Guest Editorial: Newsom Puts Utilities Ahead of Wildfire Victims: Press Democrat Editorial Board

Gov. Gavin Newsom wants the Legislature to decide how much California’s power companies should pay the next time their equipment burns down a town. The North Bay has the answer already: Every penny victims are owed for their losses and suffering.

In 2017, the Nuns Fire killed three people and tore through the hills above Glen Ellen in Sonoma County. Two years later, the Kincade Fire drove nearly 200,000 people from their homes. PG&E equipment sparked those and other wildfires. Cal Fire referred most of those cases to prosecutors for alleged violations of state law.

It took years and litigation for the company to pay for the damage it had caused. Some families still have not been made whole.

CalMatters reports that Newsom and his legislative allies believe utilities are asked to shoulder too much after a wildfire. It is an outrageous conclusion that insults every Californian who has watched a utility-sparked fire consume a home, not a basis for sound public policy.

Californians have buried neighbors, closed businesses, rebuilt homes, breathed poisoned air and flinched at every red-flag warning. They are the victims, not the utilities.

The specifics of Newsom’s plan remain murky. His office outlined its goals this month, but it has not provided any bills or other legislative language. What is known, however, is troubling.

The outline squeezes recovery from several directions. It would reduce what local governments could recover. Some fire victims would be limited to $150,000 in noneconomic damages. And insurers could not recoup all their losses.

The plan also would cap attorneys’ fees. That might not sound too bad, but lower rates for attorneys often mean fewer attorneys willing to take on these cases. Attorneys would not be needed at all if utilities paid promptly for the harm they cause.

And speaking of prompt payments, Newsom suggests a “fast pay” program to get money to claimants more quickly. They need only accept what’s offered and waive their right to file a lawsuit. What a deal.

Californians pay among the highest electricity rates in the nation. That is partly due to the cost of paying down wildfire debts, but it is not that alone. The three big utilities spent nearly $7 million in the first six months of this year lobbying the Newsom administration, the Legislature and their own regulators. Over four years, they have also dropped $5.2 million on political campaigns, trips for lawmakers and donations to officials’ favored charities.

This is not the first time Newsom and his legislative allies have sought to bail out utilities. In 2019, they created a $21 billion wildfire fund to cover some losses. Last year, they extended the ratepayer surcharge through 2045.

The Legislature adjourns Monday. Committees are no longer meeting to review new legislation. The only option is a gut-and-amend process with no hearings, no public testimony and no independent analysis. Legislation this controversial deserves thorough vetting, not a rush job so that a governor who might run for president can score a last-minute pro-business win.

North Bay elected officials who lived through devastating recent wildfires while advocating for fire victims know this ground better than almost anyone in Sacramento. They should refuse to move any liability package until the language is public and hearings are held, in January or in a special session if that is what it takes.