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Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric created Wildfire Victims First to lobby for limits on victim compensation and attorney fees. Survivor advocates and lawmakers have opposed the proposals in a Newsom-ordered study.
Los Angeles TimesA group created with money from Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric began sending mailers and paying for social media ads this spring urging lawmakers to reduce the rising cost of wildfires. The Los Angeles Times reported that Wildfire Victims First is lobbying in Sacramento for proposals in a study ordered by Gov. Gavin Newsom.
Those proposals include limiting amounts victims can receive for pain and suffering, capping fees for attorneys representing survivors and requiring property insurers to bear more of the cost of utility-sparked fires. Government investigators found that the three utilities ignited at least six of California’s 20 most destructive wildfires.
The Eaton fire, the second most destructive in state history, killed 19 people and remains under investigation.
Southern California Edison has stated its century-old transmission line is the likely cause. Joy Chen of Every Fire Survivor’s Network wrote in a 15-page letter to Newsom this week that each proposal would shift more of the cost of catastrophic fires away from the corporations responsible and onto survivors, policyholders, taxpayers and the public.
The letter was signed by Public Citizen, Consumer Watchdog and the National Day Laborer Organizing Network.
“The Eaton Fire devastated Altadena, home to one of California’s most historic Black communities,” said Brandon Lamar, president of NAACP Pasadena. ” State Senator Sasha Renee Perez, a Democrat who represents Altadena, said she opposed any bill that would limit payments to victims for pain and suffering.
Anthony Martinez, a spokesman for Newsom, said the governor and lawmakers were discussing new legislation because the study concluded the current system is unsustainable.
Nathan Click, who directs the Wildfire Victims First campaign, said the group launched after the study found that payouts to financial middlemen such as trial attorneys, hedge funds and insurance companies are often paid before wildfire victims receive a single dollar.
Click said trial attorneys can take up to 40% of settlement awards. Southern California Edison told its shareholders in its annual report that it believes it acted as a reasonable utility operator before the Eaton fire.
If state regulators agree, Edison will be reimbursed for payments to victims by a $21 billion wildfire fund created through legislation signed by Newsom in 2019. If damages exceed the fund, Edison’s customers will pay the rest through their electric rates under amendments added last year in Senate Bill 254.
Pedro Pizarro, Edison International’s chief executive, said last year that a leading theory of the fire’s cause was that an idle transmission line in Eaton Canyon was briefly re-energized through induction.
Edison kept the line in place despite not using it for 50 years. Edison’s profits rose more than 200% last year to $4.5 billion, and Pizarro received $16.6 million in compensation, up 20% from 2024.
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