Uploaded August 2026 | Updated September 2026, 2 weeks ago
California lawmakers have blocked Gov. Gavin Newsom from pursuing his plan to prevent insurance companies in California from recouping their losses from investor-owned utilities that cause a catastrophic wildfire, multiple sources confirmed to KCRA 3 on Friday morning. Four sources who spoke on the condition they remain anonymous said negotiations on this broke down late Thursday night during a closed-door meeting between the governor's staff and Democratic state lawmakers who are part of a working group on wildfire liability. The push to shift some of those wildfire liability costs onto insurers was part of a broader plan the governor has been pushing to limit who and how much the state's three investor-owned utilities pay when they cause a catastrophic wildfire. The governor wanted to end what's known as subrogation, a process in which insurance companies recoup losses from utilities after the companies pay wildfire claims for damaged or destroyed property.
KCRA 3 is your home for California breaking news and weather. For your latest California news and weather visit: kcra.com
For licensing inquiries: kcra.com/licensing
California lawmakers have blocked Gov. Gavin Newsom from pursuing his plan to prevent insurance companies in California from recouping their losses from investor-owned utilities that cause a catastrophic wildfire, multiple sources confirmed to KCRA 3 on Friday morning. Four sources who spoke on the condition they remain anonymous said negotiations on this broke down late Thursday night during a closed-door meeting between the governor's staff and Democratic state lawmakers who are part of a working group on wildfire liability. The push to shift some of those wildfire liability costs onto insurers was part of a broader plan the governor has been pushing to limit who and how much the state's three investor-owned utilities pay when they cause a catastrophic wildfire. The governor wanted to end what's known as subrogation, a process in which insurance companies recoup losses from utilities after the companies pay wildfire claims for damaged or destroyed property.
KCRA 3 is your home for California breaking news and weather. For your latest California news and weather visit: kcra.com
For licensing inquiries: kcra.com/licensing
