Oakland, Calif. - Survivors of last year's Southern California wildfires rallied Friday to urge Gov. Gavin Newsom to reject any proposal that would limit what utilities can pay wildfire victims, as a consumer advocacy group warns that a deal may be taking shape behind closed doors.
No bill has yet been introduced in the state Legislature to limit compensation for wildfire victims. But Carmen Balber, executive director of the nonprofit Consumer Watchdog, said her organization is treating the possibility seriously.
"We're in a situation we've been before where there are rumors of a behind the scenes deal between the governor, members of the legislature and the utilities to cut a bailout that would save the utilities from paying for fires they cause on the backs of wildfire victims and all of us," Balber said. "We're hearing those rumors. We think they're very credible rumors. We're hearing from our reliable sources. It's been reported and confirmed that something is in the works in the LA Times."
Balber said Consumer Watchdog is mobilizing wildfire victims and organizations across the country to oppose any bailout "of our expense."
The specifics of any potential legislation remain unclear, Balber said, but she outlined what utilities are known to be seeking.
"The utilities are pushing for changes in the laws that limit what victims of wildfires get compensated for," Balber said. "For example, right now, if you are someone who lost a family member in the wildfires, and in Los Angeles recently, we lost over 30 people just in the evening of the fires, the amount the utilities would have to pay to compensate the victims of those losses would be capped or eliminated."
Balber said utilities also want to prevent insurance companies from being compensated when utility equipment causes a fire.
"If insurance companies don't get repaid by the utilities when the utilities cause a fire, then all of us pay more for our insurance," she said. Balber added that limiting victims' ability to retain an attorney to fight underpayment is another change utilities are pushing for. "Those are things the utilities are pushing for. We fear all of those things are in the works in the plan that governor is looking at."
Balber also addressed a newly formed group called Wildfire Victims First, whose membership includes community groups, labor unions and dozens of chambers of commerce — along with utilities PG&E and Southern California Edison. Survivors who rallied this week criticized the group's utility ties.
"The survivors who rallied this week about this group are outraged by the fact that a utility-funded organization is calling itself ‘wildfire victims first,’" Balber said. "It's absolutely unacceptable for the utilities to put up a front group and try to say they're representing survivors."
Balber said the group has run ads statewide targeting legislators and has paid $6.9 million to members of the coalition.
"This is a utility-funded organization that does not represent survivors," she said. "One of the things that survivors got together this week to say is they are not speaking for us. When you see those ads, don't buy it. Governor Newsom, talk to the real survivors and don't sell us out to bail out the utilities."
Balber said Consumer Watchdog wants the Legislature to focus on reducing utility-caused wildfires rather than negotiating compensation limits.
"We need to increase mitigation both to prevent utility-caused wildfires and to protect all of our homes. And that's really what the legislature should be focusing on right now. But we're waiting on pins and needles to see if this last-minute deal is actually going to happen."
Balber said any deal would need to come together quickly, given the compressed legislative calendar.
"Anything has to happen by the end of August," she said. "We have only a month left in the legislative session. We have this last week of July and then lawmakers are back on August 3rd. And so everything has to happen within that month." Balber said survivors delivered a clear message at Friday's rally: "We need to be at the table in this conversation. Don't push something through at the last minute. Do this in the light of day."
The Source: Interview with Carmen Balber, Executive Director, Consumer Watchdog, Los Angeles Times