California lawmakers are said to be considering a proposal to help utilities shoulder billions of dollars in potential liability costs while offering relief to wildfire victims by setting up a compensation fund that would be backed by the state and the power companies.

Details, including the size, are still being worked out and the proposal – one of a number of options being considered – may not come together, according to people familiar with the discussions who asked not to be identified because they aren’t public. The fund could issue bonds, with the payments potentially provided by utility shareholders, ratepayers and revenue from the state’s cap-and-trade program or general fund, the people said.

October fires destroyed large swaths of California wine country, including thousands of homes, and killed 44 people, while blazes in December hit areas near Los Angeles. Statewide insurance claims topped $12 billion as of March, according to the California Department of Insurance.

California law can hold utilities including PG&E Corp., Edison International and Sempra Energy liable for costs if their equipment is found to have caused a fire, even if they followed safety rules. The money in the proposed fund could be available for utilities in situations in which they weren’t found to be negligent or regulators determined they acted appropriately.

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