California Gov. Newsom Seeks $18B Boost for Utilities Wildfire Fund

California Governor Gavin Newsom is proposing legislation to add $18 billion to the state's wildfire fund to address the increasing costs and damages caused by wildfires, particularly following the deadly Eaton wildfire. The plan would have customers of California's three largest for-profit utilities—Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric—pay $9 billion through an extension of a surcharge on their monthly bills, while shareholders of these utilities would contribute the remaining $9 billion. This proposal has sparked criticism from consumer advocates concerned about rising utility costs and from utility executives opposed to shareholder contributions. The wildfire fund, originally established in 2019 with $21 billion, is at risk of depletion due to recent catastrophic fires that have highlighted infrastructure vulnerabilities, such as dry fire hydrants and depleted reservoirs. Newsom's office states the legislation aims to stabilize the fund to support wildfire survivors and protect utility consumers amid worsening wildfire seasons driven by climate change. Edison International, a major utility affected by the proposal, continues to face financial pressures but maintains steady revenue growth amid these challenges.