SB1201 Summary

• Establishes a Wildfire Recovery Fund outside the state treasury to provide administrative claims processing for property damage from catastrophic wildfires allegedly caused by regulated utilities, as an alternative to litigation.

• Requires electric utilities with approved wildfire risk mitigation plans to contribute to the fund; investor-owned utilities contribute specified amounts from both ratepayers and shareholders, with potential securitization of customer-funded portions.

• Creates an administrative claims process where qualified claimants (property owners, renters, businesses, insurers) can submit claims for uninsured economic damages without proving negligence, with the executive director making settlement offers.

• Limits utility liability by capping replenishment obligations at 20% of transmission and distribution equity rate base over any three-year period, and prohibits joint and several liability for qualifying damages.

• Authorizes the Public Utilities Commission to review utility conduct post-wildfire and order replenishment of the fund if imprudent actions caused or contributed to the catastrophic wildfire; includes provisions for securitization of wildfire recovery costs through bond issuance.