New law does not limit utility liabilities for fire damages

Re “Newsom’s huge favor for Edison: It’s a state tradition” (Oct. 24): As the Edison International & Southern California Edison executive vice president for public policy and corporate affairs, I’d like to share context to your editorial, which mischaracterized Senate Bill 254 and omitted how securitization protects customers and supports the financial health of utilities.

With these provisions, utilities gain access to efficient financing for wildfire claims. SB 254 does not limit utility liabilities. Customers are responsible only for prudently incurred costs, determined by the California Public Utilities Commission after evaluating whether the utility operated reasonably.

If securitization bonds are issued, funds collected from customers to repay those bonds are refunded if the commission determines the utility acted imprudently and disallows cost recovery.Securitization costs less than traditional debt financing — delivering savings to customers. This framework maintains utility financial health along with strong customer protection.

We hope future coverage will reflect the full scope of SB 254.

— Caroline Choi, Los Angeles County