California Signed Legislation for Wildfire Victim Restitution

Governor Gavin Newsom signed a bill requiring state regulators to seek full compensation for utility fire survivors.

Updated on Oct. 1, 2026 in Utilities

Bold flat-color editorial illustration of a geometric ridgeline against a solid field, evoking a somber California wildfire aftermath. — Governor Gavin Newsom signed legislation requiring state regulators to seek full financial restitution for victims of California's utility-sparked wildfires. AI Illustration. Upload story photo >

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Should utility companies be legally required to provide full compensation for all fire-related losses?

Governor Gavin Newsom signed Assembly Bill 2700, which directs the California Public Utilities Commission to identify pathways to provide wildfire survivors with 100% restitution. This move aims to bridge a multi-billion dollar gap left by previous settlement funds for victims of utility-sparked fires.

Why it matters

The legislation addresses a significant financial shortfall for thousands of survivors whose claims remained partially unpaid following previous bankruptcy proceedings. It prioritizes full compensation for homes, businesses, and lives lost to fires sparked by utility equipment.

The bill targets a $5 to $6 billion funding shortfall that left survivors of PG&E-sparked fires with only 70% of their claims paid. The previous bankruptcy settlement provided $13.5 million to approximately 70,000 claimants.

The players

Gavin Newsom

He is the current Governor of California who signed the legislation into law.

California Public Utilities Commission

This state regulatory agency is now tasked with identifying pathways to secure full restitution for wildfire victims.

Pacific Gas & Electric

This utility provider sparked a series of catastrophic wildfires between 2015 and 2018 and subsequently declared bankruptcy.

The details

The bill specifically addresses the lingering impacts of major disasters, including the 2015 Butte Fire, the 2017 North Bay firestorm, and the 2018 Camp Fire. These events resulted in significant loss of life, including 85 deaths in the Camp Fire and 40 in the North Bay firestorm, leading to PG&E declaring bankruptcy in 2019.

The utility-sparked wildfires occurred between 2015 and 2018.
PG&E filed for bankruptcy in 2019.
Governor Newsom signed Assembly Bill 2700 on September 30, 2026.
A final small payment from the original settlement fund is anticipated in October 2026.

Market Landscape

This mandate represents a departure from the 2019 Pacific Gas & Electric bankruptcy settlement, signaling a shift in state policy toward prioritizing full victim recovery over previous legal settlement limits. It forces a recalibration of how utility-related liabilities are handled within the California utility sector.

Wildfire survivors who received partial compensation from earlier settlements may eventually see their claims reach 100% total value. The legislative shift aims to close the multi-billion dollar gap that has impacted thousands of affected families and businesses since 2019.

The takeaway

The signing of Assembly Bill 2700 sets a new precedent for how the state holds utility companies accountable for long-term disaster recovery costs. Victims should continue to monitor state commission proceedings to track how the mandate for full restitution is implemented.