HB 2407 Summary

• Creates a mandatory risk-based wildfire protection plan requirement for all electric utilities, which must be filed with and approved by the Public Utilities Commission by December 31, 2024

• Establishes a securitization framework allowing electric utilities to finance wildfire protection costs through bond issuance, with principal and interest recovered through nonbypassable wildfire protection fees charged to all ratepayers in the service territory

• Requires wildfire protection plans to include risk assessments, mitigation strategies, vegetation management procedures, power shutoff protocols, infrastructure hardening measures, workforce preparedness, and performance metrics

• Authorizes the Public Utilities Commission to approve financing orders within 90 days of application and establish procedures for true-up adjustments to wildfire protection fees to ensure full cost recovery, with bond repayment terms not exceeding 30 years

• Imposes civil penalties on utilities that fail to comply with approved wildfire protection plans and allows recovery of catastrophic wildfire costs through the securitization framework when authorized by the Commission