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SACRAMENTO, Calif. (CA) – A California commission to study forest fire costs said Friday that lawmakers should rethink the legal standard that forces utilities to assume financial responsibility for equipment fires. even if they did nothing wrong.
However, lawmakers have continued to question any proposal that could be considered a bailout for Pacific Gas & Electric Corp., which filed for bankruptcy earlier this year as it faces billions of dollars of victim claims. State investigators have recently determined that PG & E equipment had triggered the fire that almost destroyed a city in northern California.
"This is a vote on which politically many of our members feel embarrassed," said Assembly Speaker Anthony Rendon, a Lakewood Democrat.
He added that although some utilities, such as San Diego Gas & Electric, have operated responsibly in the event of wildfires, PG & E has not done so. The public service is under judicial supervision after a criminal conviction for a 2010 gas pipeline explosion that killed eight people. He has been blamed for some of the most deadly and destructive forest fires in recent years.
"Changing the responsibility of the whole sector, including PG & E, which has done everything wrong, in the last ten years, is something for which our members, for good reasons, do not feel well" said Rendon.
Members of the California Disaster Catastrophe Commission, however, argued that the current system would result in the bankruptcy of utilities.
"Utility bankruptcies will make vexable those who have already suffered a huge loss," said Dave Jones, commission member and former state insurance commissioner.
Lawmakers created the commission last year in the wake of the 2017 destructive forest fire season, asking it to assess how the state can prevent forest fires and spread the cost damage when they occur.
Its members discussed Friday their final report, which included other recommendations to legislators, such as changing insurance policies to encourage homeowners to better protect their property and creation. a state board to oversee prevention efforts in the large state.
The report also called for the creation of a catastrophic firefighting compensation fund, an idea already envisioned by the legislature.
Nevertheless, some members said that their proposals would probably not go far in the state of Capitol. Governor Gavin Newsom, Rendon and Senate Speaker, Pro Tempore Toni Atkins, quickly stated that they would not tackle the issue of accountability as soon as the group released draft recommendations the month latest.
"These recommendations go into the blender on the other side of the street," said Pedro Nava, a member of the commission.
Bond rating agency Moody's said earlier this week that creating a catastrophic fund would be a positive step for investors, but was equally skeptical about the prospects for changing corporate responsibility.
San Diego Gas & Electric and Southern California Edison have seen their bond ratings lowered earlier this year due to fire threats. They urged lawmakers to take steps to give investors confidence.
Newsom said it hoped lawmakers would follow up on proposals to strengthen state electric utilities before the legislature lifted for the summer break of July 12.
But he seemed to retreat before a difficult deadline earlier this week.
"If it is not July 12, it is not July 12, but we must do something quickly," he told reporters.
(Copyright 2019 The Associated Press Inc. All rights reserved This document may not be published, disseminated, rewritten or redistributed.)
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