09/11/2026
California Governor Gavin Newsom and his family have benefited from hundreds of thousands of dollars of donations from California’s large utilities. So, it is no surprise that he tried to protect his benefactors from the consequences of California wildfires– even fires caused by utility equipment. Over the course of Newsom’s political career, corporate and executive donations from PG&E, Edison Electric, SDG&E, and S0CalGas have supported his campaigns, his ballot initiatives, and he and his wife’s favorite charities.
Faced with the imminent depletion of California’s multi-billion-dollar wildfire insurance fund, Newsom fought for legislation that would limit the compensation that utilities owe to fire victims, and shift the cost to insurance companies. The higher cost to insurance companies would be passed along to homeowners in the form of higher premiums. Utility shareholders would avoid huge costs which would damage profitability, and even potentially lead to bankruptcy. Legislation such as this – which was being hammered out behind closed doors– is exactly what corporate donors hope to buy with their thousands and millions in spending.
However, the Governor backed down as legislators from his own party refused to accept the bill. Consumer advocates, insurance companies, and organized resistance from wildfire victims forced Newsom to accept a narrower deal, SB 492, which did not amount to a subsidy for the utilities. SB 492 instituted a "fast-pay" claims program with processing deadlines; retained survivors’ right to sue the utility; banned private equity and hedge fund investment in wildfire claims; and, sensibly, denied utility CEO bonuses in years their companies caused fatal fires.
https://consumerwatchdog.org/energy/utilities-break-california-lobbying-record-under-newsom-while-former-aides-lead-utility-backed-wildfire-coalition/
https://www.washingtonpost.com/business/2019/11/11/pge-helped-fund-careers-calif-governor-his-wife-now-he-accuses-utility-corporate-greed/
https://www.latimes.com/business/story/2026-08-29/la-fi-newsom-utility-wildfires
New disclosures show utilities spent a record $16.7 million lobbying Sacramento through the first six quarters of the 2025–2026 legislative session as…