In one of his last political pushes as governor, Gov. Gavin Newsom wants to speed up payouts for wildfire victims. Critics say it helps utilities avoid accountability
The state’s three investor-owned utilities, Pacific Gas & Electric, Southern California Edison and San Diego Gas and Electric, aren’t in imminent financial danger and last year saw profits rise. But fire costs have contributed to Californians paying the second-highest electricity rates in the country, and lawmakers and Newsom’s office worry that if it becomes harder for utilities to borrow money those bills will continue to climb. The utilities together provide power for about three-quarters of the state.
Newsom and the lawmakers say utilities are held responsible for too much after a wildfire and that bad actors like hedge funds are taking advantage to get a cut. If another devastating wildfire triggers damages too high for a utility to pay, the potentially resulting bankruptcy would make it even harder for victims to collect.
Trickle down and too big to fail…
We’re fucked if it’s Newsome in 2028, because the incoming Dem president picks the DNC chair
He’s trying to keep electricity rates down for California residents (which are driven in part by wildfire costs). Is this the best way? I’m not sure. But if residents aren’t paying via electricity rates, they will pay another way. Insurance (if you can get it). Taxes (if voters will agree to it). Maybe other ways. None of them are that palatable.
Trickle down and too big to fail…
We’re fucked if it’s Newsome in 2028, because the incoming Dem president picks the DNC chair
And Newsom will take us back to neoliberals
He’s trying to keep electricity rates down for California residents (which are driven in part by wildfire costs). Is this the best way? I’m not sure. But if residents aren’t paying via electricity rates, they will pay another way. Insurance (if you can get it). Taxes (if voters will agree to it). Maybe other ways. None of them are that palatable.
They could tax insurance sales to high risk or high value properties. They’re the ones that will ultimately be the biggest burden in a fire anyway.
In reality the costs should fall on the utility companies that likely caused several of the fires. But that would raise prices for everyone.