Bill Text: CA AB2283 | 2021-2022 | Regular Session | Enrolled
Bill Title: Public utilities: wildfires: victim compensation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Vetoed) 2022-09-29 - Vetoed by Governor. [AB2283 Detail]
Download: California-2021-AB2283-Enrolled.html
|
Enrolled
August 29, 2022 |
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Passed
IN
Senate
August 25, 2022 |
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Passed
IN
Assembly
May 23, 2022 |
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Amended
IN
Assembly
March 17, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 2283
| Introduced by Assembly Member Gallagher |
February 16, 2022 |
An act to add Section 327.5 to the Public Utilities Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 2283, Gallagher.
Public utilities: wildfires: victim compensation.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations.
Under federal bankruptcy law, the Pacific Gas and Electric Company entered into a settlement agreement with victims of certain wildfires caused by the company occurring
before the 2019 calendar year through the establishment of the Fire Victim Trust that has a certain expected value.
This bill would require the commission, in a new or existing proceeding, to undertake a comprehensive review of actions taken by the Pacific Gas and Electric Company that materially and adversely affected the value of its stocks provided pursuant to the above-described settlement agreement.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Pacific Gas and Electric Company.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:(a) On September 9, 2015, a tree caught fire in the County of Amador, causing at least two deaths and extensive property damage in the Counties of Amador and
Calaveras. This fire came to be known as the 2015 Butte Fire.
(b) In early October of 2017, multiple fires ignited throughout the Counties of Napa, Sonoma, Lake, Butte, Mendocino, and Solano, causing at least 44 deaths and more than $14 billion dollars in property damage. These fires came to be known as the 37 Fire, Adobe Fire, Atlas Fire, Blue Fire, Cascade Fire, Cherokee Fire, Honey Fire, LaPorte Fire, Lobo Fire, Maacama/Youngs Fire,
McCourtney Fire, Norrbom Fire, Nuns Fire, Partrick Fire, Pocket Fire, Point Fire, Pressley Fire, Pythian/Oakmont Fire, Redwood/Potter Valley Fire, Sullivan Fire, Sulphur Fire, and the Tubbs Fire, or collectively as the 2017 North Bay Fires.
(c) On November 8, 2018, an electrical transmission line operated by Pacific Gas and Electric Company (PG&E) ignited a fire in the County of Butte, causing at least 85 deaths, and causing property damage estimated at over $16 billion dollars. This fire came to be known as the 2018 Camp Fire.
(d) On January 29, 2019, owing in large part to liability for damages caused by the fires in 2015, 2017, and 2018, PG&E Corporation and Pacific Gas and Electric Company jointly filed for bankruptcy protection in the United States Bankruptcy Court for the Northern District of California pursuant to Chapter 11 (commencing with Section 1101) of Title 11 of the United States Code. The plan of reorganization pursuant to that filing was approved by the court on June 20, 2020, and became effective on July 1, 2020. As part of that plan, the Fire Victim Trust was formed.
(e) The Fire Victim Trust evaluates, administers, processes, and resolves eligible claims arising from the fires that occurred in northern California in 2015, 2017, and 2018.
(f) In a letter dated September 1, 2021, from the trustee of the Fire Victim Trust to the fire victims, the trustee noted that while the expected value of the settlement to resolve eligible claims arising from the fires was reportedly $13,500,000,000, the settlement was not
a “true lump sum but rather a combination of cash and PG&E stock.” One-half of the expected settlement amount was provided in cash while the other one-half was expected to be provided by the value of approximately 477 million shares of PG&E stock. The trustee’s letter further notes that “[o]n the day the Trust was established and became owners of approximately 477 million shares of PG&E stock, it was trading at $9 per share, for a value of $4.2 billion, approximately $2.5 billion less than promised.”
(g) Because of the fluctuation in the value of PG&E stock, the Fire
Victim Trust may not be funded at the expected value of the settlement.
