Southern California Edison Elects to Participate in Wildfire Insurance Fund
July 25 2019 - 4:05PM
Business Wire
Southern California Edison today announced its commitment to
contribute to the state’s wildfire insurance fund, authorized by
the recently passed comprehensive wildfire legislation known as
Assembly Bill 1054 (Holden, D-Pasadena).
California’s investor-owned utilities are required to inform the
California Public Utilities Commission (CPUC) if they will be
participating in the fund within 15 days after July 12 when Gov.
Newsom signed the bill into law. SCE will make its first
contribution to the fund by Sept. 10, as mandated by the
legislation. SCE’s initial contribution to the fund will be
approximately $2.4 billion, with a total of $10.5 billion expected
to be contributed by all of the state’s investor-owned utilities.
SCE will contribute approximately $95 million to the fund on Jan. 1
of each year for 10 years.
“We appreciate the significant leadership that Gov. Newsom and
the Legislature have shown and their willingness to act with
urgency to address this wildfire crisis through the passage of
Assembly Bill 1054 and companion measures. The state must ensure
careful implementation and make some refinements in the future to
ensure their success; we will work hard to see those changes made,”
said Pedro J. Pizarro, president and CEO of Edison International,
SCE’s parent company. “This important legislation, with its crucial
establishment of an insurance fund, works toward restoring
California’s regulatory framework to provide the financial
stability that utilities require to invest in system safety,
reliability and resiliency while continuing to drive toward a clean
energy future.”
AB 1054 establishes a wildfire fund to reimburse utilities for
payment of third-party damage claims arising from certain wildfires
that exceed, in aggregate in a calendar year, the greater of $1
billion or the utility’s own insurance coverage.
SCE stated that it expects to fund its contributions to the
insurance fund through a combination of debt financings and equity
contributions from Edison International. SCE’s contributions to the
fund will not be paid by electricity rates from customers and will
be excluded from the company’s authorized capital structure.
About Southern California Edison
An Edison International (NYSE:EIX) company, Southern California
Edison is one of the nation’s largest electric utilities, serving a
population of approximately 15 million via 5 million customer
accounts in a 50,000-square-mile service area within Central,
Coastal and Southern California.
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Media Contact: Gloria Quinn, (626) 302-2255
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