California Governor Gavin Newsom is circulating a legislative proposal to shore up a state fund for utilities that’s at risk of being depleted following the deadly wildfires that struck Los Angeles County in January.
The plan would channel an additional $18 billion to the wildfire fund, almost doubling the current commitments, said people familiar with the matter. Electricity ratepayers would contribute half the money through a monthly fee while the other half would come from three utility companies that benefit from the fund, Edison International, PG&E Corp. and Sempra, the people said.
Newsom’s proposal is emerging as a potential lifeline for the utilities amid uncertainty over liability linked to the Los Angeles fires. Investors dumped Edison shares amid worries that the company would be found liable for one of the blazes, potentially draining the fund and leaving utilities without a cushion if another disastrous fire hits the state…