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Press Room

August 7, 2026

Catherine Walker

Climate Action Campaign Statement on Potential Wildfire Bailout of California Utilities

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California fire investigators confirmed this week that Southern California Edison's equipment sparked last year's catastrophic Eaton Fire, tracing the blaze to an out-of-service transmission line left standing for 54 years.


Yet instead of taking full responsibility, utility executives are resorting to blatant pressure tactics. On its recent earnings call, PG&E warned state lawmakers that if legislation cutting their wildfire liability isn't passed before August 31, they will take action, saying they could divert funds into stock buybacks to boost shareholder value rather than funding state energy programs. Meanwhile, Edison warned of potential credit rating downgrades, threatening to pass the resulting higher borrowing costs directly onto ratepayers.


Edison’s posturing came on the same Q2 investor call where they reported $669 million in second-quarter profits – a 40% jump over last year – and bragged to investors that California families, not shareholders, will foot the bill for the Eaton fire.


No ratepayer should be forced to pay for a wildfire caused by utility negligence, especially while utilities post massive profits and issue ultimatums to state leaders. California families have already lost homes, loved ones, and entire communities, all while enduring record-high electric bills.


At the same time, Eaton Fire survivors and Consumer Watchdog have exposed a deceptive, utility-funded PR campaign built to look like it speaks for LA wildfire survivors while actually fighting for a backroom bailout deal that would let utility companies walk away scot-free from the fires they cause. Real wildfire survivors are outraged by this shameless and disgusting scheme, and Orange County residents should be furious that our hard-earned money is paying for this propaganda to shield utilities from the consequences of their negligence.


California leaders must reject utility threats and refuse to pass another corporate bailout. State officials must hold utilities fully accountable, protect wildfire survivors, and put California families over corporate profits.

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Climate Action Campaign is a climate justice powerhouse working to secure a 100% clean, affordable energy future for all. We relentlessly organize and empower Southern California communities by building grassroots power, holding leaders accountable, and creating roadmaps for people-centered climate solutions.

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