There’s been no shortage of criticism for Gov. Gavin Newsom’s plan to help California’s largest utilities stave off bankruptcy from costs associated with wildfires.
A home burns as the Camp fire rages through Paradise, Calif., on Nov. 8, 2018. Gov. Gavin Newsom wants to tap ratepayers for $10.5 billion to help utilities deal with costs they face when found responsible for igniting wildfires.
The legislation marks Newsom’s most consequential effort yet to leverage his political power in enacting major legislation, with his reputation on the line. Lawmakers from both parties share concerns about any proposal that could be cast as a gift to power companies that have been responsible for wildfires in their communities. Newsom’s plan would take, which critics say is an unfair burden for electricity customers with no guarantees that the corporations will operate their systems safely.
Doing nothing would be “a catastrophic consequence to ratepayers, and I think most objective people that have looked at this would say that’s the option that will most impact customers,” Newsom said last week. “None of this is easy. I took the oath of office with this predicament, and sort of inherited a challenge here. I’m not trying to defer responsibility. Quite the contrary, I’ve owned this.”
A company that earned a safety certification before wildfire season would be allowed to dip into a wildfire fund, supported from the $10.5 billion from ratepayers and at least another $10.5 billion from the utilities. “The Takings Clause says you can’t take someone’s property without due process of law and making me prove that you don’t have a right to my money is not due process,” Aguirre said about the money ratepayers will be forced to contribute to the wildfire fund.
“The bill, as currently crafted, protects utilities and provides them with an opportunity to stay somewhat solvent, but it doesn’t provide any protection for the folks who are also going to be contributing through the continuation of a fee toward that fund,” Gordon said.
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