly the wrong signal by reducing the financial consequences when utility equipment causes catastrophic destruction.”
State Sen. Ben Allen, a Democrat who represents the world burned by the Palisades fire, lately raised issues that utilitiy corporations have reportedly taken to bailout blackmail.
The chief executives of PG&E and Edison each reportedly steered on latest buyers calls that if Newsom and the Legislature don’t bail them out, they’ll take steps to shield their own shareholders, intimating they’d buy back stock reasonably than invest in infrastructure enhancements.
Allen, who represents fire-ravaged Pacific Palisades and the chair of the state Senate’s Energy Committee, Ben Allen, lately wrote the CEOs to query them.
“To read that the state’s largest investor-owned utility companies might be threatening to harm service to Californians if they don’t get the outcomes they seek on liability reform in the Legislature does not bode well for a cooperative approach,” Allen wrote.
Shame on Gavin Newsom for backing up the utilities’ bailout blackmail. He ought to stand with Californians and actual wildfire victims as a substitute.
Jamie Court is the president of the nonprofit advocacy group Consumer Watchdog.
Download The California Post App, observe us on social, and subscribe to our newsletters
California Post News: Facebook, Instagram, TikTookay, X, YouTube, WhatsApp, LinkedIn
California Post Sports Facebook, Instagram, TikTookay, YouTube, X
California Post Opinion
California Post Newsletters: Sign up right here!
California Post App: Download right here!
Home supply: Sign up right here!
Page Six Hollywood: Sign up right here!
