PG Seeks Legislation to Cap Wildfire Payouts, Potentially Increasing Customer Bills
California's largest utilities, including PG&E, San Diego Gas & Electric, and Southern California Edison, are proposing legislation that would cap shareholder payouts for wildfire damages, even in cases of utility negligence. Under this proposal, the maximum amount shareholders would be required to pay would be one-fifth of each company's transmission and distribution equity rate base. For PG&E, this limit would be $5.1 billion. Any costs exceeding these shareholder caps would be recouped through higher electricity bills for customers. The proposed legislation also seeks to make this shareholder cap permanent, removing its current expiration trigger, which is the exhaustion of California's $21 billion wildfire fund and an additional $18 billion reserve. This move follows the January 2025 Eaton fire, which left thousands homeless and prompted utilities to seek greater financial protections. Consumer Watchdog President Jamie Court has argued that these proposed protections would diminish incentives for utili...