Close Menu
Invest Insider News
    Facebook X (Twitter) Instagram
    Tuesday, February 3
    Facebook X (Twitter) Instagram Pinterest Vimeo
    Invest Insider News
    • Home
    • Bitcoin
    • Commodities
    • Finance
    • Investing
    • Property
    • Stock Market
    • Utilities
    Invest Insider News
    Home»Utilities»Arizona Legislature advances bill to protect utilities from wildfire liability
    Utilities

    Arizona Legislature advances bill to protect utilities from wildfire liability

    April 22, 20255 Mins Read


    PHOENIX — A deal has been reached over a measure that initially gave sweeping and potentially unconstitutional liability protections to the state’s electric utilities if their equipment sparked a wildfire.

    The agreement eliminates major opposition from insurance companies and trial lawyers who fought the proposal being pushed by Arizona Public Service Co., Tucson Electric Power and other utilities. While giving utilities new protection, it still allows some lawsuits against them if their equipment sparks a major blaze.

    The Senate gave initial approval to changes negotiated between lawmakers, utilities, opponents and the governor’s office on Tuesday. It now needs a formal vote before returning the House, which OK’d a more robust liability shield for power companies in February.

    The deal ensures utilities get some new cover from lawsuits while still allowing people and businesses affected by wildfires to sue if utilities don’t abide by their own wildfire plans. It still has opposition from lawmakers, with two Democrats questioning it during debate, although they praised the work done to amend the measure.

    The amendments to House Bill 2201, authored by Sens. J.D. Mesnard and Brian Fernandez, remove many liability protections remaining in the bill after earlier changes pushed by Mesnard, R-Chandler, stripped it of the most contentious and legally dubious provisions sought by utilities. They also restore the ability of people to win punitive damage awards from utilities.

    Those changes also ensure the newly mandated wildfire migration plans utilities write actually do something and are reviewed and approved by experts at the state Department of Forestry and Fire Protection. Earlier provisions had the Arizona Corporation Commission reviewing plans for regulated utilities and the boards of public power entities like Salt River Project approving their own plans,

    If utilities follow the new plans they will be assured they can’t be sued for failing to take steps needed to limit the risk that their equipment sparks a wildfire. While far from the sweeping liability shield originally sought by utilities, it’s still a major win for them if it is adopted.

    “They’re still getting what they basically were looking for — a way that if they come up with a plan and they follow the plan that they don’t have to worry about that excess liability,” said Fernandez, D-Yuma. “And that’s what this is all about.”

    APS and the other utilities faced opposition from trial lawyers and national insurers, groups that normally are at odds but united to oppose the initial proposal.

    For insurers, the sweeping liability shield in the original proposal would have barred them from recovering money from at-fault utilities they had to pay to homeowners or businesses they cover whose properties were damaged or destroyed by a fire. Trial lawyers were against it because it originally made it virtually impossible to sue a utility for their clients.

    Lobbyists for both groups told Capitol Media Services Tuesday they no longer oppose it.

    “It went from one of the worst bills in the country to one of the better bills in the country,” said Marc Osborn, a lobbyist who represents Farmers, Geico, Nationwide and Allstate at the Capitol.

    Sen. Lauren Kuby, D-Tempe, praised the work Fernandez and Mesnard did to develop a deal but still opposed the measure.

    “Whereas it was a terrible bill before, its simply now a bad bill as far as public policy because it amounts to a huge gift to the utilities,’’ Kuby said. “It allows them to be negligent but not liable as long as they have a plan.’’

    Utilities in California, Oregon and Colorado have faced massive lawsuits after their equipment was found or suspected to be the cause of forest fires that in some cases consumed whole communities. Pacific Gas & Electric Co. in California was forced to seek bankruptcy protection a year after its poorly maintained equipment sparked a 2018 fire that destroyed the northern California town of Paradise and killed 85 people.

    That’s what APS and the other utilities fear — a massive wildfire that bankrupts the company.

    APS, TEP and other utilities will still be subject to lawsuits if they fail to comply with new wildfire mitigation plans they’ll need to create. But if they do follow the plans, they can’t be sued for failing to follow “best practices.”
    Gone from the initial bill that passed by the House in February are the far-reaching bans on punitive and other damages initially sought by utilities.

    Mesnard said during floor debate Tuesday that utilities might be forced to take drastic action like shutting off power prematurely during high wind events if they didn’t get the new liability protections.

    That could leave lots of people without power just because the utility is trying to protect itself from a potential lawsuit. Or, he said, the utility could decide to spend “a boatload of money” to upgrade equipment to avoid a fire and subsequent lawsuit — money ultimately paid by their customers.

    “So that was the genesis behind the bill, is we don’t want to be facing that kind of crappy choice,” Mesnard said.

    Mesnard acknowledged the initial version of the bill crafted by APS was far too generous to the utilities, a fact that led him and others to drastically amend it.

    “But it really comes down to the fundamental question: If they fulfill a plan, if they follow the rules and everyone knows in advance what the rules are going to be, should we give them a little bit of grace?” Mesnard asked. “Because otherwise the cost will ultimately be paid by the ratepayer.”





    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleBank of Africa rejoint l’Alliance Africaine pour le Capital Naturel
    Next Article World’s biggest small-commodities market unfazed by US tariffs

    Related Posts

    Utilities

    United Utilities say fault at treatment works causing supply issues in Preston – Blog Preston

    February 1, 2026
    Utilities

    United Utilities CEO paid over £1.25 million as bills rise

    January 31, 2026
    Utilities

    Utilities Up After NextEra Earnings — Utilities Roundup

    January 27, 2026
    Leave A Reply Cancel Reply

    Top Posts

    How is the UK Commercial Property Market Performing?

    December 31, 2000

    How much are they in different states across the US?

    December 31, 2000

    A Guide To Becoming A Property Developer

    December 31, 2000
    Stay In Touch
    • Facebook
    • YouTube
    • TikTok
    • WhatsApp
    • Twitter
    • Instagram
    Latest Reviews
    Commodities

    Davis Commodities Accelerates ESG Expansion Plan, Targets $220M Revenue Growth in $500B Sustainable Agriculture Market

    July 1, 2025
    Stock Market

    Rocket Lab’s Stock Faces a Crucial Test Amid Launch Success

    December 7, 2025
    Bitcoin

    Bitcoin Price Dumps To $108,000, Trump Puts Tariffs On China

    October 10, 2025
    What's Hot

    les absents du 1er jour de Donald Trump à la Maison-Blanche

    January 21, 2025

    Analyses et prévisions relatives aux crypto-monnaies

    June 29, 2025

    London Stocks Dip Despite Weekly Gains On Rate Cut Hopes

    October 18, 2024
    Most Popular

    Stock Market Outlook: Warren Buffett Valuation Signal Flashes a Warning

    July 20, 2024

    Finance Leaders Debunk Outdated Career Myths

    November 7, 2025

    Trader Outlines Path Forward for Altcoin That’s Up Over 800% in a Week, Sets Targets for Bitcoin and Ethereum

    October 19, 2024
    Editor's Picks

    China’s property market faces continued decline with investment down 10.1% in 2024

    October 30, 2024

    BlueScope Steel Studying Whether It Could Buy, Not Build, More U.S. Growth — Commodities Roundup

    August 18, 2025

    Bitcoin Failure At $90K Driven By Reduced Fed Rate Cut Odds

    December 19, 2025
    Facebook X (Twitter) Instagram Pinterest Vimeo
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions
    © 2026 Invest Insider News

    Type above and press Enter to search. Press Esc to cancel.