PG&E-friendly wildfire plan is labeled unconstitutional by fire victims - 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 31, 2018 Newswires
Share
Share
Post
Email

PG&E-friendly wildfire plan is labeled unconstitutional by fire victims

San Jose Mercury News (CA)

July 31--Fire victims on Monday derided Gov. Jerry Brown's wildfire liability proposal for large utilities as unconstitutional and illegal -- even though PG&E's top boss has said the plan doesn't go far enough to help the utilities.

Gov. Brown on July 24 proposed a plan that could dramatically ease future potential wildfire-related financial burdens on large utilities such as PG&E by potentially shoveling more costs onto the shoulders of utility ratepayers and California homeowners. Brown said the plan wouldn't, however, affect any of PG&E's potential costs from the deadly October wildfires that torched the North Bay Wine Country and nearby regions.

The fire victims' opposition to the governor's plan is a fresh indicator that a full-scale battle looms in the waning weeks of the state legislative session over the nature and extent of future liabilities for PG&E and other big power companies when their equipment is involved in fires.

"The governor's wildfire proposal strips victims of their guaranteed right to compensation," the Up From the Ashes coalition of wildfire victims said in a statement Monday.

The coalition noted the state Constitution allows private property to be taken by an investor-owned utility for a public use only after the owner has been compensated for the loss of, or damage to, the property.

The governor's plan, however, would no longer require compensation because the proposal's language allows courts to use discretion regarding "whether the utility acted reasonably," the wildfire victims said. They suggested "reasonable" could have a wide-ranging interpretation.

San Francisco-based PG&E has in recent months waged a campaign to change a legal framework known as inverse condemnation that is used to determine whether utilities and their shareholders -- or the companies' rate-paying customers -- ultimately pay for costs associated with wildfires sparked by the utilities' infrastructure.

Fire victims warned that it's possible that even if property owners are compensated, the payments might fall far below the value of the defunct property.

However, a key passage in the governor's proposal could do away with full compensation and leave that up to the discretion of a judge or jury.

"Just compensation to the owner is not protected because the court can reduce the damages below the fair market value by determining proportionate fault," the legal analysis by the wildfire victims stated.

Alarmed by destructive wildfires this year and in past fire seasons, the governor has said his proposed legislative remedy is needed to protect a crucial electricity system whose financial stability could be undermined if today's legal framework for determining liability isn't altered.

But PG&E wants the governor and Legislature to go even further to fashion financial shields for PG&E.

"The governor's proposal is constructive, but it is insufficient," Williams told the analysts on July 26. "It is an important input, but more work is necessary."

"None of the reforms being discussed would limit a victim's ability to pursue a negligence claim against their utility," PG&E spokeswoman Lynsey Paulo said.

Although Brown's legislative proposal wouldn't absolve PG&E of exposures to past fires, a separate measure, AB 33, would use state-backed bond measures to finance, up front, billions of dollars in costs for the wildfires so victims could be paid rapidly, noted state Sen. Jerry Hill, a frequent critic of PG&E. The utility caused a fatal explosion in 2010 in San Bruno, which is part of the senator's legislative district.

"The governor's plan is clearly a way for PG&E to be bailed out for future liabilities, and as we know, AB 33 is designed to bail out PG&E for last year's illegal activities that started many of the October fires," Sen. Hill said.

___

(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.

Advisor News

  • How can more Americans achieve financial independence?
  • Savers vs. spenders: How money management attitudes impact financial confidence
  • Demonstrating the value of life insurance to Gen Z
  • Poor money habits are a dealbreaker in a new relationship
  • DC plan sponsors see opportunity in alternatives
More Advisor News

Annuity News

  • The next growth phase in life/annuities depends on modernization
  • CA judge certifies class action in teachers’ lawsuit over in-plan annuity fees
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Managing Director Joins ‘Target Topics’ Podcast to Discuss State of Delegated Underwriting Authority Enterprises Market
  • KBRA Assigns Rating to TruSpire Retirement Insurance Company
More Annuity News

Health/Employee Benefits News

  • Findings from Yonsei University Advance Knowledge in Demography (Different Understandings of Scientific Research in the Use of De-identified Personal Sensitive Data: South Korea, in Comparative Perspectives): Science – Demography
  • Data on Influenza Vaccines Discussed by Researchers at University of Lucerne (Keep Reminding Me To Get My Flu Shot): Immunization and Public Health – Influenza Vaccines
  • Bobby Harrison: Rising insurance exchange costs bad for working poor
  • New Managed Care Findings from Brown University Reported (Prior Authorization In Medicare Advantage: Beneficiary Exposure And Plan Disenrollment In 2021): Managed Care
  • Findings on Managed Care Detailed by Researchers at Renal Research Institute (AI-Driven Interventions for Imminent Hospital Admissions in Patients with End-Stage Kidney Disease: A Medicare and EMR-Based Analysis): Managed Care
More Health/Employee Benefits News

Life Insurance News

  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on South Korea’s Non-Life Insurance Market
  • Horace Mann Strengthens Customer Relationships and Accelerates Long-Term Growth Through Transactions with Medical Mutual of Ohio
  • Regulators: ‘No firm conclusions’ from first offshore reinsurance filings
  • Allianz Life Study Finds Americans Struggle to Shift From Retirement Saving to Spending
  • The next growth phase in life/annuities depends on modernization
More Life Insurance News

NEWS INSIDE

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

FEATURED OFFERS

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
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