California’s biggest utility in crisis mode as shares fall off a cliff and insurers smell blood

California’s biggest utility was rocked Monday after lawmakers dealt Gov. Gavin Newsom a blow over a sweeping wildfire liability overhaul.

PG&E Corp. shares plunged nearly 20% Monday morning after California Democrats gutted Newsom’s proposal, which sought to change who pays when utility equipment sparks catastrophic wildfires.

The plan would have blocked insurance companies from suing utilities to recover some of their wildfire losses — a move insurers fiercely opposed.

Lawmakers instead backed a much narrower compromise after opposition from insurance companies, hedge funds and trial lawyers.

The final measure includes provisions aimed at stopping utility CEOs from receiving bonuses after their companies ignite wildfires and getting money to fire survivors faster.

PG&E has faced liability over several major California wildfires in recent years, including the 2018 Camp Fire, 2019 Kincade Fire, 2020 Zogg Fire and 2021 Dixie Fire.

The California Post has reached out to PG&E for comment.

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