California Lawmakers File Wildfire Plan Axes Newsom Asks to Bar Insurers From Suing Utilities, California

FROM SUING UTILITIES, California — “Nonetheless, this system needs full structural reform — not a partial one,” Newsom said in a statement, calling on lawmakers to revisit the issue next year, after he leaves office due to term limits.

Wildfire Details

Lawmakers snubbed Newsom’s push to bar insurance companies from suing utilities for wildfire-related claims through a process known as subrogation.

Insurers had warned that such a move would drive up premiums, stinging homeowners and businesses already frustrated with rising rates for coverage in recent years.

Reports Friday morning that negotiations had broken down on that point led to a sell-off in the shares of the state’s major investor-owned utilities, with PG&E Corp. closing 7.5% down for the day.