(Reuters) – California Govin Gavin Newsom on Friday suggested a new fund to pay for fire damage and said he would hold the state's largest tool more responsible for insuring the growing number of blisters in the state.
The creation of a fund that would allow tools to pay for damaging claims sent to PG & E Corp., the shares rise nearly 12% before closing 3.95% higher Friday.
"PG & E is a textbook example of what happens when a tool does not invest in security after many deadly reminders to do so for many years, says a report released by Gov. Newsom.
PG & E said in a statement that it is "embracing the call to change" and engaged in resolving the allegations of the victim just and continuously.
Gov. Newsom's report calls for shifting responsibility for fire damage to an error-based system. inverse condemnation, exposing the state's tools for debts from fires, regardless of their negligence, as long as their equipment is involved.
The current system ran PG & E to seek bankruptcy protection in January, as it was in debt
Spread the Costs
The Governor's Report proposes to create two means to help tools to pay for damaging claims claims and spread the cost to a greater extent among stakeholders.
Another major tool, Southern California Edison Co., said in a statement that it is "encouraged by the broad scope" of Gov. Newsom's report ", reflecting the need to address fire protection and regulatory reform."
Shares of Edison International, the parent company of Southern California Edison, rose 7.2%.
Travis Miller from Morningstar Research Services LLC said the new s was positive for the shareholders, although there is "a long way forward for implementing policies". Government support for the tools should remedy some of the market's concerns about future debt, "he said.
The report was severely critical for PG & E saying it is" taking advantage of the bankruptcy process to promote investors' interests over fire victims and other stakeholders "
The state will monitor and intervene in the bankruptcy proceedings to protect California's interests, it said.
Federal Forest Land
Damage estimates for the 201
"The current cost allocation system associated with catastrophic fires caused by new infrastructure, but exacerbated by drought, climate change, land use policy, and lack of forest management – is unsustainable for both utility crews and spring. economy, "the report says.
It calls on the federal government to better manage their forests as owners of 57% of California's forest land.
In January, President Donald Trump threatened to suspend federal liberation to California for fires for what he called mismanagement of state forests.
The Federal Emergency Management Agency provides assistance to survivors after fires in November jointly damaged or destroyed over 20,000 structures and killed at least 89 people.
The greatest fire was Camp Fire, which destroyed most of the Northern California paradise and killed at least 86 people – the deadliest fire in the United States for at least a century.
More than 25 million hectares of California's wilderness are classified as under very high or extreme fire threat. About a quarter of the state's population, or 11 million people, live in that high-risk area, the report said.