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Top executives of California’s two biggest utilities warned they would take action to protect their shareholders if Sacramento lawmakers fail to pass legislation limiting their companies’ liabilities for wildfires sparked by their equipment.

“If the legislature does not act, or if they act and don’t actually solve the problem, then we’re going to have to take action,” said Patti Poppe, chief executive of Pacific Gas & Electric, on a July 23 call with Wall Street analysts.

Poppe did not specify what her company would do, but made it clear any action would protect shareholders’ money. Previously, she told Wall Street analysts that if lawmakers failed to pass legislation to protect the utilities, PG&E would use its cash to buy back the company’s shares, according to a report by the bank Jeffries.

That could raise the company’s stock price and benefit shareholders, while reducing money available for the utility’s California programs.

The comments from Poppe and Pedro Pizarro, chief executive of Edison International, came just before the state Legislature returned from summer break Monday to begin the last four weeks of its session.

Gov. Gavin Newsom and legislators have been working behind closed doors to address the state’s escalating cost of wildfires, including those caused by the utilities, The Times reported last month. The big electric companies have told their investors they are talking to Newsom and lawmakers about a bill package that would protect shareholders from paying for utility-sparked fires.

On Tuesday, government fire officials released their investigation into last year’s devastating Eaton fire, blaming Edison’s century-old transmission line, which the utility kept in place even though it had not carried power since 1971.

Last week, Edison’s Pizarro echoed some of Poppe’s statements. He told Wall Street analysts on a conference call that he too was prepared to make financial changes if the legislature does not pass a comprehensive bill that cuts the utilities’ financial wildfire risk before the legislative session ends Aug. 31.

Any legislation that passes without a protective framework for utilities, Pizarro said, would “influence how we prioritize and deploy future capital.”

Pizarro declined analysts’ requests to say where the company would cut back, other than saying it would continue spending aimed at keeping its grid safe and reliable.

“We’re going to evaluate the totality of the package that comes to us and figure out our response that goes along with it,” Pizarro said.

Pizarro also told analysts that without legislation supporting the utilities, Edison’s credit rating could be downgraded. If that happens, he said, it could raise bills for electric customers since the utility may have to pay a higher interest rate for new borrowings.

“That could be a significant cost impact through the cost of debt that gets passed through to SCE customers if we don’t have a framework in the next four weeks that is credit supportive for our utility,” Pizarro told the analysts.

Newsom and lawmakers are drawing up legislation based on recommendations in an April study that the governor ordered last year.

The final report didn’t focus on utilities’ responsibility for sparking at least seven of the 20 most destructive wildfires in state history. It suggested ways to reduce the cost of wildfire liabilities, including by capping fees of attorneys representing victims and reducing payments to survivors for non-economic damages like pain and suffering.

The report also suggested that utilities should no longer reimburse property insurers for damages of fires sparked by electrical equipment. Insurers say this would increase premiums for homeowners.

Edison is now facing thousands of lawsuits from the victims of the Eaton fire, which roared through Altadena, destroying more than 9,000 homes and other structures and killing 19 people. The lawsuits claim it was negligent for the fire, which Edison denies.

The utility created a program to pay for victims’ damages if they agree to give up their right to sue.

Edison has so far paid more than $1 billion to victims. Experts say the fire’s costs could exceed the $21-billion state wildfire fund that Newsom and lawmakers created in 2019 to protect Edison, PG&E and San Diego Gas & Electric.

If that happens, Edison customers must pay for the rest under legislation that Newsom and lawmakers introduced in the final days of last year’s legislative session.

Because of utility protections in legislation that Newsom and lawmakers passed in 2019 and last year, Edison has said it expects its shareholders to pay little for the Eaton fire. The utility says it believes it will be reimbursed for its damage payments to victims by the state wildfire fund and through customer bills, according to the company’s financial disclosures.

A coalition of wildfire survivors, consumer advocates and other groups wrote a letter to Newsom last month, asking him for legislation that keeps utilities accountable for the fires they cause.

The coalition pointed out that despite billions of dollars in damages from 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’s board also rewarded Edison executives with higher salaries and bonuses. Pizarro received $16.6 million in cash, stock and other compensation, up 20% from 2024.

“For-profit companies that repeatedly cause catastrophic harm must be held accountable, not protected and enriched,” wrote Joy Chen, executive director of Every Fire Survivors Network, who is leading the coalition, in the letter to Newsom.

The letter warned that without reform of current state laws protecting utilities, disasters like the Eaton fire could happen again.

“Altadena is not the first community to endure this cycle, and it will not be the last,” the letter said.

Over the past year, it may have appeared that the pro-Palestine protest movement in the United States has lost momentum in the face of smears, crackdowns, indifference and fatigue.

But a string of electoral wins by critics of Israeli abuses appears to indicate that activism’s success can only be measured in the long term.

In New York, Darializa Avila Chevalier, an activist who participated in the pro-Palestine protests at Columbia University, won a Democratic congressional primary against a five-term incumbent.

“It’s just so satisfying to feel like the tide is finally turning,” said Maryam Alwan, who participated in the Columbia protest in 2024.

“Public opinion has shifted to a point where it’s unavoidable and undeniable, and I think we’re finally starting to see the ripple effects of movements like the encampment that happened two years ago.”

Avila Chevalier’s win was one of several victories for pro-Palestine candidates in New York last week.

Last year, Zohran Mamdani was elected mayor of New York City, in part thanks to the efforts of young pro-Palestine activists who powered his campaign.

In Colorado on Tuesday, Melat Kiros, who was fired from her law firm in 2023 for a letter defending Palestinian rights supporters from accusations of anti-Semitism, ousted a House member who had been in Congress for nearly 30 years.

Candidates backed by supporters of Palestinian rights also won key races in Pennsylvania and New Jersey.

Columbia case

Avila Chevalier’s victory especially stands out in the context of the long-term impact of the student protests.

The democratic socialist nominee, who is likely to cruise to victory in a safe Democratic district in November, will represent large parts of Columbia University’s campus, where it all started.

Witnessing horrific atrocities in Gaza that were partly funded by their own government, students at Columbia set up the first encampment in support of Palestinians, kick-starting a national movement.

Students nationwide then turned their campuses into a front line for political activism against Israel’s genocidal war on Palestinians.

Dozens of encampments sprang up on campuses across the country in 2024 and chants of “free Palestine” rang out in schools from Seattle to Miami.

The students demanded an end to their own schools’ complicity in Israel’s abuses. They called for divestment from Israeli companies and weapons manufacturers.

A security crackdown soon ensued, leading to the arrest of hundreds of students and the removal of encampments.

Avila Chevalier herself was arrested in 2024 as an alumna taking part in the protests.

Many students faced academic disciplinary action and others were charged with alleged crimes related to the protests as politicians from both major parties portrayed the movement as anti-Semitic.

Then, Donald Trump returned to the White House in 2025 and went after student activists who were not US citizens, pushing to deport them.

With the encampments removed, the protests getting quieter and the activists going on the defensive to preserve their own personal reputations, safety and freedom, it appeared that the pro-Israel camp successfully suffocated the student movement.

‘New wave of hope’

But the story is not over yet, activists say, and the recent elections show it.

“There’s no words to describe the joy and satisfaction that comes from seeing Darializa, a former leader and organiser of the encampment, represent the school that arrested her,” Alwan said.

She added that while students may not have succeeded in securing divestment despite rallying and suffering personal costs, change is proving to be a “gradual process”, and public opinion is now more aligned with the protesters.

“We’re experiencing a new wave of hope,” Alwan told Al Jazeera.

Cameron Jones, who participated in the protests at Columbia, said Avila Chevalier was always supportive of younger activists and unafraid to speak up for Palestinian rights, even when it wasn’t popular.

“It’s really inspiring to see how, even though we have faced such immense repression and have been organising in such a hostile environment, the power of the people is still able to overcome all the barriers that are being set by the federal government, Columbia, the media,” Jones said of Avila Chevalier’s win.

The Columbia protests were part of Avila Chevalier’s political identity as she launched her campaign last year.

One of her criticisms of her now-defeated opponent, Congressman Adriano Espaillat, is that he did not adequately support Columbia activist Mahmoud Khalil as he was targeted for deportation by the Trump administration.

Heba Gowayed, a sociology professor at the City University of New York (CUNY), said the recent electoral wins for pro-Palestine candidates would not have been possible without the student protests of 2024.

“When we think about social movements, we think about them as bursts of action, as temporally limited things,” Gowayed told Al Jazeera.

“And when the students are dispersed and the students are expelled and the university doesn’t divest, we see that as the loss of a movement.”

She added that there have been many articles declaring the defeat of student protests and claiming they have petered out and questioning the lack of campus activism in the Trump era after the crackdown.

“But here we have Darializa’s win, Mamdani’s win and the win of the entire socialist slate,” she said. “This does not happen if those students don’t encamp; it just doesn’t happen.”