California Governor Gavin Newsom is reportedly pursuing a last-minute effort to shield the state’s three for-profit utility monopolies from financial liabilities linked to wildfires, potentially passing these costs onto consumers instead. This move follows previous controversial decisions that critics say have prioritized utility companies’ financial interests over those of wildfire survivors.

Last year, in a bid to prevent the bankruptcy of Southern California Edison—widely held responsible for the Eaton Fire—Newsom replaced a consumer protection bill with a 231-page utility bailout just days before the legislative session ended. Lawmakers have since acknowledged a lack of full understanding of the bill’s contents at the time of the vote. Despite warnings that Edison faced insolvency, the utility subsequently received approval from the California Public Utilities Commission (CPUC) for a rate increase exceeding $1 billion annually, along with close to $1 billion in retroactive payments. These regulatory decisions occurred under the leadership of five Newsom appointees to the CPUC.

Contrary to concerns of financial collapse, Edison reported substantial profits following these interventions. In 2025, the year the Eaton Fire resulted in at least 19 deaths and widespread destruction, Edison’s profits rose from $1.3 billion the previous year to $4.5 billion. The company also increased shareholder dividends and executive compensation, including a 20% rise in CEO Pedro Pizarro’s pay, which reached $16.5 million. Major shareholders include investment firms Vanguard, BlackRock, and State Street.

Critics argue that these developments represent a transfer of wealth from California consumers, many still grappling with wildfire recovery, to utilities’ shareholders. Consumer electricity rates in California are the second highest nationwide, exceeding those served by publicly owned utilities by more than 50%. Advocates for wildfire survivors contend that these financial policies undermine accountability and delay reparations for communities devastated by the fires.

Newsom’s current efforts reportedly involve supporting a new utility bailout proposal advocated by a coalition named Wildfire Victims First—a group funded and promoted by the state’s three for-profit utility companies. Analysis from consumer watchdog organizations indicates that many coalition members have received substantial financial support from utilities, raising questions about whether their messaging genuinely reflects survivor interests. Meanwhile, wildfire survivors emphasize that many remain displaced nearly two years after the Eaton Fire.

Public criticism centers on the perception that utilities responsible for catastrophic fires are positioning themselves as victims to secure continued financial relief. Survivors and advocacy groups urge that utilities be held accountable for the damages caused and that any financial assistance be subject to transparent legislative procedures rather than executive maneuvering.

Governor Newsom has yet to publicly confirm the details of the current proposal, but stakeholders emphasize the urgency of timely legislative scrutiny. As the deadline approaches, wildfire survivors and their advocates continue to call for a rejection of additional utility bailouts and for policies that prioritize direct support to affected families.