Newsom weighs special session after wildfire liability plan stalls

California Gov. Gavin Newsom signaled he could call a special legislative session to determine how much investor-owned utilities should pay for catastrophic wildfires as markets swung in response to the policy fight over liability and subrogation. Lawmakers have wrestled with shifting costs from fires to insurers and potentially capping utility liabilities, with proposals that would limit attorney fees and CEO bonuses while not fully easing the subrogation issue. The negotiations unsettled investors, causing volatility in PG&E and Southern California Edison shares as positions shifted on whether a broader reform would pass. Reports over multiple days indicate the wildfire liability plan did not advance to final passage, with some accounts saying it was killed or left without a vote as lawmakers adjourned. Survivors and critics argued the proposed compromise fell short, even as supporters highlighted benefits like faster payments to wildfire victims, and Newsom acknowledged the bill’s limitations while urging progress for affected residents. At the core, the debate remains about who bears the cost of future fires and how much protection utilities should have, with the legislature likely to revisit the issue in a future session.