SACRAMENTO – November 03, 2026 -- A PG&E presentation shared with California state senators proposes capping shareholder liability for utility-caused wildfires at between $1.5 billion and $5.1 billion, with ratepayers absorbing the remainder, according to a Los Angeles Times report cited by Consumer Watchdog. The proposal reportedly applies regardless of how negligent the utility was, and it would be pursued in a special legislative session to be completed before Thanksgiving.
Eaton fire costs could reach $18 billion under the proposed cap
The Eaton fire, reportedly started by Edison's negligence, could cost between $14 billion and $18 billion. Consumer Watchdog President Jamie Court cited $4.6 billion as the most Edison shareholders would owe under a cap, leaving ratepayers with the balance.
Edison CEO sets November 15 deadline for special-session bill
Edison CEO Pedro Pizarro said on a recent investor call that the current legislature ceases to exist on November 30. To reach the governor through a special session, he said, a bill would need to pass no later than November 15. Consumer Watchdog says the CEOs of Edison and PG&E have both described a pre-Thanksgiving special session as viable.
Consumer Watchdog cites Sacramento insiders as saying rank-and-file legislators are cool to the idea. It names only Assembly Utilities and Energy Committee Chair Cottie Petrie Norris, backed by Assembly Speaker Robert Rivas, as siding with the utilities in calling for a session.
Governor's public fact sheet never mentioned a liability cap
Court said the governor's fact sheet, the only public document laying out his and the utilities' intentions, omitted any shareholder liability cap. Consumer Watchdog also says the utilities avoided public comment and testimony throughout the legislative year and sheltered behind their Wildfire Victims First group.
Court argued that a hard cap "would create moral hazard by putting a predictable price on a for profit utility's negligence." He said that would push Edison toward short-term returns over safety, citing an abandoned transmission line that Edison was allocated money to remove. He did not say Edison had decided to leave the line in place.
PUC report on liability reform draws criticism for omitting ratepayer protections
The Public Utilities Commission posted its report on the need for wildfire liability reform the day before, responding to a query from Governor Gavin Newsom. Consumer Watchdog says the report does not address how the PUC can protect ratepayers from delays by PG&E and Edison.
Senator Sasha Renée Pérez has called on the PUC to require both utilities to meet their duty to serve and not delay necessary services pending a bailout. Consumer Watchdog calls this tactic "bailout blackmail." It also says the PUC repeats the error of the California Earthquake Authority's SB 254 report by treating wildfires as if they start on their own. Court pointed to the Camp and Eaton fires as examples of blazes started by utility negligence.