In one of his last political pushes as governor, Gov. Gavin Newsom wants to speed up payouts for wildfire victims. Critics say it helps utilities avoid accountability
He’s trying to keep electricity rates down for California residents (which are driven in part by wildfire costs). Is this the best way? I’m not sure. But if residents aren’t paying via electricity rates, they will pay another way. Insurance (if you can get it). Taxes (if voters will agree to it). Maybe other ways. None of them are that palatable.
Insurance companies operating in California are already massively increasing homeowner premiums regardless of risk. Example: my homeowner and earthquake premiums are both up 60% year-on-year. I live in a low fire-risk area, and the risk of an earthquake hasn’t changed since last year. They’re seeing how far they can push it before the regulators stir themselves from their lethargy and actually do something. And Newsom has consistently shielded big corporations from accountability.
It’s tricky because the people who live in high risk areas live there because that is frequently what they can afford. It also means they may not be able to afford the rising costs of insurance. The issue is complex and the reality is that wildfire prevention and mitigation is expensive. We will end up paying one way or another.
It’s very much not the best way. Utilities (and their high-level managers) should be held strictly liable for the cost of wildfires that they start. The reason it happens at all is that they’ve been diverting funds from maintenance and fire-safety improvements to executive bonuses.
He’s trying to keep electricity rates down for California residents (which are driven in part by wildfire costs). Is this the best way? I’m not sure. But if residents aren’t paying via electricity rates, they will pay another way. Insurance (if you can get it). Taxes (if voters will agree to it). Maybe other ways. None of them are that palatable.
They could tax insurance sales to high risk or high value properties. They’re the ones that will ultimately be the biggest burden in a fire anyway.
In reality the costs should fall on the utility companies that likely caused several of the fires. But that would raise prices for everyone.
They could make it so PG&E isn’t the only private electricity provider around or have a public option.
Insurance companies operating in California are already massively increasing homeowner premiums regardless of risk. Example: my homeowner and earthquake premiums are both up 60% year-on-year. I live in a low fire-risk area, and the risk of an earthquake hasn’t changed since last year. They’re seeing how far they can push it before the regulators stir themselves from their lethargy and actually do something. And Newsom has consistently shielded big corporations from accountability.
They could make it so PG&E isn’t the only private electricity provider around or have a public option.
It’s tricky because the people who live in high risk areas live there because that is frequently what they can afford. It also means they may not be able to afford the rising costs of insurance. The issue is complex and the reality is that wildfire prevention and mitigation is expensive. We will end up paying one way or another.
It’s very much not the best way. Utilities (and their high-level managers) should be held strictly liable for the cost of wildfires that they start. The reason it happens at all is that they’ve been diverting funds from maintenance and fire-safety improvements to executive bonuses.