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Wildfire victims decry state law protecting utilities from cost of disasters they cause

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Wildfire victims decry state law protecting utilities from cost of disasters they cause

A year after the Eaton fire, survivors and the state’s electric utilities are clashing over whether state law should continue to protect the companies from the cost of disastrous wildfires they ignite.

Southern California Edison says that with the help of those state laws it expects to pay little or even none of the damage costs of the Eaton fire, which its equipment is suspected of sparking.

But in recent filings to state officials, fire victims and consumer advocates say the law has gone too far and made the utilities’ unaccountable for their mistakes, leading to even more fires.

“What do you think will happen if you constantly protect perpetrators of fires,” said Joy Chen, executive director of the Eaton Fire Survivors Network.

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At the same time, Edison and the state’s two other big for-profit electric companies are lobbying state officials for even more protection from the cost of future fires to reassure their investors.

If government investigators find Edison’s equipment ignited the Eaton fire, at least seven of the state’s 20 most destructive wildfires would have been caused by the three utilities’ equipment.

The debate over how far the state should go to protect the electric companies from the cost of utility-sparked wildfires is playing out in Sacramento at the California Earthquake Authority. The authority is managing a broad study, ordered by Gov. Gavin Newsom, aimed at determining how to better protect Californians from catastrophic wildfires.

Chen said she was concerned by a meeting this month that she and another survivor had been invited to by authority officials and consultants they had hired to work on the study.

She said a primary focus of the discussion was how to shield utilities and their shareholders from the damages of future fires, rather than on the costs to survivors and other Californians “living with the consequences of utility-caused fires.”

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Chen later sent authority officials an email pointing to a Times story that detailed how four of five top executives at Edison International were paid higher bonuses the year before the Eaton fire even as the number of fires sparked by the utility’s equipment soared.

“The predictable outcome of continuing to protect shareholders and executives from the consequences of their own negligence is not theoretical. It is observable. More catastrophic fires,” she wrote.

“The Eaton Fire was the predictable outcome of this moral hazard,” she added.

An authority spokesman said Chen and other wildfire victims’ perspectives were “invaluable” to officials as they complete the study that is due April 1.

He said the authority had made “no foregone conclusions” of what the report will say.

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Pedro Pizarro, chief executive of Edison International, told the Times last month that he disagreed strongly with claims that state law had gone too far in protecting utilities.

“The law keeps us very accountable,” Pizarro said. He added that the laws were needed to shield utilities from bankruptcy, which could drive electric bills higher.

In December, Edison and the two other utilities told authority officials in a filing that they and their shareholders shouldn’t have to pay any more into the state wildfire fund, which was created to pay for the damages of utility-caused fires.

So far, electric customers and utility shareholders have split the cost of the fund.

The companies said that making their shareholders contribute more to the fund “undermines investor confidence in California utilities.”

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They proposed that officials instead find a new way to help pay for catastrophic fires, possibly using state income taxes, which require the wealthy to pay a higher share.

“Instead of relying on an increase in utility bills to cover extreme catastrophic losses, something that disproportionately impacts lower-income Californians, this system could share costs more equitably across society,” the three companies wrote.

While the investigation into the cause of the Eaton fire has not yet been released, Edison has said a leading theory is that a century-old transmission line no longer in service was briefly re-energized and sparked the fire.

Edison last used that transmission line in Eaton Canyon more than fifty years ago. Utility executives said they kept it up because they believed it would be used in the future.

Utilities and state regulators have long known that old, unused lines posed fire risks. In 2019, investigators traced the Kincade fire in Sonoma County, which destroyed 374 homes and other structures, to a dormant transmission line owned by Pacific Gas & Electric.

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The electric companies’ legal protections from utility-sparked fires date back to 2019 when Gov. Newsom led an effort to pass a measure known as AB 1054.

Then, PG&E was in bankruptcy because of costs it faced from a series of wildfires, including the 2018 Camp fire. That blaze, caused by a decades-old transmission line, destroyed most of the town of Paradise and killed 85 people.

Under the 2019 law, a utility is automatically deemed to have acted prudently if its equipment starts a wildfire. Then, all fire damages, except for $1 billion dollars covered by customer-paid insurance, are covered by the state wildfire fund.

The law allows outside parties to provide evidence that the utility didn’t act prudently before the fire, but even in that event, the utility’s financial responsibility for damages is capped.

Edison has told its investors that it believes it acted prudently before the Eaton fire and will have the damage costs fully covered.

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The company says the maximum it may have to pay under the law if it is found to be imprudent is $4 billion. Damages for the Eaton fire have been estimated to be as high as $45 billion.

Pizarro said the possibility of Edison paying as much as $4 billion shows that state law is working to keep utilities accountable.

“If we were imprudent and we end up getting penalized by $4 billion for the Eaton fire, that’s going to be a very painful day for this company — not only the pain of being told that we were imprudent, but also the financial toll of a penalty of that size,” he said.

Chen’s group is not alone in urging the state to change the laws protecting utilities from wildfire costs.

William Abrams of the Utility Wildfire Survivor Coalition detailed in a filing how the present laws had been shaped by the utilities and “a small circle of well-resourced legal and financial actors.”

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AB 1054 had weakened safety regulations, he said, while leaving wildfire survivors across California “under-compensated and struggling to rebuild.”

He proposed that the companies be required to use shareholder money and suspend their dividends to pay for fire damages.

Carmen Balber, executive director of Consumer Watchdog, told state officials that Edison is expected to have damages of the Eaton fire covered despite questions of why it did not remove the “ghost line” in Eaton Canyon and failed to shut down its transmission lines, despite the high winds on the night of the fire.

“We recommend establishing a negligence standard,” Balber said, “for when utilities’ shareholders need to pay.”

Among the consultants the authority has hired to help write the study is Rand, the Santa Monica-based research group; and Aon, a consulting firm.

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Both Rand and Aon have been paid by Edison for other work. Most recently, Edison hired Rand to review some of the data and methods it used to determine how much to offer Eaton fire victims in its voluntary compensation program.

Chen said hiring Edison’s consultants to help prepare the study created a conflict of interest.

The authority spokesman said officials were confident that their “open and inclusive study process” will protect its integrity.

Aon did not return a request for comment.

“Our clients have no influence over our findings,” said Leah Polk, a Rand spokesperson. “We follow the evidence and maintain strict standards to ensure our work remains objective and unbiased.”

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Chen said she was not convinced. “You have the fox guarding the hen house,” she said.

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Iran fires missiles at US bases across Middle East after American strikes on nuclear, IRGC sites

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Iran fires missiles at US bases across Middle East after American strikes on nuclear, IRGC sites

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Iran launched missile and drone strikes targeting U.S. military facilities in multiple Middle Eastern countries Friday, retaliating after coordinated U.S.–Israeli strikes on Iranian military and nuclear-linked sites.

Explosions were reported in or near areas hosting American forces in Bahrain, Qatar, the United Arab Emirates, Kuwait and Jordan, according to regional officials and state media accounts. Several of those governments said their air defense systems intercepted incoming projectiles.

It remains unclear whether any U.S. service members were killed or injured, and the extent of potential damage to American facilities has not yet been confirmed. U.S. officials have not publicly released casualty figures or formal damage assessments.

Iran’s Islamic Revolutionary Guard Corps (IRGC) described the operation as a direct response to what Tehran called “aggression” against Iranian territory earlier in the day. Iranian officials claimed they targeted U.S. military infrastructure and command facilities.

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Explosions were reported in or near areas hosting American forces in Bahrain, pictured above. (Photo by Petty Officer 2nd Class Adelola Tinubu/U.S. Naval Forces Central Command/U.S. 5th Fleet )

The United States military earlier carried out strikes against what officials described as high-value Iranian targets, including IRGC facilities, naval assets and underground sites believed to be associated with Iran’s nuclear program. One U.S. official told Fox News that American forces had “suppressed” Iranian air defenses in the initial wave of strikes.

Tomahawk cruise missiles were used in the opening phase of the U.S. operation, according to a U.S. official. The campaign was described as a multi-geographic operation designed to overwhelm Iran’s defensive capabilities and could continue for multiple days. Officials also indicated the U.S. employed one-way attack drones in combat for the first time.

IF KHAMENEI FALLS, WHO TAKES IRAN? STRIKES WILL EXPOSE POWER VACUUM — AND THE IRGC’S GRIP

Smoke rises after reported Iranian missile attacks, following strikes by the United States and Israel against Iran, in Manama, Bahrain, Feb. 28, 2026. (Reuters)

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Iran’s retaliatory barrage targeted countries that host American forces, including Bahrain — home to the U.S. Navy’s Fifth Fleet — as well as Qatar’s Al Udeid Air Base and the UAE’s Al Dhafra Air Base. Authorities in those nations reported intercepting many of the incoming missiles. At least one civilian was killed in the UAE by falling debris, according to local authorities.

Iranian officials characterized their response as proportionate and warned of additional action if strikes continue. A senior U.S. official described the Iranian retaliation as “ineffective,” though independent assessments of the overall impact are still developing.

Smoke rises over the city after the Israeli army launched a second wave of airstrikes on Iran in Tehran on Feb. 28, 2026. (Fatemeh Bahrami/Anadolu via Getty Images)

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Regional governments condemned the strikes on their territory as violations of sovereignty, raising the risk that additional countries could become directly involved if escalation continues.

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The situation remains fluid, with military and diplomatic channels active across the region. Pentagon officials are expected to provide further updates as damage assessments and casualty reviews are completed.

Fox News’ Jennifer Griffin contributed to this report. 

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Iraq War flashbacks? Experts say Trump’s Iran buildup signals pressure campaign, not regime change
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Why Iran resists giving up its nuclear program, even as Trump threatens strikes

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Why Iran resists giving up its nuclear program, even as Trump threatens strikes

Embassy staffers and dependents evacuating, airlines suspending service, eyes in Iran warily turning skyward for signs of an attack.

The prospects of a showdown between the U.S. and Iran loom ever higher, as massive American naval and air power lies in wait off Iran’s shores and land borders.

Yet little of that urgency is felt in Iran’s government. Rather than quickly acquiescing to President Trump’s demands, Iranian diplomats persist in the kind of torturously slow diplomatic dance that marked previous discussions with the U.S., a pace that prompted Trump to declare on Friday that the Iranians were not negotiating in “good faith.”

But For Iran’s leadership, Iranian experts say, concessions of the sort Trump are asking for about nuclear power and the country’s role in the Middle East undermine the very ethos of the Islamic Republic and the decades-old project it has created.

“As an Islamic theocracy, Iran serves as a role model for the Islamic world. And as a role model, we cannot capitulate,” said Hamid Reza Taraghi, who heads international affairs for Iran’s Islamic Coalition Party, or Hezb-e Motalefeh Eslami.

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Besides, he added, “militarily we are strong enough to fight back and make any enemy regret attacking us.”

Even as another round of negotiations ended with no resolution this week, the U.S. has completed a buildup involving more than 150 aircraft into the region, along with roughly a third of all active U.S. ships.

Observers say those forces remain insufficient for anything beyond a short campaign of a few weeks or a high-intensity kinetic strike.

Iran would be sure to retaliate, perhaps against an aircraft carrier or the many U.S. military bases arrayed in the region. Though such an attack is unlikely to destroy its target, it could damage or at least disrupt operations, demonstrating that “American power is not untouchable,” said Hooshang Talé, a former Iranian parliamentarian.

Tehran could also mobilize paramilitary groups it cultivated in the region, including Iraqi militias and Yemen’s Houthis, Talé added. Other U.S. rivals, such as Russia and China, may seize the opportunity to launch their own campaigns elsewhere in the world while the U.S. remains preoccupied in the Middle East, he said.

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“From this perspective, Iran would not be acting entirely alone,” Tale said. “Indirect alignment among U.S. adversaries — even without a formal alliance — would create a cascading effect.”

We’re not exactly happy with the way they’re negotiating and, again, they cannot have nuclear weapons

— President Trump

The U.S. demands Iran give up all nuclear enrichment and relinquish existing stockpiles of enriched uranium so as to stop any path to developing a bomb. Iran has repeatedly stated it does not want to build a nuclear weapon and that nuclear enrichment would be for exclusively peaceful purposes.

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The Trump administration has also talked about curtailing Iran’s ballistic missile program and its support to proxy groups, such as Hezbollah, in the region, though those have not been consistent demands. Tehran insists the talks should be limited to the nuclear issue.

After indirect negotiations on Thursday, Oman’s Foreign Minister Badr al-Busaidi — the mediator for the talks in Geneva — lauded what he said was “significant progress.” Iranian Foreign Ministry spokesman Esmail Baghaei said there had been “constructive proposals.”

Trump, however, struck a frustrated tone when speaking to reporters on Friday.

“We’re not exactly happy with the way they’re negotiating and, again, they cannot have nuclear weapons,” he said.

Trump also downplayed concerns that an attack could escalate into a longer conflict.

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This frame grab from footage circulating on social media shows protesters dancing and cheering around a bonfire during an anti-government protest in Tehran, Iran, on Jan. 9.

(Uncredited / Associated Press)

“I guess you could say there’s always a risk. You know, when there’s war, there’s a risk in anything, both good and bad,” Trump said.

Three days earlier, in his State of the Union address Tuesday, said, “My preference is to solve this problem through diplomacy. But one thing is certain, I will never allow the world’s number one sponsor of terror, which they are by far, to have a nuclear weapon — can’t let that happen.”

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There are other signs an attack could be imminent.

On Friday, the U.S. Embassy in Israel allowed staff to leave the country if they wished. That followed an earlier move this week to evacuate dependents in the embassy in Lebanon. Other countries have followed suit, including the U.K, which pulled its embassy staff in Tehran. Meanwhile, several airlines have suspended service to Israel and Iran.

A U.S. military campaign would come at a sensitive time for Iran’s leadership.

The country’s armed forces are still recovering from the June war with Israel and the U.S, which left more than 1,200 people dead and more than 6,000 injured in Iran. In Israel, 28 people were killed and dozens injured.

Unrest in January — when security forces killed anywhere from 3,000 to 30,000 protesters (estimates range wildly) — means the government has no shortage of domestic enemies. Meanwhile, long-term sanctions have hobbled Iran’s economy and left most Iranians desperately poor.

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Despite those vulnerabilities, observers say the U.S. buildup is likely to make Iran dig in its heels, especially because it would not want to set the precedent of giving up positions at the barrel of a U.S. gun.

Other U.S. demands would constitute red lines. Its missile arsenal, for example, counts as its main counter to the U.S. and Israel, said Rose Kelanic, Director of the Middle East Program at the Defense Priorities think tank.

“Iran’s deterrence policy is defense by attrition. They act like a porcupine so the bear will drop them… The missiles are the quills,” she said, adding that the strategy means Iran cannot fully defend against the U.S., but could inflict pain.

At the same time, although mechanisms to monitor nuclear enrichment exist, reining in Tehran’s support for proxy groups would be a much harder matter to verify.

But the larger issue is that Iran doesn’t trust Trump to follow through on whatever the negotiations reach.

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After all, it was Trump who withdrew from an Obama-era deal designed to curb Iran’s nuclear ambitions, despite widespread consensus Iran was in compliance.

Trump and numerous other critics complained Iran was not constrained in its other “malign activities,” such as support for militant groups in the Middle East and development of ballistic missiles. The Trump administration embarked on a policy of “maximum pressure” hoping to bring Iran to its knees, but it was met with what Iran watchers called maximum resistance.

In June, he joined Israel in attacking Iran’s nuclear facilities, a move that didn’t result in the Islamic Republic returning to negotiations and accepting Trump’s terms. And he has waxed wistfully about regime change.

“Trump has worked very hard to make U.S. threats credible by amassing this huge military force offshore, and they’re extremely credible at this point,” Kelanic said.

“But he also has to make his assurances credible that if Iran agrees to U.S. demands, that the U.S. won’t attack Iran anyway.”

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Talé, the former parliamentarian, put it differently.

“If Iranian diplomats demonstrate flexibility, Trump will be more emboldened,” he said. “That’s why Iran, as a sovereign nation, must not capitulate to any foreign power, including America.”

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Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

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Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

new video loaded: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

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Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.

“Cause we don’t know when the video will be out. I don’t know when the transcript will be out. We’ve asked that they be out as quickly as possible.” “I don’t like seeing him deposed, but they certainly went after me a lot more than that.” “Republicans have now set a new precedent, which is to bring in presidents and former presidents to testify. So we’re once again going to make that call that we did yesterday. We are now asking and demanding that President Trump officially come in and testify in front of the Oversight Committee.” “Ranking Member Garcia asked President Clinton, quote, ‘Should President Trump be called to answer questions from this committee?’ And President Clinton said, that’s for you to decide. And the president went on to say that the President Trump has never said anything to me to make me think he was involved. “The way Chairman Comer described it, I don’t think is a complete, accurate description of what actually was said. So let’s release the full transcript.”

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Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.

By Jackeline Luna

February 27, 2026

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