S.B. No. 2025 amends the Utilities Code to enhance risk mitigation planning and liability management for electric service providers, particularly in relation to wildfire risks. The bill allows electric utilities to self-insure against potential liabilities and catastrophic property losses, including those from wildfires, that were not reasonably anticipated. It introduces new criteria for the approval of self-insurance plans by the Public Utility Commission, emphasizing the need for plans to be in the public interest and to consider the potential extent of wildfire losses. Additionally, the bill specifies that utilities cannot self-insure for damages caused by wildfires if they acted intentionally, recklessly, or with gross negligence.

Furthermore, the bill establishes a requirement for electric utilities and cooperatives operating in wildfire risk areas to file a wildfire mitigation plan with the commission. This plan must include details on vegetation management, operations to reduce wildfire ignition, and community outreach efforts. The commission is tasked with approving or modifying these plans within 60 days of submission. Importantly, utilities with an approved plan are granted an affirmative defense against liability for damages caused by wildfires, provided they comply with their approved mitigation measures. The bill aims to improve safety and accountability in the electric service sector while addressing the growing threat of wildfires.

Statutes affected:
Introduced: Utilities Code 36.064 (Utilities Code 36)