California needs a big pot of money for wildfires. But how big? And who pays?
5 years, 6 months ago

California needs a big pot of money for wildfires. But how big? And who pays?

LA Times  

Gavin Newsom speaks at the California for All: Emergency Management Preparedness Summit on June 3 in Sacramento. Stock analysts predict that Southern California Edison could follow Pacific Gas & Electric into bankruptcy if Newsom fails to calm the energy markets and a major wildfire hits in Southern California, leaving victims across the state struggling to recoup their losses from insolvent utilities. “The goal of a liquidity fund is to prevent investor panic from getting out of control and leading to a bankruptcy,” Michael Wara, director of Stanford University’s climate and energy policy program, told state senators last week. But we have to do something quickly.” If the Legislature fails to pass legislation to significantly reduce the utility industry’s risk for wildfires, the credit downgrades from the ratings agencies could lead to higher borrowing costs for the utilities and monthly bills for electricity customers. “It’s going to be another big-ticket item that we’re going to have to get into in the coming weeks,” said Senate Pro Tem Toni Atkins after the Legislature approved the state budget last week.

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History of this topic

California wildfire ‘biggest scam’: Insurance companies cancel millions of policies, says Hollywood actor-director
2 days, 15 hours ago

California wildfire ‘biggest scam’: Insurance companies cancel millions of policies, says Hollywood actor-director

Live Mint  

Hollywood actor-director Tyler Perry took to Instagram to express his frustration with insurance companies amidst the devastating California wildfire. According to the Los Angeles Times, insurance companies such as State Farm, Chubb and Allstate have either stopped renewing or writing new policies for homes in wildfire-prone areas. “Watching a daughter use a garden hose to try and protect her 90-year-old …

The LA wildfires will cause chaos for California’s home insurance market
5 days, 15 hours ago

The LA wildfires will cause chaos for California’s home insurance market

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The wildfires that destroyed …

In California's blazing trails, a financial inferno threat to insurance business
5 days, 17 hours ago

In California's blazing trails, a financial inferno threat to insurance business

Firstpost  

As premiums soar and coverage shrinks, Californians face a housing affordability crisis that could leave entire communities in ashes, both financially and socially Firefighters battle the fire in the Angeles National Forest near Mt. Insurance market in crisis California’s insurance industry is in a full-blown crisis with major companies pulling out and more homeowners relying on state-backed insurance programmes. According …

How the wildfires in Los Angeles area could affect California’s home insurance market
Trending News
6 days, 1 hour ago

How the wildfires in Los Angeles area could affect California’s home insurance market

Associated Press  

SACRAMENTO, Calif. — The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk. California homeowners in wildfire-prone areas either go without insurance or join the Fair Access to Insurance Requirements Plan, which the state …

Disaster Aid Seen Easing Risk to Los Angeles Area Muni Bonds
6 days, 4 hours ago

Disaster Aid Seen Easing Risk to Los Angeles Area Muni Bonds

Live Mint  

-- The devastating wildfires in Los Angeles are unlikely to have an impact on the bonds of local governments as US officials promise financial support from the Federal Emergency Management Agency, according to a report from FHN Financial. “While the personal losses and community impacts are unimaginable, so far we expect municipal bondholders will be spared from the same magnitude …

The Los Angeles Fires Will Put California’s New Insurance Rules to the Test
55 years ago

The Los Angeles Fires Will Put California’s New Insurance Rules to the Test

Wired  

This story originally appeared on Grist and is part of the Climate Desk collaboration. Over the past five years, California has become a poster child for what climate-fueled weather disasters can do to a state’s home insurance market. “With input from thousands of residents throughout California, this reform balances protecting consumers with the need to strengthen our market against climate …

How the devastating Los Angeles fires could deepen California’s home insurance crisis
1 week ago

How the devastating Los Angeles fires could deepen California’s home insurance crisis

LA Times  

When raging wildfires tore through Pacific Palisades and other local communities this week, they not only left a path of destruction reminiscent of a World War II bombing campaign, but threatened to deepen a crisis that has already left hundreds of thousands of Californians struggling to find and keep affordable homeowners insurance. This just proves insurers’ point that the risk …

With fires burning again, is California becoming uninsurable?
6 months, 3 weeks ago

With fires burning again, is California becoming uninsurable?

LA Times  

Thursday marks the beginning of summer, but early wildfires have already scorched the outskirts of L.A. and the Bay Area. While the giant wildfires of 2017 and 2018 had a huge impact, requiring insurers to pay claims equivalent to more than 20 years of profits, the state’s insurance problems predate the fires. California’s failure to update the old rules governing …

Wildfires make utilities a tricky investment. Just ask Warren Buffett.
9 months, 1 week ago

Wildfires make utilities a tricky investment. Just ask Warren Buffett.

Live Mint  

Warren Buffett made a fortune by investing in electric utilities in the western U.S. Now, the world’s best-known investor says wildfires might undermine that strategy. PacifiCorp, a utility company owned by Buffett’s Berkshire Hathaway, has incurred hundreds of millions of dollars in liability costs tied to a series of Oregon wildfires in 2020 and might owe hundreds of millions more. …

Oregon wildfires case highlights the climate change risks to utilities
1 year, 6 months ago

Oregon wildfires case highlights the climate change risks to utilities

LA Times  

A jury verdict that found an Oregon power company liable for devastating wildfires — and potentially billions of dollars in damages — is highlighting the legal and financial risks utilities take if they fail to take proper precautions in a hotter, drier climate. “How do they pay for that and at the same time try to do grid-hardening at a …

California utility to pay $55 million for massive wildfires
2 years, 9 months ago

California utility to pay $55 million for massive wildfires

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Pacific Gas & Electric has …

If you live in a fire-prone part of California, this road map can help you save on insurance
2 years, 11 months ago

If you live in a fire-prone part of California, this road map can help you save on insurance

LA Times  

With the fire season growing longer and wildfires increasing in intensity, Californians living in fire-prone areas are having a harder time finding affordable insurance for their homes — if they can find coverage at all. For more detailed suggestions, consult Cal Fire’s “Hardening Your Home” site, its low-cost retrofit list and the University of California’s preparing your home webpage. The …

California targets urgent projects as wildfire season looms
3 years, 9 months ago

California targets urgent projects as wildfire season looms

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Last year’s record-setting wildfire season scorched more than 4% …

US: Nearly 100,000 evacuated in California as wildfires rage
4 years, 2 months ago

US: Nearly 100,000 evacuated in California as wildfires rage

Al Jazeera  

Wind-driven blaze forces mass evacuations in Southern California and leaves two firefighters badly injured, officials say. Fast-spreading wildfires have forced evacuation orders for more than 100,000 people and seriously injured two firefighters in Southern California as powerful winds across the state prompted a power outage to hundreds of thousands of residents. “It’s nuts – even inside the car, my eyes, …

Lawmakers want to extend California utility customer fee for wildfire and climate projects
4 years, 4 months ago

Lawmakers want to extend California utility customer fee for wildfire and climate projects

LA Times  

With more than 1 million acres burning in California, state lawmakers are pushing a last-minute proposal that would extend an existing fee on electricity bills to fund $500 million for immediate wildfire response and another $2.5 billion over time for climate resiliency and fire mitigation projects. The first plan, which would be developed within 30 days from the date the …

Editorial: It’s no government takeover of PG&E, but it’s still a possibility for the state’s most dangerous utility
4 years, 9 months ago

Editorial: It’s no government takeover of PG&E, but it’s still a possibility for the state’s most dangerous utility

LA Times  

It’s not the government takeover that many Californians were hoping for in light of the massive utility-sparked fires in recent years and the bungled “public safety power shutoffs” last fall. Gavin Newsom struck with Pacific Gas & Electric last week to let the state’s largest and most dangerous utility exit out of bankruptcy will bring some badly needed new oversight …

Regulators boost PG&E’s wildfire fine to $2.1 billion
4 years, 10 months ago

Regulators boost PG&E’s wildfire fine to $2.1 billion

Associated Press  

SAN FRANCISCO — California power regulators on Thursday slapped Pacific Gas & Electric with a $2.1 billion fine for igniting a series of deadly wildfires that landed the beleaguered utility in bankruptcy. Several consumer groups had protested the settlement as too lenient in light of PG&E’s destruction, and the California Public Utilities Commission agreed after further review. The San Francisco …

Wildfires cause turmoil in CA property insurance market
5 years ago

Wildfires cause turmoil in CA property insurance market

India TV News  

Kent Michitsch seemed to be running out of traditional options to insure the home he’s lived in for more than 30 years northeast of San Diego as California’s massive property insurance market reels from three consecutive years of destructive wildfires. State Farm, the largest insurer in the state, Allstate and other insurers declined to renew roughly 350,000 policies in areas …

Judge keeps a California law on utilities paying fire damages
5 years, 1 month ago

Judge keeps a California law on utilities paying fire damages

LA Times  

A federal bankruptcy court judge on Wednesday rejected Pacific Gas & Electric’s latest attempt to change a California law requiring utilities to pay for the devastation from wildfires ignited by their electrical equipment. The decision issued by U.S. Bankruptcy Judge Dennis Montali preserves a long-standing principle known as “inverse condemnation.” The century-old law helped drive the nation’s largest utility into …

Sen. Kamala Harris introduces bill to boost towns’ wildfire preparedness
5 years, 2 months ago

Sen. Kamala Harris introduces bill to boost towns’ wildfire preparedness

LA Times  

in November 2018, search and rescue teams inspect the grounds of a house burned by the Camp fire in Paradise, Calif. California Sen. Kamala Harris introduced a bill Thursday that would set aside $1 billion each year to pay for better infrastructure, land-use and evacuation route planning in fire-prone communities. With funds from the Federal Emergency Management Agency, Harris’ bill, …

The Hopelessness of Wildfire Season
5 years, 2 months ago

The Hopelessness of Wildfire Season

Slate  

Fires are roaring across California again. Officials haven’t determined the cause, but a jumper cable connecting PG&E equipment to a transmission tower near Kincade Road failed just minutes before officials say the fire began in the same location. Right now, PG&E would rather pull the plug on hundreds of thousands of people across large areas of the state for a …

California utilities — not lawmakers — are calling the shots on power outages to prevent wildfires
5 years, 2 months ago

California utilities — not lawmakers — are calling the shots on power outages to prevent wildfires

LA Times  

The money wouldn’t have gone far to help Californians who needed to replace spoiled food, those who fled to hotels or shopkeepers forced to buy generators and fuel during the power shut-off by Pacific Gas & Electric Co. earlier this month. State officials have long known that in the otherwise highly regulated world of utilities, they have little control over …

A swift fall from political power for PG&E, California’s largest utility
5 years, 4 months ago

A swift fall from political power for PG&E, California’s largest utility

LA Times  

Pacific Gas & Electric Co. has struggled to find friends at the state Capitol after years of massive wildfires and claims of mismanagement. “Many legislators thought it was one ask too many from PG&E this session, even if they agree with the policy,” said Steven Maviglio, a veteran Democratic strategist hired by the company’s shareholders to push the proposal this …

California utility seeks help in paying wildfire victims
5 years, 4 months ago

California utility seeks help in paying wildfire victims

Associated Press  

SACRAMENTO, Calif. — A troubled California utility company is asking the state Legislature to let it borrow money without paying taxes so it can compensate victims of a devastating wildfire caused by its equipment. The proposed bill authored by Republican Assemblyman Chad Mayes would let the California Infrastructure and Economic Development Bank issue tax-exempt bonds on behalf of PG&E, borrowing …

To reduce wildfires and save utilities, Newsom wants $10.5 billion from ratepayers
5 years, 6 months ago

To reduce wildfires and save utilities, Newsom wants $10.5 billion from ratepayers

LA Times  

This Dec. 3, 2018, file photo shows homes leveled by the Camp fire on Valley Ridge Drive in Paradise, Calif. But Newsom’s advisors said they were confident that a fund coupled with a new safety certification process would stabilize the industry’s finances, ensure that wildfire victims can recoup losses and reduce fire risks. “There is a lot of education that …

Column: California utilities use wildfires as an excuse to wring ratepayers dry
5 years, 8 months ago

Column: California utilities use wildfires as an excuse to wring ratepayers dry

LA Times  

Who should pay for the destruction of Paradise, Calif.? It always was predictable that California’s utilities would ask for a heap of government assistance to cover their financial liabilities resulting from two years of epic wildfires. — Utility expert Steven Weissman Edison is seeking an increase from the state Public Utilities Commission of more than 6% in its allowable return …

Who’s responsible for California’s deadliest and most destructive wildfire?
5 years, 9 months ago

Who’s responsible for California’s deadliest and most destructive wildfire?

Al Jazeera  

While the official state investigation is ongoing, California’s largest utility company PG&E has admitted that its equipment likely caused the fire. It turns out that utility tower is part of a century-old high-voltage transmission line that PG&E had designated five years earlier as needing an overhaul, and which the company knew posed a safety risk but kept delaying the work. …

California officials approve $131 million for emergency and disaster relief
5 years, 11 months ago

California officials approve $131 million for emergency and disaster relief

LA Times  

Gavin Newsom signed a pair of bills into law Wednesday to immediately provide $131.3 million in funding to expand access to clean drinking water, improve emergency preparedness and support wildfire-ravaged communities. “These budget bills reflect immediate needs for the state — relief for areas affected by wildfires, help for communities with urgent drinking-water needs, and assistance for asylum seekers,” Assembly …

The California Energy Utility That May Have Sparked the Deadly Camp Fire Has Filed for Bankruptcy
5 years, 11 months ago

The California Energy Utility That May Have Sparked the Deadly Camp Fire Has Filed for Bankruptcy

Slate  

On Monday evening, the board of directors of Pacific Gas and Electric, the investor-owned energy utility that serves 16 million people throughout Northern California, voted to file for bankruptcy. Consumer advocates and politicians have derided PG&E’s move to file for bankruptcy, claiming the investors who own PG&E are attempting pass the burden of their debt and failure to maintain equipment …

California Power Provider PG&E Files For Bankruptcy In Wake Of Fire Lawsuits
5 years, 11 months ago

California Power Provider PG&E Files For Bankruptcy In Wake Of Fire Lawsuits

NPR  

California Power Provider PG&E Files For Bankruptcy In Wake Of Fire Lawsuits Enlarge this image toggle caption Josh Edelson/AFP/Getty Images Josh Edelson/AFP/Getty Images Updated at 1:03 p.m. Chapter 11 "is really the best way to deal comprehensively with all the liabilities they have," says University of California, Berkeley, law professor Ken Ayotte, an expert on corporate bankruptcy. Enlarge this image …

Utility seeks bankruptcy protection over California fires
6 years ago

Utility seeks bankruptcy protection over California fires

Associated Press  

SAN FRANCISCO — The nation’s largest utility said Monday it is filing for Chapter 11 bankruptcy because it faces at least $30 billion in potential damages from lawsuits over the catastrophic wildfires in California in 2017 and 2018 that killed scores of people and destroyed thousands of homes. PG&E, which is the nation’s largest utility by revenue and is based …

Devastating Wildfires Force California's Largest Utility To Plan Sale Of Gas Assets
6 years ago

Devastating Wildfires Force California's Largest Utility To Plan Sale Of Gas Assets

NPR  

Devastating Wildfires Force California's Largest Utility To Plan Sale Of Gas Assets Enlarge this image toggle caption Noah Berger/AP Noah Berger/AP Updated at 6:29 p.m. Sponsor Message All net proceeds from the sale of PG&E's gas division would be used to set up a fund to pay billions of dollars in potential claims from wildfires, the sources said. Wildfire damages …

California utility’s role in wildfires under scrutiny
6 years ago

California utility’s role in wildfires under scrutiny

CNN  

CNN — As investigators seek to determine the cause of the deadliest wildfire in California history, the culprit that fire officials have linked to more than a dozen fires that ravaged large swaths of Northern California last year is again in the hot seat. Last year alone, PG&E equipment caused 17 fires, often after falling branches or trees came into …

After California fires, PG&E proposes raising electricity bills to bolster precautions
6 years, 1 month ago

After California fires, PG&E proposes raising electricity bills to bolster precautions

CNN  

CNN — California utility Pacific Gas & Electric Co. is asking for a rate hike of almost $2 billion from customers, saying more than half will go toward wildfire safety. In a proposal submitted Thursday to the California Public Utilities Commission, PG&E is asking for $1.1 billion in new revenue in 2020, including $576 million for the Community Wildfire Safety …

California Firefighting Agency Requests Another $234 Million For 2018
6 years, 4 months ago

California Firefighting Agency Requests Another $234 Million For 2018

NPR  

California Firefighting Agency Requests Another $234 Million For 2018 Enlarge this image toggle caption Noah Berger/AP Noah Berger/AP As fall — usually California's busiest fire season — approaches, officials say the agency that oversees emergency fire responses is running out of money. Cal Fire's director, Ken Pimlott, asked lawmakers for an additional $234 million to be made available as soon …

California lawmakers ratify new efforts at wildfire prevention and assessing who’s responsible
6 years, 4 months ago

California lawmakers ratify new efforts at wildfire prevention and assessing who’s responsible

LA Times  

With an urgency sparked by two consecutive years of deadly fires, California lawmakers have sent to Gov. That, supporters said, could mean the San Francisco-based company and other investor-owned utilities facing fire costs would have to scale back ambitious clean energy efforts that are being counted on to help support California’s climate change agenda. “It is not perfect, but it …

Column: San Onofre and the wildfires: Why utilities need to be held strictly to their responsibilities
6 years, 5 months ago

Column: San Onofre and the wildfires: Why utilities need to be held strictly to their responsibilities

LA Times  

While everyone’s attention is focused on the wildfires spreading devastation across California, a couple of developments tangentially related have gone largely unnoticed. “To give utilities a blank check on the ratepayers’ backs gives them a disincentive to operate properly,” says Maria Severson, a San Diego lawyer who participated in the San Onofre negotiations. “And if we do that, our whole …

California wildfire: US govt approves aid for victims as thousands of firefighters try to contain flames; 6 killed so far
6 years, 5 months ago

California wildfire: US govt approves aid for victims as thousands of firefighters try to contain flames; 6 killed so far

Firstpost  

The US government approved aid for the victims of California wildfire as thousands of firefighters are still battling to contain the flames Redding: The US federal government approved aid on Sunday for California as thousands of firefighters battled to contain a series of deadly raging wildfires that have killed six people, including two young children and their great grandmother, and …

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