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The chair of the California Senate’s utilities committee said Tuesday that he was “deeply troubled” by electric company executives’ recent threats to take action to protect their shareholders if they don’t get legislation in Sacramento to limit their wildfire liabilities.

In a letter to Southern California Edison and Pacific Gas & Electric, Sen. Benjamin Allen (D-Santa Monica) wrote that he was considering calling the utility executives to an oversight hearing to have them explain their plans.

Allen sent the letter after the Times reported that the two companies’ top executives promised their investors in recent conference calls that they planned to respond if they don’t get legislation for which they have been lobbying. Gov. Gavin Newsom and lawmakers are working behind closed doors on a package of wildfire bills.

“While I understand that utility investors seek predictability for their invested dollars, and stable utilities are important to the state of California, we as legislators must balance the additional interests of wildfire victims and survivors, our residents’ ability to access affordable insurance, and the need to ensure affordable utility service,” Allen wrote.

“We are certainly not interested in being threatened as we seek a balanced path that is right for California,” he added.

In response to the letter, PG&E and Edison said Tuesday night that The Times had “mischaracterized” their executives’ comments to investors.

“PG&E’s objectives remain unchanged: safely and reliably serve our customers, ensure wildfire victims are compensated quickly and fairly, and protect customer affordability,” PG&E said in a statement.

Edison declined to comment further.

Besides chairing the Senate’s Energy, Utilities and Communications Committee, Allen also is running in November’s election to be the state’s next insurance commissioner.

Newsom and lawmakers already passed legislation that cut the state’s three biggest electric companies’ liabilities for wildfires. Edison’s shareholders, for example, may pay little of the billions of dollars of damage from last year’s devastating Eaton fire — which killed 19 people and left thousands of families in Altadena homeless — under current laws championed by Newsom to protect the utilities from bankruptcy.

The utilities say more needs to be done. Among the recommendations in a report ordered by Newsom is limiting the amounts that victims can receive for pain and suffering and capping the fees of attorneys who represent them.

The commissioned report also suggested that utilities should no longer reimburse property insurers for damage from fires sparked by electrical equipment. Although this would reduce utilities’ liability for fires, insurers say it would increase premiums for homeowners.

“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,” Patti Poppe, PG&E’s chief executive, said on a July 23 call with Wall Street analysts.

Poppe did not specify what her company would do, but made it clear that any action would protect shareholders’ money.

In earlier conversations with analysts, PG&E executives had “alluded to the possibility of opportunistic share repurchases should the legislative process fail to deliver a more durable wildfire liability framework,” according to a report by the bank Jeffries.

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

Last month, Pedro Pizarro, chief executive of Edison International, 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 to cut 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, but said the utility 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.

This month, state and county officials released their investigation into the Eaton fire, blaming the deadly inferno on Edison’s century-old transmission line that the company kept in place even though it hadn’t carried electricity since 1971.

Utilities have long known that idle lines could spark fires. In 2019, the Kincade fire in Sonoma County, which destroyed hundreds of homes, was ignited by an old, unused transmission line owned by PG&E.

At least seven of the 20 most destructive fires in California history have been sparked by the three biggest for-profit utilities.

SACRAMENTO — The state’s biggest energy utility has made the unusual move to attack candidate Tom Steyer in the California governor’s race.

State campaign filings show that Pacific Gas & Electric has plowed at least $13.5 million into efforts to oppose Steyer. Other major utilities in the state have also donated to another committee backing the anti-Steyer effort.

Steyer, a billionaire and former hedge fund founder who became a high-profile environmental advocate, accuses the big three California utility companies — PG&E, San Diego Gas & Electric Co. and Southern California Edison — of “raking in” record profits at the expense of their customers. He blames the utilities for high consumer bills and causing deadly wildfires with their faulty utility equipment.

Though other candidates in the race are also criticizing the utilities, Steyer is the most aggressive.

“Big energy companies really piss me off,” Steyer said in one of his own campaign ads earlier this year.

In another attack, Steyer called PG&E less of an electric company and more of a “sophisticated Sacramento lobbying and influence operation that also happens to sell electricity. California needs a governor who will stand up to these monopolies, hold them accountable, and break them up.”

Lynsey Paulo, a spokesperson for PG&E, declined to answer questions about the utility’s spending, referring The Times to the committee running anti-Steyer ads.

“Tom Steyer has spent over $200 million trying to buy the Governor’s office,” the committee said in a statement.

Steyer, a Democrat who is relying on his vast fortune in the race, is seeking to advance past the June 2 primary to the November general election. Recent polls put him behind Republican Steve Hilton, a former Fox News commentator, and onetime Health and Human Services Secretary Xavier Becerra.

The utility-funded advertisements against Steyer don’t mention his position on energy policies, focusing instead on his onetime hedge fund’s investments in coal and for-profit detention centers. One ad compares him to President Trump.

“When Steyer sells himself as a different kind of billionaire, tell him where to stick it,” a voiceover says.

Another advertisement from the anti-Steyer group California is Not for Sale highlights its support for Becerra. The California Assn. of Realtors and the California Building Industry Assn. are also supporting the group.

Steyer’s campaign last week embraced the spending from PG&E and others.

“When you’re opposed by the people responsible for devastating wildfires and outrageous rate hikes, you’re doing something right,” Steyer spokesperson Sepi Esfahlani said.

Steyer has used his criticism of the California utilities and the oil industry as a shield against attacks that he made billions of dollars from fossil fuels when he ran his hedge fund, and to elevate himself as an advocate for working-class Californians.

When Democratic rival Katie Porter ripped into Steyer at a recent debate for using his riches to support his gubernatorial campaign, Steyer pointed to the attacks by PG&E and others as evidence that he’ll take on Sacramento’s powerful special interests.

“There is one person that the corporations are going after, including Big Oil, who is spending millions of dollars to stop me,” Steyer responded during the April debate at Pomona College in Claremont.

“The electric monopolies, PG&E, millions of dollars to stop me, because I’m the person on this stage who’s the change agent,” he said. “I’m the person who’s going to drive down costs for the people of California by taking on the special interests.”

PG&E CEO Patti Poppe and Steyer lauded one another in social media posts after appearing together at various conferences last year, the California Post reported.

“Loved sitting down to talk the future of energy with Tom Steyer at the Galvanize Solutions Summit,” Poppe wrote on LinkedIn in December. Steyer co-founded Galvanize, an asset management firm.

The California Chamber of Commerce’s political action committee this year collected at least $2 million each from PG&E, Sempra — the parent company of SoCalGas and San Diego Gas & Electric — and Edison. The chamber’s committee in turn has donated $9.75 million toward the anti-Steyer committee.

John Myers, a representative for the Chamber of Commerce, said the committee’s leadership, not donors, make spending decisions.

California electric rates are the nation’s second highest after Hawaii, contributing to the state’s high cost of living — one of the biggest concerns of voters.

PG&E serves Northern and Central California, while Southern California Edison is available in Central, coastal and Southern California. San Diego Gas & Electric services Southern California.

The California Public Utilities Commission sets the rate of return that the companies can make. Steyer has argued that “perverse” structure allows utilities to disregard cheaper cost-effective solutions in favor of more expensive options, such as undergrounding power lines.

Despite Steyer’s talk of “breaking up” utilities, he doesn’t propose dismantling them. Instead, he vows to put reform-focused appointees on the regulatory agency and reduce utility rates. He also wants more battery storage for renewal energy, as well as additional rooftop and community solar.

The three utilities recently opposed a bill to require that wildfire safety spending by Southern California Edison, PG&E and San Diego Gas & Electric be audited by an independent accounting firm.

The bill by Assemblywoman Tasha Boerner, an Encinitas Democrat, stalled out earlier this month. It would have required the state’s regulatory agency to consider the audits’ findings before agreeing to raise customer rates to cover even more wildfire prevention spending.

Audits of the three companies’ wildfire spending from 2019 to 2020 found that $2.5 billion could not be accounted for.

Matt Abularach-Macias, political director of Environmental Voters, said the utilities probably consider Steyer as a threat to their business. The companies plan infrastructure projects five or 10 years ahead and don’t want disruptions, he said.

Environmental Voters has endorsed Steyer and former Orange County Rep. Katie Porter. The group’s educational arm received a $500,000 donation from a Steyer-backed entity in 2013.

Leah Stokes, associate professor of political science at UC Santa Barbara, called PG&E’s outlay in the governor’s race part of a “corrupt system.”

“These are monopoly companies, you can’t choose to buy from anybody else,” Stokes said. “They take your money, turn it into profits because they are poorly regulated, and then undermine political candidates who would actually hold them accountable.”

Stokes has publicly endorsed Steyer.

A spokesperson for Southern California Edison said the company funds its political contributions from “shareholder dollars.”

“No customer dollars, or any part of the rates paid by Southern California Edison customers, are used to support political candidates,” he said.

Times staff writer Melody Petersen contributed to this report.