California’s biggest utilities in crisis mode as shares fall off a cliff and insurers smell blood

California’s biggest utility companies were rocked Monday after lawmakers dealt Gov. Gavin Newsom a blow over a sweeping wildfire liability overhaul.

Pacific Gas and Electric Company (PG&E Corp.) and Edison International shares plunged nearly 20% and 24%, respectively, Monday morning after California Democrats gutted Newsom’s proposal, which sought to change who pays when utility equipment sparks catastrophic wildfires.

The plan would have blocked insurance companies from suing utilities to recover some of their wildfire losses — a move insurers fiercely opposed.

Edison International had the company’s worst single-day decline in more than 25 years, according to 24/7 Wall St, as shares of Southern California Edison’s parent company were down 23% to $54.22 Monday

Lawmakers instead backed a much narrower compromise after opposition from insurance companies, hedge funds and trial lawyers.

The final measure includes provisions aimed at stopping utility CEOs from receiving bonuses after their companies ignite wildfires and getting money to fire survivors faster.

PG&E has faced liability over several major California wildfires in recent years, including the 2018 Camp Fire, 2019 Kincade Fire, 2020 Zogg Fire and 2021 Dixie Fire.

Socal Edison has likewise faced major wildfire liability. Investigators determined the utility’s equipment caused the deadly2025 Eaton Fire, which killed 19 people and destroyed or damaged more than 9,000 structures in the Los Angeles County foothills. The Justice Department also sued SCE over the 2022 FairviewFire, alleging the utility’s equipment sparked that blaze.

The California Post has reached out to PG&E and Socal Edison for comment.

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