Newsom returns to a defining California fight: Who pays for wildfire damage?

SACRAMENTO, Calif. (AP) — The bookends of California Gov. Gavin Newsom’s nearly eight years in office have been defined by a crucial question: Who should cover the cost of damage from wildfires caused by utility equipment?

The most destructive wildfire in state history, a blaze that killed 85 people and destroyed more than 18,000 buildings in Northern California, started two days after Newsom won the governorship in 2018. Investigators determined it was caused by Pacific Gas & Electric equipment. Facing tens of billions of dollars in liability, the giant utility filed for bankruptcy just weeks after Newsom’s inauguration.

Months later, Newsom signed a law creating a $21 billion fund, paid for by utility shareholders and ratepayers, to help utilities pay for wildfire damages if they take certain safety measures.

Now, as the final legislative session of his governorship ends, Newsom is trying to broker a deal with lawmakers aimed at further shielding utilities from financial trouble if their equipment sparks a wildfire. His push comes as another major utility, Southern California Edison, faces claims fro...