eaton fire

A group claiming to represent California fire survivors began sending mailers and paying for social media ads this spring, calling on lawmakers to take action to reduce the rising cost of wildfires.

“Contact your legislator and tell them we need to fix our wildfire problem to make California more affordable,” said a mailer sent this month by the group called Wildfire Victims First.

“Stand with wildfire victims,” the group’s website states, urging people to join its cause.

The group was created with money from California’s three biggest for-profit electric utilities — Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric — which government investigators found ignited at least six of the state’s 20 most destructive wildfires.

The corporate campaign has angered wildfire survivors, including some of the thousands of families in Altadena who lost their homes in last year’s Eaton fire. The blaze, which killed 19 people, remains under investigation. Edison has said its century-old transmission line is the likely cause.

The utility-funded group is lobbying in Sacramento for proposals in a study that Gov. Gavin Newsom ordered to guide lawmakers in writing wildfire-related bills. The study largely ignored utilities’ responsibility for igniting fires.

Among its dozens of proposals is limiting amounts victims can get for pain and suffering, capping fees for attorneys representing survivors and requiring property insurers to bear more of the cost of utility-sparked fires.

”Each proposal would shift more of the cost of catastrophic fires away from the corporations responsible and onto survivors, policyholders, taxpayers, and the public,” wrote Joy Chen of Every Fire Survivor’s Network in a letter to Newsom this week.

Chen wrote that the industry-funded Wildfire Victims First campaign “created the appearance that wildfire survivors supported” the findings of the study. “We do not.”

The 15-page letter was signed by other organizations including Public Citizen, Consumer Watchdog and the National Day Laborer Organizing Network.

The coalition is urging Newsom and lawmakers to do more to hold utilities accountable for the fires they ignite, so they don’t happen again.

“The Eaton fire devastated Altadena, home to one of California’s most historic Black communities,” said Brandon Lamar, president of NAACP Pasadena, who signed the letter. “Now as survivors fight to rebuild, they should not be asked to bear the cost of protecting the corporations whose failures devastated their community.”

Edison told its shareholders in its annual report that it believes it acted as a “reasonable” utility operator before the fire. If state regulators agree it acted reasonably, Edison will be reimbursed for payments it makes to victims by a $21-billion wildfire fund, which Newsom created through legislation in 2019.

And if Eaton fire damages exceed the $21-billion fund, Edison’s customers will pay the rest through their electric rates under fine print embedded in last year’s Senate Bill 254 — amendments that Newsom and lawmakers added so late that the legislative session had to be extended.

State Sen. Sasha Renee Perez, a Democrat who represents Altadena, said she opposed any bill that would limit payments to victims for pain and suffering.

“I can’t think of a more offensive thing to propose when I have friends who lost family members in the fire,” she said.

Anthony Martinez, a spokesperson for Newsom, said the governor and lawmakers were talking about new legislation because the study “concluded that the current system is unsustainable and not working for fire survivors, utility customers or insurance policyholders.”

“It’s essential that we work to address the complex and interconnected challenges Californians face from the increasing risk of catastrophic wildfire,” Martinez said.

He didn’t disclose what specific measures the governor supports.

Nathan Click, who directs the corporate Wildfire Victims First campaign, said that the group launched after the study found that “payouts to financial middlemen — like trial attorneys, hedge funds and insurance companies — are often paid out before wildfire victims receive a single dollar.”

“Shockingly, trial attorneys can take up to 40% of wildfire victims’ settlement awards,” he said.

Click said the group was advocating for legislation that reduces wildfire risk, expands access to affordable property insurance and ensures quick compensation to victims.

The utility-paid campaign has been joined by electrical worker unions, a powerful force in Sacramento, as well as the California Building Industry Assn. and dozens of other groups.

The Eaton fire was the second most destructive wildfire in state history.

Pedro Pizarro, Edison International’s chief executive, said last year that a leading theory of the fire’s cause was that an idle transmission line in Eaton Canyon was briefly reenergized through a process called induction, sparking the fire. Induction happens when the magnetic field of a nearby live wire causes power to jump to inactive equipment.

Edison kept the idle transmission line in place despite not using it for 50 years. The state’s utilities had known about the risks of leaving unused equipment in place. In 2019, the Kincade fire in Sonoma County, which destroyed hundreds of homes, was ignited by an idle transmission line owned by PG&E.

Despite the billions of dollars in damages caused by the Eaton fire, Edison’s profits soared last year by more than 200% — from $1.3 billion in 2024 to $4.5 billion.

The company also paid its top executives more. Pizarro received $16.6 million in cash, stock and other compensation, up 20% from 2024.

“If the financial rewards for repeated catastrophic failure are record profits, record executive compensation, and record shareholder dividends,” Chen wrote in the letter to Newsom, “then catastrophic failure is exactly what this system will keep producing.”

New surveillance footage and other evidence from Southern California Edison confirms that a century-old, idle transmission line that the utility failed to remove ignited last year’s deadly Eaton wildfire, lawyers for insurers said in a court filing.

Video obtained from a surveillance camera at Gerrish Swim & Tennis Club in Pasadena shows two bright flashes occurring in the location of the tower holding the idle line at 6:11 p.m. on Jan. 7, 2025.

The flashes correspond to the time that Edison recorded two faults, three seconds apart, on another transmission line more than five miles away, the lawyers said in the filing, citing new data provided by the utility.

Soon after the faults, residents nearby recorded videos of a fire burning at the base of the tower, which is known as M16T1.

“Southern California Edison has spent the last sixteen months attempting to forestall the inevitable legal consequences of razing a large swath of the communities of Altadena and Pasadena to the ground,” the lawyers wrote in the filing.

“The Eaton Fire could not have occurred if SCE had simply disassembled and removed Structure M16T1,” the lawyers added.

The lawyers filing the May 18 motion represent property insurers that paid tens of millions of dollars to residents who lost their homes. Their motion asks the judge to order a judgment in the insurers’ favor that would make Edison liable for the damage under inverse condemnation, a legal doctrine in the state constitution.

Courts have ruled that the doctrine requires private utilities such as Edison to pay for property they destroy, even if they haven’t been found to have acted negligently.

Kathleen Dunleavy, a spokeswoman for Edison, said the company did not learn about the existence of the swim club video until the lawyers submitted it in court with their filing.

“It’s very disappointing and inappropriate that this video was not produced in discovery,” she said. “We hope that video has been turned over to the appropriate authorities.”

Dunleavy said the company believes the lawyers’ motion “is wrong on the facts and the law.”

“We’ll respond more fully in our own court filing,” she said.

Attorneys for the insurers did not respond to requests for comment.

In a February 2025 letter to state regulators, Edison said it had detected a single fault on a line more than five miles away from Altadena about 6:11 p.m. on the night the fire ignited. It said the fault caused a brief surge of electricity on its four live transmission lines in Eaton Canyon.

The company said in the letter that it was looking into whether the power surge could have caused electricity to jump to the idle line that runs parallel to the live wires through a process called induction.

Pedro Pizarro, chief executive of Edison International, later said that a leading theory of the fire’s ignition was that the idle line became energized briefly through induction, sparking the fire.

At the same time, the company has not accepted blame for the fire, saying repeatedly that its own confidential investigation into the cause, as well as a separate inquiry by Los Angeles County and state fire officials, is continuing.

According to the court filing, evidence obtained by the lawyers shows that the company stopped using the transmission line in 1971 and designated it as “out-of-service.”

“The declaration of Out of Service shall only be used when the line … or piece of equipment is expected to remain permanently out of service,” Edison stated in an internal document known as a system operating bulletin, according to the filing.

Edison executives told The Times last year that they left the line in place because they believed it might be needed in the future.

“We have these inactive lines still available because there is a reasonable chance we’re going to use them in the future,” Shinjini Menon, Edison’s senior vice president of system planning and engineering, said then.

Dunleavy said Friday that the idle lines are kept in place for a variety of reasons, including to preserve the right of way Edison had obtained to construct them and to support future needs for more electricity as the state aims to meet its clean energy goals.

Last year, The Times reported that state regulators, knowing old electric lines posed hazards, proposed a rule in 2001 that would have forced Edison and other utilities to remove idle lines unless they could prove they would use them in the future.

Under pressure from Edison and the other companies, the rule was weakened to allow utilities to keep the unused lines in place until executives decided they were “permanently abandoned.”

In their May 18 filing, the lawyers said Edison executives had known about the risk of induction for more than 100 years. They cited a 1923 contract between Edison and Pacific Electric Railway Co. that said that “leakage of electricity or induction from or between” conductors was an inherent risk of operating multiple electrical circuits in proximity.

“That’s why SCE grounds idle lines and inspects them,” Dunleavy said of the risk.

Copies of Edison’s fault records from that night, its operating bulletin and thousands of other documents, including depositions, are sealed from public view under a protective order that Edison and lawyers for the victims asked the judge to approve last year.

The L.A. County district attorney is investigating whether Edison should be criminally prosecuted for its actions in the fire, the company said in an investor filing this year.

The fire killed at least 19 people and left thousands of families homeless.

A hearing on the lawyers’ motion is scheduled for Aug. 11 in L.A. County Superior Court.

Edison has offered to compensate victims of the fire who give up their right to sue the utility.

The company said last week that it had so far received more than 3,500 claims from about 10,000 people. It said it had extended nearly 1,900 offers to those people, totaling more than $650 million.

Many victims have refused the offers, saying they don’t fully cover their losses from the devastating blaze.

Edison has told its investors it expects to actually pay little or nothing for the fire because of a 2019 state law. The company anticipates that it will be reimbursed for its payments to victims by a $21-billion fund created by the law known as
Assembly Bill 1054.

The law shields utilities from the damages of fires sparked by their equipment as long as they follow certain requirements, including submitting a plan to state regulators for reducing the risk that their equipment sparks fires. Regulators review the plan and track whether the utilities are making progress in reducing the fire risk.

Since 2019, Edison has spent billions of dollars on making its lines safer, including by undergrounding them and installing insulated wires. Those costs continue to raise customer electric bills.

In the last 10 years, Edison’s rates increased by 101%, according to an April report by the public advocates office at the California Public Utilities Commission.

Despite the spending, Edison’s electric lines sparked more fires in 2024 than in 2019. The company blamed the increase on erratic weather that created more dried vegetation.