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Bloomberg News: California Governor seeks an additional $18 billion to fund utilities' wildfire funds

Bloomberg News reported on Wednesday that California Governor Gavin Newsom has proposed legislation to boost the wildfire fund of the state with an extra $18 billion. The plan is well-known by sources.

Could not verify immediately the report.

California lawmakers created the California Wildfire Fund in 2019, which is managed by the California Earthquake Authority. This fund, which has a $21 billion budget, will provide more immediate and substantial compensation to victims of certain utility-caused fires, while protecting the power companies from large claims.

The report stated that electricity ratepayers will contribute half of the money via a monthly charge, while the remaining half will be funded by the utility companies who benefit from the fund. These include Edison International, PG&E, and Sempra.

According to the report, the proposal is still in draft form. It may be changed.

Newsom's Office said that they continue to work on a policy to stabilize California's Wildfire Fund in order to help wildfire survivors recover and protect California utility customers.

Newsom's Office, Edison, PG&E, and Sempra didn't immediately respond to a?request for comment. (Reporting by Anusha Shah in Bengaluru; Editing by Himani Sarkar)

(source: Reuters)