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Los Angeles Times
23-07-2025
- Politics
- Los Angeles Times
Eaton fire could wipe out California's $21-billion wildfire fund, documents show
Damage claims from the Eaton wildfire in Altadena could wipe out the $21-billion fund California created to shield utilities and their customers from the cost of wildfires sparked by electric lines, according to newly released state documents. Investigators are seeking to determine whether Southern California Edison's equipment sparked the Jan. 7 inferno, which killed 19 people and destroyed 9,000 homes. If Edison is found responsible, 'the resulting claims may be substantial enough to fully exhaust the Fund,' state officials who administer the wildfire fund wrote in a draft annual report to the Legislature. The seven-member state Catastrophe Response Council, which oversees the fund, is scheduled to meet Thursday to discuss how potential damage claims from the Eaton fire could affect it. Concerns are already emerging that, should Edison be found liable, it would have little incentive to keep damage claims from becoming excessive since the utility itself would be spared from covering most of the costs. 'Are we impressing on the utilities that they need to settle claims with diligence?' wrote one of the council members, according to meeting materials released ahead of Thursday's meeting. 'Since the claims they settle are just passed on to us, they don't have much incentive to keep claims low.' Asked for comment on that statement, Edison spokeswoman Kathleen Dunleavy said that officials 'need to be wise and cautious about how this money is spent.' 'We agree that the wildfire fund should go to those directly affected by wildfires,' she said. The council member who raised the concern wasn't identified by name. Wade Crowfoot, California's secretary of Natural Resources, holds one of the nine council seats. His spokesman, Tony Andersen, said Crowfoot is 'engaged very closely' on the wildfire fund issue, but had no additional comment at this time. Other council members include Gov. Gavin Newsom, other state leaders and their appointees. According to the state documents, the insured property losses alone could amount to as much as $15.2 billion, according to materials released ahead of a Thursday meeting. That amount does not include uninsured losses or damages beyond those to property, such as wrongful-death claims. An earlier study by UCLA estimated losses from the fire at $24 billion to $45 billion. Newsom and legislative leaders are now talking about how to shore up the fund. The Times reported last month that one option under discussion behind closed doors is to have electricity customers pay billions of dollars more into the fund. Newsom and lawmakers created the wildfire fund in 2019, saying it was needed to protect the state's three biggest for-profit utilities from bankruptcy if their equipment sparked a catastrophic fire. Newsom said at the time that the legislation, known as Assembly Bill 1054, would 'move our state toward a safer, affordable and reliable energy future.' Six years later, however, utilities' electricity lines continue to be a top cause of wildfires in California. And in 2024, the state had the second highest electric rates in the country after Hawaii. Edison said in April that a leading theory of the cause of the Eaton fire is that one of its decades-old transmission lines, last used in 1971, somehow became reenergized and sparked the fire. The investigation into the cause of the fire is continuing. Already lawyers have filed dozens of lawsuits against Edison on behalf of families who lost their homes, nearby residents who say they were harmed by toxins in the smoke and governments that lost buildings and equipment. Under the 2019 law, Edison would be allowed to settle those lawsuits. Then the state fund would reimburse the company for all or most of those costs. The Palisades fire, which also ignited Jan. 7, isn't covered by the wildfire fund because Pacific Palisades is served by the Los Angeles Department of Water and Power, a municipal utility. Newsom's staff didn't respond to questions about how the fund's life could be extended and whether he believed AB 1054 should be amended so that excessive settlements or attorney fees aren't allowed to deplete the fund. One idea being debated is to have the 30 million Californians served by Edison, Pacific Gas & Electric, and San Diego Gas & Electric pay billions of dollars more into the fund. That plan could involve extending a monthly surcharge of about $3 on electricity bills beyond its planned expiration in 2035. Officials at the California Earthquake Authority, which serves as administrator of the wildfire fund, say they are also worried that attorney fees could eat up a large portion of the money. Attorneys can receive 30% to 40% of the victim settlements, according to a 2024 study. An additional 10% to 15% can go to lawyers defending the utility from fire claims, the study said. That means as much as 50% of settlement amounts could go to legal fees, the paper said. The consolidated lawsuit against Edison in Los Angeles County Superior Court lists more than 50 law firms involved in the litigation. Officials at the Earthquake Authority say the Legislature may have to change the 2019 law to limit attorney fees or give priority to some settlements over others. For example, Wall Street hedge funds have been offering to buy claims that insurance companies have against Edison. The funds are gambling that they can get more from the state's wildfire fund in the future than they are paying insurers for the claims now. Council members discussed in May whether AB 1054 should be amended so that claims from Californians who lost their homes be given precedence over those owned by Wall Street investors trying to profit from the fire.
Yahoo
05-03-2025
- Yahoo
Los Angeles County sues Southern California Edison, alleging utility's equipment sparked wildfire
LOS ANGELES (AP) — Los Angeles County said Wednesday that it's suing Southern California Edison, alleging the utility's equipment sparked January's Eaton Fire, which destroyed more than 9,400 structures and killed 17 people in the Altadena area. The lawsuit seeks to recover costs and damages sustained from the blaze that damaged 'essential community infrastructure' and 'massively impacted the County's natural resources, harmed the environment and wildlife, and threatened public health," the county said in a statement. Additional costs have been incurred by county departments for ongoing support in assisting residents recovering from the fire's destruction, according to the lawsuit. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. 'The County's case is essential to the restoration and rebuilding process for the community, including residences and businesses, to recover from the devastation,' the statement said. Edison was reviewing the lawsuit and 'will address it through the appropriate legal process,' utility spokesperson Kathleen Dunleavy said Wednesday. The fire's cause is still under investigation. The complaint alleges that witnesses, photos, and videos indicate the fire started directly under Edison transmission lines in Eaton Canyon. The county seeks to recoup costs and receive compensation for destroyed infrastructure, recreational areas, parks, road damage, cleanup and recovery efforts, flood and mudslide prevention, workers compensation claims, overtime for workers, lost taxes and more. 'We are committed to seeking justice for the Altadena community and the taxpayers of Los Angeles County,' County Counsel Dawyn R. Harrison said in a statement. The County, the County Flood Control District, and the County's Consolidated Fire Protection District are the plaintiffs in the case. The cities of Pasadena and Sierra Madre are also filing suits against Edison for damages to taxpayer resources and public infrastructure incurred from the Eaton Fire, according to the county.
Yahoo
13-02-2025
- General
- Yahoo
Did cutting power actually start the Eaton Fire?
A report in the Los Angeles Times indicates that it may have been Southern California Edison's attempt to cut off power ahead of the Eaton Fire that actually started the deadly blaze. Edison was warned three years ago 'about the risk that a power shutdown would overload other transmission lines, potentially causing dangerous overheating and sparks,' the Times reports, citing public records obtained by the paper. 'Fixes that some experts said could have mitigated the risk were repeatedly delayed, the records show, with scheduled work never completed,' the Times explains. Lawsuits allege SoCal Edison equipment sparked Eaton Fire When the Eaton Fire began on Jan. 7, the Times reports that Edison's 'lines over Eaton Canyon saw a momentary increase of electrical current about the same time as the fire began.' Lawsuits have alleged that Edison is responsible for the blaze that killed 17 people, and officials are investigating that possible origin. When speaking with the Times, Kathleen Dunleavy, an Edison spokeswoman, said the investigation into the fire's cause is ongoing, and 'we don't know what caused' it. 'We are exploring all possibilities, including the potential involvement of our equipment,' she said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
CBS News
28-01-2025
- General
- CBS News
SoCal Edison reports fault on "distant line" before Eaton Fire in letter to state regulators
As authorities continue their investigation into the Eaton Fire, Southern California Edison said that their analysis found a "fault" on a line at least five miles away from the preliminary ignition point. "Our preliminary analysis found no faults on the transmission lines that run through the canyon," SCE spokesperson Kathleen Dunleavy said after a Glendale press conference Monday morning. "On a deeper analysis into more distant lines, we did identify a fault." SoCal Edison found that there was a fault detected on the line between the Eagle Rock and Gould substations, according to a new California Public Utilities Commission filing submitted on Jan. 27. The Gould substation is "five circuit miles" away from the preliminary ignition area, while the Eagle Rock substation is "12 circuit miles away," according to the CPUC report from SoCal Edison. In the CPUC report, the utility company said the Eagle Rock-Gould fault caused a "momentary and expected increase in current" in its system. Since its "transition system is networked," the current increase was detected on the four energized lines connected to two transmission towers near the Eaton Fire origin area. However, it "remained within the design limits and operating criteria for these circuits and, as intended, did not trigger system protection on these lines." In its incident report sent to the CPUC on Jan. 12, SoCal Edison disputed the claim that its equipment started the fire, citing "no interruptions or electrical or operational anomalies until more than one hour after the reported start time of the fire." "To date, no fire agency has suggested that SCE's electric facilities were involved in the ignition or requested the removal and retention of any SCE equipment," SoCal Edison wrote in its report from Jan. 12. In the latest CPUC letter, SoCal Edison said it collected metal items found near the Eaton Canyon towers and items from "an encampment located approximately 300 yards downhill from the towers." They said they are preserving the evidence at a secure location. Southern California Edison has agreed to preserve more electrical equipment that is miles away from where investigators believe the Eaton Fire started, following a court hearing between the utility company and attorneys representing those affected by the fire. "We were forced to file an emergency order with this judge," attorney Ali Moghaddas said following the Monday morning hearing. "Thankfully, this judge agreed with us." The filing from Edelson PC, Moghaddas' firm, expands upon last week's ruling that ordered SoCal Edison to preserve equipment within one square mile west of Eaton Canyon, where fire investigators believe the wildfire started. The utilities will preserve the equipment for 21 days starting Monday. "They now have to preserve over six miles worth of equipment that we believe is involved in this fire," Moghaddas said. The weekend before the new CPUC letter, Edelson released security camera video from an Altadena gas station that they claim shows electrical arcing and sparking on an SCE tower on Jan. 7 at 6:11 p.m., seven minutes before the California Department of Forestry and Fire believes the Eaton Fire started. Dunleavy said on Monday the company became aware of the surveillance video on Saturday, a day before the New York Times published an article on Jan. 26. The company said it will review the footage "to assess any potential relation between the flashes shown in the video and SCE's facilities in Eaton Canyon." "While our preliminary investigation uncovered no obvious damage to SCE's facilities, based in part upon this new video and statement made by plaintiffs' counsel claiming damage, we continue to assess the condition of our equipment in Eaton Canyon," the company stated in the CPUC letter. The Los Angeles County Fire Department is leading the investigation with help from several agencies, including Cal Fire. They have not determined what caused the fire and the investigation remains ongoing.
Washington Post
27-01-2025
- Washington Post
California utility reports fault on power line miles away from origin of deadly Eaton fire
GLENDALE, Calif. — Southern California Edison on Monday reported a fault on a power line connected miles away from ones located near the origin of the Eaton Fire, the deadly blaze that ignited outside of Los Angeles on Jan. 7 and killed at least 17 people. Edison says that there is still no evidence that its equipment caused the blaze, which has destroyed more than 9,000 structures in and around the community of Altadena. The official investigation into the fire's cause has not been completed. The utility's new filing with the California Public Utilities Commission comes on the same day as a court hearing in a case filed by attorneys for a homeowner whose property was destroyed in the fire. The attorneys allege the utility's equipment sparked the fire, pointing to video taken during the fire's early minutes that shows large flames beneath electrical towers. The attorneys have now introduced new video they say shows arcing and electrical sparking on a transmission tower in Eaton Canyon just before the wind whipped the fire into a fast-moving and destructive blaze. They say the video came from security footage of a gas station. The Eaton Fire was one of two massive and deadly blazes that sparked on Jan. 7 amid hurricane-force winds that whipped across the parched Los Angeles region. At least 28 people have died and firefighters have continued battling the blazes for weeks. The Eaton Fire is now nearly contained, meaning firefighters almost have it surrounded, as the region gets its first rain in months. In its new filing, Edison reported that the fault occurred at 6:11 p.m. While those lines that experienced the fault do not traverse Eaton Canyon, they are connected to the system, which did experience a surge, the utility reported. 'Preliminary analysis shows that, because SCE's transmission system is networked, the fault on this geographically distant line caused a momentary and expected increase in current on SCE's transmission system, including on the four energized lines (in the fire area),' SCE's filing said. 'The current increase remained within the design limits and operating criteria for these circuits and, as intended, did not trigger system protection on these lines.' Attorneys for Altadena resident Evangeline Iglesias argued that, together, the fault and gas station video provide 'evidence that SCE's equipment in Eaton Canyon was the source of the initial ignition, and there is a near-certainty that physical evidence of the cause exists somewhere along the SCE transmission lines that run parallel to the line on the tower that erupted in flame.' Video and photos taken by residents also captured flames beneath Edison's electrical towers in the Eaton Canyon area in the early minutes of the fire. One resident said he heard a loud pop at the outset of the conflagration. Kathleen Dunleavy, a spokesperson for Southern California Edison, said the company received the footage of the gas station video from The New York Times on Saturday night and contacted authorities to ensure they had the video as well. She said it was premature for them to comment on the footage as experts investigated what caused the blaze. 'As of today, January 26, no one knows what caused the Eaton Fire,' Dunleavy said in an email Sunday. 'Our investigation is ongoing, and we will continue our longstanding commitment to transparency.' Iglesias' attorneys have accused the utility of destroying evidence . A judge last week ordered Edison to preserve evidence in the area, concerned that the utility is discarding equipment that may hold clues to the fire's origin. SCE's attorneys say the company has preserved evidence in the area where the fire originated as its crews work to restore power to about 2,000 homes in Altadena that are still dark. In an earlier filing to the CPUC, Edison reported two days after the fire started that it had not received any suggestions that its equipment was involved in the ignition. 'Preliminary analysis by SCE of electrical circuit information for the energized transmission lines going through the area for 12 hours prior to the reported start time of the fire shows no interruptions or electrical or operational anomalies until more than one hour after the reported start time of the fire,' the utility reported. This assertion was repeated in the utility's Monday filing.
