Utility Bailout Fails as SB 492 Collapses

Joy Chen of the Every Fire Survivor's Network and Jamie Court of Consumer Watchdog argue that the market decline reflects a lack of investor confidence in the utilities' ability to prevent catastrophic wildfire events. While industry lobbyists sought to frame the bill as a necessary safety net, advocates contend that the companies are being forced to finally account for the inherent risks of their operations. Data from Aon supports the severity of these concerns, linking PG&E and Edison to three of the five costliest wildfires in global history.

State regulators already provide significant financial cushions, with the California Public Utilities Commission authorizing equity returns of approximately 10% for both companies through 2028. With over $10 billion in collective profits and $3 billion in dividends paid out in 2025, critics insist that shareholders must bear the consequences of corporate negligence rather than shifting the burden to taxpayers. By contrasting this performance with Sempra’s recent investments in wildfire prevention, advocates suggest that the path forward lies in operational reform rather than state-sponsored financial bailouts.