Bill
Bill > SB926
OR SB926
Relating to wildfires resulting from the fault of an electric company; declaring an emergency.
summary
Introduced
01/21/2025
01/21/2025
In Committee
05/29/2025
05/29/2025
Crossed Over
04/24/2025
04/24/2025
Passed
Dead
Introduced Session
2025 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: Bans the recoupment of certain costs that a power company incurs from claims based on a wildfire. (Flesch Readability Score: 65.1). Prohibits the recovery from customers of certain costs and expenses that an electric company incurs if a court or jury finds that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. Prohibits an electric company from paying or distributing dividends, income, interest or profits or paying, distributing or repurchasing stock or other ownership interest to any person or individual with an ownership or beneficial interest in the electric company if the electric company owes any debt on an outstanding judgment that is based on a finding by a court or jury that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. Sets the rate of interest on the judgment at nine percent per annum to accrue from the date the wildfire was ignited if a plaintiff establishes that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. Provides that an electric company is liable for all taxes that may be owed by a prevailing party on a judgment that the electric company has not satisfied by January 1, 2026, for a judgment that is based on a finding by a court or jury that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. Requires an electric company to request that the Public Utility Commission open an in- vestigation if the electric company owes more than a certain amount of debt on an out- standing judgment or judgments that are based on a wildfire that resulted from the negligence or a higher degree of fault on the part of the electric company and the electric company plans to make a payment, distribution or repurchase related to dividends, income, interest, profits, stock or other ownership interest. Directs the commission to suspend the payment, distribution or repurchase during the investigation and allows the commission to issue a final order that imposes restrictions, requirements or conditions. Allows a plaintiff to file motions in a civil action based on a wildfire caused by an electric company to require the electric company to file a security or bond if the electric company has been found to be liable to other plaintiffs for damages, losses or other harms resulting from the same wildfire, to have prejudgment interest accrue from the date the wildfire caused damages, losses or other harm and for a supplemental judgment for any additional tax liabilities that the plaintiff may owe on the underlying final judgment. Requires an electric company to apply for a wildfire safety certification. Directs the commission to issue a certification if the applicant is implementing a wildfire protection plan and meets certain requirements. Provides that a certification establishes that the applicant has implemented wildfire policies and practices consistent with wildfire safety standards. Provides that a certification does not establish immunity against claims for damages re- sulting from a wildfire. Directs the commission to commission a study to examine issues related to catastrophic wildfire risk and recovery and develop scenarios for a balanced solution. Directs the com- mission to provide an interim report on the study’s findings and recommendations to the committees of the Legislative Assembly related to energy and environment during the 2026 regular session and provide recommendations for a stakeholder process to follow the final study report. Declares an emergency, effective on passage.
AI Summary
This bill introduces comprehensive measures targeting electric companies' responsibilities and financial consequences in wildfire incidents. Specifically, the bill prohibits electric companies serving more than 25,000 customers from recovering certain costs from ratepayers if a court finds them negligent in causing a wildfire, including litigation expenses, property repair costs, and judgment-related expenses. The legislation requires electric companies to request a Public Utility Commission investigation before making dividend payments, stock distributions, or stock repurchases if they owe significant outstanding wildfire-related judgments, allowing the commission to impose restrictions on such financial activities. Additionally, the bill mandates that electric companies annually apply for a wildfire safety certification by demonstrating a comprehensive wildfire protection plan, commitment to safety practices, and addressing infrastructure deficiencies. The bill also requires the Public Utility Commission to commission a third-party study examining catastrophic wildfire risks and potential policy solutions, with an interim report due during the 2026 legislative session. Notably, the bill applies to wildfires ignited on or after January 1, 2020, and contains an emergency clause making it effective immediately upon passage, highlighting the urgent nature of addressing wildfire risks and electric company accountability.
Committee Categories
Budget and Finance, Justice
Sponsors (11)
Jami Cate (R)*,
David Gomberg (D)*,
Chris Gorsek (D)*,
David Smith (R)*,
Tom Andersen (D),
Ed Diehl (R),
Jeff Golden (D),
Cyrus Javadi (R),
James Manning (D),
Mark Meek (D),
Nathan Sosa (D),
Last Action
Referred to Ways and Means by order of Speaker. (on 05/29/2025)
Official Document
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