Newsom Cites Insurers, Hedge Funds and Trial Lawyers After Wildfire Liability Plan Is Narrowed
Governor Gavin Newsom has attributed the defeat of a major wildfire liability overhaul in California to "Big Insurance," hedge funds, and trial attorneys. He stated that these "outside groups" spent millions of dollars against his proposal, which aimed to limit the costs utilities face after wildfires. Newsom acknowledged the unpopularity of assisting investor-owned utilities but emphasized the economic reality, noting that news of a narrowed deal caused Pacific Gas & Electric and Southern California Edison stocks to plummet by 20% and 23% respectively. The final compromise legislation, reached after Democratic lawmakers gutted the most ambitious parts of Newsom's initial plan, includes measures to prevent hedge funds from profiting from wildfires, deny bonuses to utility CEOs after company-ignited blazes, and expedite payments to fire survivors. However, it did not include provisions to bar insurers from suing utilities or prevent cities and counties from recovering infrastructure replacement costs from p... 
