Democratic California Gov. Gavin Newsom is reportedly considering a plan to charge ratepayers and utilities additional fees to funnel another $18 billion to the state’s fire cleanup fund, according to Bloomberg News.
The legislation Newsom is reportedly weighing would charge ratepayers a monthly fee, while utility companies benefitting from the funds — Sempra, PG&E and Edison International — would contribute the other half of the money, according to sources familiar with the proposal who spoke with Bloomberg News. The addition of a new monthly fee would be more bad news for California ratepayers, who are already on the hook for some of the highest utility costs in the U.S.
“We continue to work with the legislature on policy that will stabilize California’s Wildfire Fund to support the recovery of wildfire survivors and to protect California utility consumers,” Newsom’s office told Bloomberg News. (RELATED: Newsom Claims Trump Will Supercharge Electricity Prices As His Own Ratepayers Get Crushed)
Burnt debris and charred palm trees are seen scattered across a hillside in Southern California on January 10, 2025. (Photo by SAHAB ZARIBAF/Middle East Images/AFP via Getty Images)
Californians currently pay about 140% more for electricity compared to the national average, according to California Globe. The state has set aggressive zero-emission targets as Newsom aims for an 85% cut in greenhouse gas emissions by 2045, and its green energy push has led to excess solar and wind power that requires California to build out battery storage and to pay neighboring states to absorb the surplus.
Newsom’s reported proposal would make up for wildfire funds used up by the Palisades disaster cleanup, according to Bloomberg News. The Eaton and Palisades fires raged across Los Angeles in early January for a week, taking 31 lives and causing as much as $131 billion in damages to property and homes, according to UCLA Anderson.
A major reservoir in the area was empty for months awaiting repairs before the blazes broke out, and officials reportedly failed to address known water infrastructure issues in the Pacific Palisades area. Fire hydrants and water tanks also reportedly ran dry as emergency responders tried to extinguish the flames.
Following the disaster, devastated parts of Southern California have struggled to rebuild quickly thanks in part to strict permitting requirements.
“A durable wildfire fund is crucial to those impacted by wildfires and we look forward to working with the governor and legislatures on any proposal,” Diane Castro, Southern California Edison spokesperson, told the Daily Caller News Foundation.
Newsom’s office, PG&E and Sempra did not respond to the DCNF’s requests for comment.
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