California fire survivors say Newsom is quietly trying to shift utility wildfire costs to homeowners

California fire survivors and consumer advocates say a proposed late-session legislative package could leave residents paying a larger share of wildfire costs that would have otherwise fallen on utilities.

Homeowners worry the impact would hit Californians through higher insurance premiums, higher utility bills, or both — while people rebuilding after major fires could receive less compensation.

What's happening?

According to a CalMatters report, as republished by LAist, Gov. Gavin Newsom's office has been talking with lawmakers about wildfire recovery and the rising cost of catastrophic risk, but no proposed legislative text has been released publicly.

That absence of public information is a big reason advocates say they are alarmed.

CalMatters noted that Every Fire Survivors Network and Consumer Watchdog claim the proposal may contain provisions that would reduce compensation for victims of California wildfires, limit attorneys' fees, and prevent insurers from using subrogation to recover wildfire costs from utilities.

The outlet reported that the potential changes have also drawn warnings from insurance industry representatives, who often oppose consumer advocates but in this case say more of the burden would likely end up on policyholders.

Opponents are also criticizing the way the legislation could arrive. They say it may be advanced through a "gut-and-amend" tactic, which CalMatters described as taking an existing bill, swapping in new language late in the session, and then moving it quickly.

"Californians deserve a government that works in the open, not behind closed doors," said Joy Chen, leader of the Every Fire Survivors Network, as reported by CalMatters. 

Why does it matter?

Survivors and advocates say that reducing utilities' exposure to wildfire costs would not erase those expenses; it would shift them elsewhere, most likely onto households across California. They claim, as CalMatters reported, that one result could be more pressure on insurance premiums at a time when many residents are already struggling with affordability and finding coverage is getting harder.

Utility costs could rise too. According to CalMatters, an April California Earthquake Authority report recommended raising the utility surcharge by $8.50 a month to put more money into the state's wildfire fund, which would bring the total monthly charge to $11.

For places still trying to recover from deadly fires, those extra costs could make rebuilding more difficult.

Critics say the debate is also about accountability. If companies tied to wildfire risk have to pay less, they argue, there may be less incentive to spend on prevention, infrastructure upgrades, and grid safety measures that could help avert future disasters.

As Sen. Ben Allen said, as reported by CalMatters, "Any solutions that we have have to (hold) the responsible parties accountable."

The idea of a last-minute proposal has also made some legislators uneasy.

Sen. Sasha Renee Perez, who represents Eaton Fire survivors, told CalMatters she would have a "tremendous issue" with a bill introduced at the last minute that limits damages for victims. She also said she would oppose efforts to restrict non-economic damages for individuals who survived the fires, citing the deep emotional losses and human suffering many families have experienced.

And as Perez said, the human cost remains impossible to ignore: "How do you put a price tag on losing your sibling?"

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