California Lawmakers Approve Legislation For $21 Billion Wildfire Fund

"SAN FRANCISCO - California lawmakers approved legislation on Thursday to create a $21 billion fund to help utilities in the state pay for claims arising from future wildfires sparked by their equipment, tackling a top issue for the state.

The approval came after power provider PG&E Corp filed for bankruptcy in anticipation of more than $30 billion in wildfire liabilities.

The legislation now goes to Governor Gavin Newsom. The governor in June proposed California set up such a fund after S&P Global Ratings warned it could lower its ratings on the state’s two other major investor-owned power providers, Edison International’s (EIX.N) Southern California Edison and Sempra Energy’s (SRE.N) San Diego Gas & Electric, to below investment-grade on or about July 12."

Jim Christie reports for Reuters July 11, 2019.

Source: Reuters, 07/12/2019