Jeffrey Nadrich, Founder and Managing Attorney of Nadrich Accident Injury Lawyers, opposes the utility bailout that California Governor Gavin Newsom is alleged to have proposed in the wake of 2025's devastating Southern California wildfires.
The proposal could have major implications for Eaton Fire survivors pursuing compensation through lawsuits against Southern California Edison.
According to CalMatters, Newsom is allegedly working on a bailout for utility companies which would:
- Limit financial compensation for the pain and suffering of wildfire victims
- Eliminate the right of insurance companies to recover the costs of wildfires from utilities
In addition, according to FOX KTVU, the bailout would allegedly cap or eliminate how much money utilities would have to pay the families of those who died in the wildfires.
"Newsom's allegedly proposed bailout would shift the costs of utility companies' negligence from utility companies to wildfire victims and insurance buyers," Nadrich said.
"If insurance companies aren't repaid by utilities that cause wildfires, everybody will pay more for insurance," Nadrich added.
Newsom, along with legislative leaders, is allegedly attempting to negotiate an end-of-session bailout for utility companies behind closed doors, according to nonprofit Consumer Watchdog, who claims the bailout would:
- Reduce the accountability of utility companies
- Limit the legal rights of wildfire survivors
- Transfer the financial burden of wildfires onto the public
According to Consumer Watchdog, utilities PG&E, Edison and Sempra have spent $16.7 million lobbying California lawmakers in the first six reporting quarters of the 2025-2026 legislative session, the most they have ever spent.
During Newsom's administration, the utilities have also spent more than $127.6 million on lobbying, campaign contributions and political committees.
The alleged bailout proposal heavily rests on a study prepared by firms who performed work for Edison relating to the Eaton Fire, according to Consumer Watchdog.
"The Eaton Fire killed 19 people, destroyed over 9,000 structures and caused over $27.5 billion worth of damages, and Newsom's alleged bailout seeks to shift this massive cost from Edison, who CAL FIRE just concluded is responsible for the fire, to wildfire victims who are still struggling to get back into their homes and make ends meet," Nadrich said.
About Jeff Nadrich
Jeff Nadrich is the Founder and Managing Attorney of Nadrich Accident Injury Lawyers, a law firm that supports victims of California wildfires, helping them to recover compensation for property damage, evacuation costs, medical bills, lost wages, pain, suffering and more. The law firm has resources available for victims of California wildfires and has 17 offices in California.
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