Public Utilities Commission: electrical corporations: wildfire victim restitution shortfalls: report: restitution mechanisms

The law directs the state’s utility regulator to identify unpaid or underpaid wildfire losses and recommend ways electrical corporations can fully compensate victims. It bars recommendations that recover restitution payments through customer rates.

What the law does ​

• Requires the California Public Utilities Commission to report by January 1, 2028, on verified restitution shortfalls from electrical-corporation-caused wildfires occurring before July 12, 2019.
• Requires recommended mechanisms to provide full, fair, and timely compensation while supporting long-term rate stability.
• Requires proportional interim payments, timelines, and benchmarks when immediate full payment is not feasible.
• Prioritizes victims of fires from January 1, 2015, through July 12, 2019, including a path to full restitution for Pacific Gas and Electric Company fire victims from 2015 through 2018.
• Bars rate recovery for restitution payments and directs consideration of shareholder-dividend reductions, retained earnings, equity contributions, debt, and permissible existing wildfire financial structures.
• Allows the commission to recommend mechanisms only; implementation requires separate statutory authorization.

Who it affects ​

• Victims of wildfires caused by electrical corporations, particularly victims of Pacific Gas and Electric Company fires from 2015 through 2018.
• Electrical corporations responsible for wildfire restitution shortfalls.
• Utility customers, who cannot be charged through rates for restitution payments under the recommended mechanisms.

Context ​

The framework may also inform equitable restitution for victims of the 2025 Eaton Fire if an electrical corporation is found to have caused it.