EDITORIAL: Don't let utilities off the hook for California wildfires - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 7, 2018 Newswires
Share
Share
Post
Email

EDITORIAL: Don’t let utilities off the hook for California wildfires

San Jose Mercury News (CA)

July 07--The summer has hardly begun, and months after a horrific fire season California is experiencing scalding temperatures and wildfire destruction at historic levels.

Gov. Jerry Brown and legislative leaders were wise to form a conference committee last week to discuss fire prevention and financial responsibility for future fires -- as long as the main focus is on prevention.

The committee must not use the occasion to let utilities off the hook for future damages caused by their failure to adequately maintain power lines and utility poles. State Sen. Jerry Hill, D-San Mateo, notes that the greatest danger is the political challenge for the Legislature to alter any of the committee's major proposals.

The utilities, including PG&E, don't want to acknowledge that the current liability laws are largely working. The real problem is that PG&E too often has failed to live up to its maintenance obligations. Nor did PG&E purchase enough insurance coverage to cover the utility's potential liability for the 2017 wildfires.

In a prepared statement last month, PG&E said, "Based on the information we have so far, we continue to believe our overall programs met our state's high standards."

We disagree.

In May, the California Department of Forestry and Fire Protection said PG&E was responsible for three fires in October in Nevada and Butte counties.

Two weeks later, Cal Fire pinned the blame on PG&E for 12 of the destructive fires that raged in Northern California's wine country in October. Cal Fire said that the majority of the wildfires were caused by tree limbs making contact with power lines. Northern Californians are still waiting for Cal Fire to issue its report on the cause of the Tubbs Fire, which killed 24 people and destroyed 5,000 homes and caused an estimated $1.2 billion in damages. All told, 43 people died in the wine country fires.

The current California standard says that utilities must be reasonable and prudent in maintaining their equipment. If Californians want an idea of how the committee process could go awry, look into the proposed changes in Sen. Bill Dodd's SB 1088. The legislation would change the maintenance responsibility standard for utilities to "substantial compliance." Good luck determining what that means, because the bill doesn't include a definition. But it likely isn't good for California homeowners.

The utilities also want to alter the state's "inverse condemnation" policy, which holds them responsible for any wildfire damages caused by their equipment even if they were properly maintained. Any change in the law demands that California property owners be properly protected.

Cal Fire has already responded to nearly 2,900 fires this year, nearly 10 percent more than it did by this time a year ago. And that doesn't include the Klamathon fire that broke out Thursday along the Oregon-California border, killing one person and leading to the governor declaring a state of emergency.

The outbreak of wildfires so early this year makes it one of the state's most pressing issues. It's imperative that in taking prudent preventive measures the Legislature also takes care to ensure that those responsible for future wildfires continue to be held accountable.

___

(c)2018 the San Jose Mercury News (San Jose, Calif.)

Visit the San Jose Mercury News (San Jose, Calif.) at www.mercurynews.com

Distributed by Tribune Content Agency, LLC.

Older

Facts About Medicare You Didn’t Know

Advisor News

  • The overlooked retirement security risk that must be addressed
  • What advisors should know about hedge funds in retirement planning
  • Retirement control is top success measure for middle class, ACLI says
  • Industry groups applaud House passage of Financial Exploitation Prevention Act
  • Younger workers more likely to be eligible for a retirement plan after changing jobs
More Advisor News

Annuity News

  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
  • State Farm’s agency overhaul: What distribution can learn
  • IRI, ACLI express support for CLEAR Forms Act
  • A new era at the Federal Reserve
  • Globe Life Inc. (NYSE: GL) Making Surprising Moves in Tuesday Session
More Annuity News

Health/Employee Benefits News

  • Pa., N.J. and Del. join multistate lawsuit against Trump administration over Medicaid work requirements
  • Study Results from UNC Gillings School of Global Public Health Broaden Understanding of Managed Care (Days at Home among Children by Medical Complexity, Public/Private Insurance, and Urban/Rural Residence): Managed Care
  • Reports from New York University (NYU) Add New Data to Findings in Managed Care (HealthySteps Comprehensive Services and Preventive Care: A Medicaid Claims Analysis): Managed Care
  • 15 Maryland laws taking effect July 1 that you should know
  • States take Trump administration to court over Medicaid rule
More Health/Employee Benefits News

Life Insurance News

  • Never stop learning: A lesson for the next generation of advisors
  • Jackson Named InvestmentNews 2026 Annuities Provider of the Year
  • Corebridge adds index strategies, growth potential to Max Accumulator+ III
  • Estate planning 2.0: How ILITs can create liquidity
  • AM Best Affirms Credit Ratings of Misr Insurance Company
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

A MYGA for Clients Hesitant to Commit to One Long-Term Rate
First-year certainty. Annual rate updates. Get the CurrentRate® MYGA Sales Kit.

Elite Networking & Insights Await at the Event of the Year
The industry's premier conference for leaders driving what’s next in financial services.

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet