The "consequences" Newsom refers to is the fact that SCE and PG&E collectively lost $20B yesterday in market value following a massive stock sell off when the Legislature rejected Newsom's proposal for a $6B cap on a utility's liability, elimination of insurers' right of subrogation against utilities, and limitations on fire victims' right to recover economic and non-economic damages.
The “consequences” that fire victims have had to endure from the fires caused by these utilities is unspeakable. Over the past ten years, SCE & PG&E have caused the following devastating wildfires:
Pacific Gas and Electric:
Wildfire Deaths Structures
Camp Fire85 ~18,804
Tubbs Fire22 5,643
Dixie Fire 1 1,329
Zogg Fire 4 204
Kincade Fire 0 374
Southern California Edison
Wildfire Deaths Structures
Eaton Fire 19 9,418
Woolsey Fire 3 1,643
Thomas Fire 2 1,063
To recap, PG&E has destroyed a total of 26,359 structures and killed 112 people. SCE has destroyed 12,124 structures and killed 24 people, plus an additional 22 persons who died in the Montecito debris flow as a result of the Thomas Fire.
These utilities already benefit from Newsom's existing bailout with the California Wildfire Fund, which provides $21B to pay for wildfire damages and an additional $18B on top of that for post 2025 wildfires. And by law these utilities are guaranteed a 10% rate of return each year.
You want to know the simplest and least costly solution to California's wildfire problem? Utilities need to stop causing these massively destructive and deadly fires! Every one of the fires listed above was determined by Cal Fire to have been caused by one of these two utilities.
Yet despite causing so much devastation, these utilities continue to focus on paying dividends to their stockholders instead of upgrading their equipment and performing badly needed maintenance on their aging infrastructure. For example, SCE has paid quarterly dividends for the past 20 consecutive quarters without interruption between 2021-2026. Meanwhile, SCE’s CEO Pedro Pizarro enjoyed a 21.5% salary increase in 2022-2023 and a 19.5% increase in 2024-2025.
The only way these utilities will embrace a systemic sea change in preventing wildfires is if economic pressure forces them to do so. Hopefully, Monday’s “consequences” are the catalyst for that change.
@spencerpratt @ZavalaA @joelpollak @Hotshot_Movie @JeremyCom