California Electric will pay $9 billion in fees to cover the state’s wildfire fund, which was concluded at the last minute deal Wednesday as legislation introduced.
Southern California Edison and two other large for-profit electric companies in the state have been lobbying Gov. Gavin Newsom and legislative leaders to urge them to pass legislation to supplement the state’s $21 billion fund to cover the damage caused by the fires caused by the utilities.
State officials warned that the fund could be compensated for damages from the Eaton fire, which killed 19 people and destroyed a large area of Altadena on Jan. 7.
Clients of the three utilities have contributed $10.5 billion to the original fund through a monthly bill of about $3 surcharge.
If approved, the bill amendment made on Wednesday will allow customers to include surcharges in the 10 years before 2035, which will expire soon.
Shareholders of the three power companies will also pay an additional $9 billion to the fund, according to the transaction. This means that if the legislation (called SB 254) passes, the fund will add $18 billion.
Consumer advocates and environmentalists track the bill said they are still trying to understand all the provisions of the 229-page bill that has been debated at hearings in recent months, but then major changes were made without public input. A new draft of the bill was released Wednesday at 9:12 a.m.
“It’s a complete intuition and correction,” said Bernadette del Chiarro, senior vice president of the Environmental Working Group. “This is the ending around the normal legislative process.”
The complex proposal was made days before the end of the state legislature, meaning it may be rarely subject to public debate.
The meeting is scheduled to end on Friday, but any amendments must be made public within 72 hours, which will push the vote to Saturday morning.
Mark Toney, executive director of the Consumer Group Utilities Reform Network, said he was disappointed with the taxpayers who have paid the country’s second-highest electricity price (who already had to pay more). But he pointed out some measures that could help alleviate the upward pressure on bills.
For example, utilities will be needed to finance some expensive transmission projects through public financing methods that lawmakers say can save $3 billion.
Tony said his team plans to support the bill after reviewing the language of the bill, even if it “cannot resolve the growing affordability crisis.”
The bill’s co-authors’ conference raised Cottie Petrie-Norris (D-Irvine) to defend the last-minute amendment, saying the legislature needs to act quickly to strengthen the fund as the wildfire season begins in California.
Many of the provisions added to SB 254, including public financing for transmission lines, were included in other bills that were repeatedly debated at public hearings, she said.
Petrie-Norris, chairman of the Parliament’s Public Affairs and Energy Commission, defended the process and said she believes power customers got “a good deal” as the fund increased by half of $18 billion, which would come from utility shareholders.
She said that under the plan, the three utilities must spend billions of dollars in preventive expenses, which they cannot make a profit.
Shares of Edison International, Pacific Gas & Electric, and Sempra, the parent company of San Diego Gas & Electric, rose Wednesday.
Newsom and lawmakers created the state wildfire fund in 2019 through a bill called AB 1054, which protects three utilities from bankruptcy amid the catastrophic wildfires of its wires.
Under the legal protections, if the equipment from the Eaton fire was found to cause a fire, Edison did not have to pay or was just a small part of the damage.
A representative for Newsom did not immediately respond to a request for comment.
An investigation into the fire is underway. Edison said Main Theory It was that century-old transmission line, which had not been used since the 1970s, reignited and sparked the fire in some way.
Property losses based on insurance may be as high as $15.2 billion. estimate Posted by state officials in July. This amount does not include uninsured losses or damages other than the property, such as a claim for illegal death. A UCLA study estimated losses of $24 billion to $45 billion.
Damage to the Palisades Fire was also ignited on January 7, not covering the state wildfire fund. The Los Angeles Department of Water and Electricity is a municipal utility that provides the Pacific Palisades area that was destroyed by the fire.
Only Edison, PG&E and San Diego gas and electricity bill customers can support the Wildfire Fund. And only these three utilities are covered by their protection.
