A U.S. bankruptcy court judge has upheld a California law forcing utilities to pay for all damages when their equipment causes wildfires
The century-old law helped drive the nation’s largest utility into bankruptcy protection 10 months ago as it faced at least $20 billion in losses stemming from a series of deadly and destructive wildfires in 2017 and 2018.
In a statement, PG&E expressed disappointment with Montali’s reasoning before sounding a conciliatory note. That raised the specter of California utilities having to shoulder all the costs of future wildfires at a time when the blazes are growing more frequent and destructive amid climate change. “PG&E continues to believe that imposing strict liability without regard to fault under inverse condemnation is a flawed legal doctrine and bad for our customers, our economy and our state,“ the company said after the ruling.
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