HB 3854
Prohibits the recovery from customers of certain costs and expenses that a public utility incurs as a result of negligence or a higher degree of fault on the part of the public utility.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill prohibits utility companies from recovering costs and expenses from customers if those costs result from the utility’s negligence or higher degree of fault. It requires electric utilities to report fire-related incidents to state agencies and allows these reports to be used as evidence. The bill also clarifies the types of economic damages that can be recovered for property damage caused by wildfires, allowing for the use of objective valuation methods. It amends existing law to address wildfire liability and ensure accountability for utility companies.
Key provisions
- Prohibits utilities from recovering costs related to negligence or fault.
- Requires investor-owned electric utilities to report fire incidents to state agencies.
- Allows incident reports to be used as evidence in legal proceedings.
- Specifies recoverable economic damages for wildfire-related property damage, including use of objective valuation.
- Defines ‘economic and property damage’ and ‘fair market value’ for legal purposes.
- Establishes liability for utility companies causing wildfires, potentially doubling damages if the incident involves recklessness or negligence.
- Addresses the application of existing laws regarding wildfire claims and remedies.
- Clarifies that noneconomic damages are recoverable for wildfire-related harm.
Who is affected
- Public Utility Customers
- Electric Utility Companies (specifically investor-owned)
- Homeowners and Businesses affected by wildfires
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