California Gov. Gavin Newsom gave legislators just three months to address a multibillion-dollar wildfire liability problem that has forced the state’s largest power company, PG&E Corp., into bankruptcy and threatens the same fate for its other utilities.
The governor issued a report Friday outlining possible solutions for how costs for destructive wildfires will be covered, including a possible fund that utilities can tap into, that sent the clearest signal yet that the state will move to keep its power companies solvent. He called for legislation to be passed before lawmakers take a month-long summer recess on July 12, sending shares of PG&E and its peers soaring. It was made known two weeks ago that Newsom was also drafting plans to respond to wildfires more broadly, and his proposal has been expected.