“Wildfire survivors fought the utility bailout and won. Legislators heard us, stood up to enormous pressure from the Governor and the utilities, and rejected the biggest bailout protections they demanded.
SB 492 was a negotiated leadership compromise. Now it is dead because the utilities wanted even more. They would rather kill the bill than accept a compromise that rejected the bailout they sought.
Yesterday, PG&E shares plunged 20%. Edison International fell 23%.
That is not evidence California needs another utility bailout. It is evidence Wall Street does not have confidence that Edison and PG&E will stop causing catastrophic fires.
For years, investors expected California ratepayers, taxpayers and fire survivors to backstop the wildfire risk of owning these companies. This time legislators said no, and Wall Street had to price that risk.
It is a substantial risk. According to Aon, Edison and PG&E caused three of the five costliest wildfires ever recorded worldwide: Eaton, Camp and Woolsey.
California should focus on reducing that risk, not protecting shareholders from it.
A falling stock price does not raise ratepayer bills. California already compensates utilities for the cost and risk of raising capital. For 2026 through 2028, the CPUC authorized returns on equity of 10.03% for Edison and 9.98% for PG&E to enable them to attract capital and finance infrastructure.
Shareholders are richly rewarded for taking the risks of ownership. California’s three large for-profit utilities reported more than $10 billion in profits in 2025 and paid more than $3 billion in dividends. Their CEOs received nearly $60 million.
Shareholders own the profits. They should own the consequences of their companies’ negligence and misconduct.
Look at Sempra. Its stock did not collapse alongside Edison and PG&E. After its own devastating wildfire history, SDG&E invested heavily in wildfire prevention.
Wall Street sees the difference.
If Wall Street does not trust Edison and PG&E to stop causing catastrophic fires, California should not solve that problem with another bailout. Edison and PG&E should solve it by stopping the fires.
We should not privatize the profits and socialize the risk.
California does not need to restore Wall Street’s confidence in Edison and PG&E. Edison and PG&E need to earn it by making California safer.”
