CA Bill Stops Utilities From Charging Customers For Wildfires

SACRAMENTO, CA -- Inspired in part by a case involving San Diego Gas & Electric and its attempt to recover costs from the 2007 wildfires, a group of state lawmakers plan to introduce a bill that would stop utility companies from passing on any wildfire costs to ratepayers.

The bill, which will be introduced in January, will prevent electric utilities found culpable in wildfires from passing the costs for claims not covered by insurance as well as fines or penalties onto customers. It's being authored by state Sens. Jerry Hill (D-San Mateo), Mike McGuire (D-Healdsburg), Scott Wiener (D-San Francisco) and Assemblyman Marc Levine (D-Marin County).

"This practice is an outrage," said Hill, who also represents Santa Clara County. "Victims of devastating fires and other customers should not be forced to pay for the mistakes made by utilities. It's time to stop allowing utilities to push the burden of their negligence onto the backs of customers."

Lawmakers said utility makers often attempt to recover costs in wildfires not covered by insurance by passing them along to ratepayers.

They cite a case in San Diego County where San Diego Gas & Electric Company want to recover $379 million from the 2007 wildfires. On Monday, parent company Sempra Energy announced it was hit by costs from the wildfires.

In Northern California, Pacific Gas & Electric Company is also attempting to recover costs from the 2015 Butte Fire.

The bill comes after four wildfires scorched the North Bay, killing 43 people, earlier this month. The wildfires, which are expected to be contained this week, burned tens of thousands of acres and destroyed or damaged more than 7,000 structures.

--Photo by Justin Sullivan/Getty Images