The Eaton fire in Altadena, CA, poses significant risks to California's $21 billion wildfire fund if Southern California Edison (SCE) is found liable. Lawsuits allege that SCE's power lines caused the fire, raising fears of the costs being transferred to the public fund with minimal incentive for utilities to settle financially responsibly. Established in 2019, the wildfire fund aims to protect private utilities from bankruptcy due to fire liabilities. However, it does not cover claims related to the Palisades fire, as that community is serviced by the Los Angeles Department of Water and Power.
Concerns arise over the potential depletion of California's wildfire fund if SCE is found responsible for the Eaton fire, which could exhaust the $21 billion fund.
SCE faces lawsuits alleging its power lines triggered the blaze, prompting fears of passing claim costs to the public fund with little financial incentive for cost-conscious settlements.
The wildfire fund was created in 2019 to prevent bankruptcy for private utilities like SCE, PG&E, and San Diego Gas & Electric in case of fire-related liabilities.
The California Catastrophe Response Council is exploring ways to strengthen the fund's balance sheet, including proposals of having utilities' customers bear the costs.
#california-wildfire-fund #southern-california-edison #eaton-fire #insurance-claims #utility-liability
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