The Public Utilities Commission has concluded that a state recovery fund is likely warranted to compensate future victims of major wildfires.
California enacted a fund in 2019 after one of its largest utilities, Pacific Gas & Electric, filed for bankruptcy. PG&E was potentially on the hook for billions of dollars in damages after multiple wildfires.
California put $21 billion into its fund. Half of the capital came from shareholders of California's three biggest investor-owned utilities, and the other half was financed by a new charge on Californians’ power bills.
Since then, Utah has established a recovery fund financed entirely by ratepayer contributions, and Oregon and Washington have considered similar proposals.
In the wake of the devastating 2023 blaze that destroyed Lahaina and killed 102 people, Hawaiʻi state lawmakers debated whether to create a $1 billion fund to help cover damages from future wildfires.
Maui victims' lawyers reached a $4 billion settlement with several parties including Hawaiian Electric, the state of Hawaiʻi and Kamehameha Schools, a large landowner on the island.
Last legislative session, lawmakers directed the PUC to investigate wildfire funds further.
The PUC's subsequent study, released last week, supports the creation of a fund — but not before some outstanding questions are resolved.
The PUC has yet to determine what the cap should be on an electric utility’s liability in the event of a catastrophic fire. That work is ongoing in a separate docket before the commission.
The commission also recommended that lawmakers call for a follow-up study to determine the exact size and structure of a fund.
