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PG&E, Fires Worry Californians Who Find Newsom Falling Short

PG&E, Fires Worry Californians Who Find Newsom Falling Short

(Bloomberg) -- Most Californians are worried they will face rising utility bills because of power companies’ liabilities for wildfires and only a third approve of how Governor Gavin Newsom is handling the situation, a poll by the Public Policy Institute of California shows.

Newsom has given lawmakers until July 12 to pass a fix to the problem that forced the state’s biggest utility, PG&E Corp., into bankruptcy in January. At issue is who should pay for wildfires as climate change threatens to make them deadlier and more frequent. Utilities under California law are held responsible for fire costs if their equipment is found to be the cause, even if they weren’t negligent.

In the poll, 78% of Californians said they are concerned about higher electricity costs because of utilities’ responsibilities for wildfire damages. A third said they disapproved of Newsom’s approach to the bankruptcy and to the overall wildfire liability conundrum, while a slighter higher percentage, 38%, were undecided.

The low approval rating shows the difficulty facing the Democrat who took office in January. It wasn’t an issue he campaigned on, but one he had to grapple with since his first day. Fire victims and customer advocates don’t want any legislation to bail out the electricity providers, while the utilities say that they need some relief from strict liability rules for financial and power stability. PG&E filed for bankruptcy facing an estimated $30 billion in liabilities from blazes including the 2018 Camp Fire, the deadliest in state history.

"The bankruptcy of PG&E in the wake of the Camp Fire has been among the most contentious and consequential issues facing California’s new governor," pollsters said in the report.

A committee of gubernatorial and legislative appointees is scheduled Friday to approve a report sketching out options. Newsom and leaders of both legislative chambers said in a statement May 29 that they would aim for bridge financing and cost recovery for power providers acting responsibly as well as ensuring safe operations and affordable rates.

--With assistance from Mark Chediak.

To contact the reporter on this story: Romy Varghese in San Francisco at rvarghese8@bloomberg.net

To contact the editors responsible for this story: James Crombie at jcrombie8@bloomberg.net, Michael B. Marois, William Selway

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