California lawmakers side with wildfire victims, reject bill to limit utility payouts for fires

SACRAMENTO, Calif. (KABC) -- In Sacramento, state lawmakers have sided with wildfire survivors in a key vote. The California legislature rejected a bill that would have limited how much money people could recover from utility companies whose equipment ignited fires.

Lawmakers heard from those opposed to the proposed bailout for the state's three investor-owned utilities, including Southern California Edison.

SCE's equipment is blamed for the Eaton Fire.

Legislators instead amended the bill so that it does not cap damages. It also doesn't limit local governments and private businesses from recovering losses from utilities that start fires.

"It's important that we hold these companies accountable so all our fellow Californians can be safer," said Joy Chen, Every Fire Survivor's Network executive director. "So we are thrilled that our legislature stood up for utility accountability and stood up for the real fire survivors."

"The gut-and-amend legislation, authored by Senator Josh Becker and Assemblymember Cottie Petrie-Norris, rejects the harmful provisions proposed this summer and preserves survivors' fundamental rights to hold utilities accountable for the fires they cause," Consumer Watchdog said in a statement. "Instead, SB 492 establishes a Fast Pay program intended to help survivors receive compensation more quickly. Crucially, the final language allows survivors to file lawsuits and proceed with discovery, preserving the essential evidence-gathering that enables survivors, regulators, courts and the public to determine how a fire started and hold the responsible utility accountable."

Governor Gavin Newsom called the compromise on Senate Bill 492 "real progress." But he urged the Legislature to finish the work of stabilizing electric rates and securing the Wildfire Fund's long-term durability.