SB926: Relating to wildfires resulting from the fault of an electric company; declaring an emergency.

Legislative Summary

Bans the recoupment of certain costs that a power company incurs from claims based on a wildfire. (Flesch Readability Score: 65.1). Prohibits the recovery from customers of certain costs and expenses that an electric company incurs if a court or jury finds that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. [Prohibits an electric company from paying or distributing dividends, income, interest or profits or paying, distributing or repurchasing stock or other ownership interest to any person or individual with an ownership or beneficial interest in the electric company if the electric company owes any debt on an outstanding judgment that is based on a finding by a court or jury that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company.] [Sets the rate of interest on the judgment at nine percent per annum to accrue from the date the wildfire was ignited if a plaintiff establishes that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company.] [Provides that an electric company is liable for all taxes that may be owed by a prevailing party on a judgment that the electric company has not satisfied by January 1, 2026, for a judgment that is based on a finding by a court or jury that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company.] Requires an electric company to request that the Public Utility Commission open an investigation if the electric company owes more than a certain amount of debt on an outstanding judgment or judgments that are based on a wildfire that resulted from the negligence or a higher degree of fault on the part of the electric company and the electric company plans to make a payment, distribution or repurchase related to dividends, income, interest, profits, stock or other ownership interest. Directs the commission to suspend the payment, distribution or repurchase during the investigation and allows the commission to issue a final order that imposes restrictions, requirements or conditions. Allows a plaintiff to file motions in a civil action based on a wildfire caused by an electric company to require the electric company to file a security or bond if the electric company has been found to be liable to other plaintiffs for damages, losses or other harms resulting from the same wildfire, to have prejudgment interest accrue from the date the wildfire caused damages, losses or other harm and for a supplemental judgment for any additional tax liabilities that the plaintiff may owe on the underlying final judgment. Requires an electric company to apply for a wildfire safety certification. Directs the commission to issue a certification if the applicant is implementing a wildfire protection plan and meets certain requirements. Provides that a certification establishes that the applicant has implemented wildfire policies and practices consistent with wildfire safety standards. Provides that a certification does not establish immunity against claims for damages resulting from a wildfire. Directs the commission to commission a study to examine issues related to catastrophic wildfire risk and recovery and develop scenarios for a balanced solution. Directs the commission to provide an interim report on the study's findings and recommendations to the committees of the Legislative Assembly related to energy and environment during the 2026 regular session and provide recommendations for a stakeholder process to follow the final study report. Declares an emergency, effective on passage.