Edison Under Scrutiny for Eaton Fire.Who Pays for Liability will be ‘New Frontier’ for California

Source: LA Times |  By Jenny Jarvie

“This is the most profound test case that the fund [$21-billion wildfire fund, split equally between shareholders and utility customers] will potentially be up against,” said Christopher Holden, a former Democratic legislator who sponsored the bill that created the fund. “This is a new frontier,” said Holden, who lives in Pasadena and had to evacuate during the Eaton fire.

Mark Toney, executive director of TURN, The Utility Reform Network, said the massive scope of the L.A. County fires raised significant questions about the fund’s ability to cover insurance liability. Even if the fund is able to bail out utility companies for the fires, it’s uncertain whether it could then cover fires that may crop up in the future. “Will the fund work right?” Toney said. “Who ends up paying?”