California fire liability rule threatens renewable energy goals: panel

摘要

California's practice of holding utilities strictly liable for damagesrelated to wildfires ignited by their equipment, whether or not thecompanies are found negligent, threatens not only utilityshareholders, but also the state's ambitious climate and clean energypolicies and must be reformed, according to a state-appointed panelon wildfire costs.The state's current approach to wildfire liability, shaped by the legaldoctrine known as inverse condemnation, "imperils the viability of thestate's utilities, customers' access to affordable energy and cleanwater, and the state's climate and clean energy goals," the Commissionon Catastrophic Wildfire Cost and Recovery said in draft reportreleased Wednesday. Strict liability also "does not equitably socializethe costs of utility-caused wildfires," the report added, recommendingthat it "be replaced with a fault-based standard."