Politics
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.
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.”
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.
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.”
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.
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.
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.”
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.
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.”
Chen said she was not convinced. “You have the fox guarding the hen house,” she said.
Politics
Commentary: On Skid Row, it’s been decades of frustration. Will the next mayor have a plan?
On my way through Skid Row to meet up with Estela Lopez, things looked pretty much as they did when I spent time there more than 20 years ago and first heard the promises that things would be better soon.
Tents lined some of the sidewalks, making them unpassable. Some people wore the damage of physical or mental disease, addiction, poverty, or all of the above. Outreach workers with ID lanyards strode through the trash-strewn landscape like lifeguards working against endless tides of fresh emergencies.
When I arrived at Lopez’s office in the 700 block of Crocker Street, where she runs a business improvement district on behalf of 600 or so beleaguered merchants, she had just completed a tour of the neighborhood with John McKinney, a candidate for city attorney.
She held a note card in her hand and shared some numbers, telling McKinney that by her latest count, 131 of the 702 streetlights in the district were out, 27 children were living on Skid Row, and 72 RVs were parked in the area.
“I came out here because I think this symbolizes the greatest failure in government,” McKinney said. “I think it’s the result of bad law and bad policy. I think it’s the result of a lack of leadership and indifference to the way people are living out here. To me, it’s completely untenable.”
But will anything ever change?
It’s a question two people in particular need to address, and I’ll get to that in a minute.
A lot of people I trust and admire work tirelessly to make a difference on Skid Row, and they’re always eager to share the success stories of those who move through and move on. (I’ve got a column on that coming up soon.)
The long-standing problem is that Skid Row is both a social service center and a mecca of drugs and other vices, with traps on every block. And so it’s a neighborhood at war with itself, with some viewing Skid Row as one of the largest recovery centers in the country while others see a snapshot of social collapse.
Estela Lopez has reached out to me several times over the years. About illegal dumping. Typhus. Calls to City Hall that don’t get answered. About the relentless plague of fires, overdoses and assaults.
“Can you imagine, in 24 years, how many people I’ve seen dead on these streets?” Lopez asked me near her office last week.
Estela Lopez runs a business improvement district on behalf of 600 or so beleaguered merchants.
(Genaro Molina / Los Angeles Times)
When the local post office closed recently in part because of security issues, Lopez told The Times’ Melissa Gomez that “we have reached a point in this city where we are unable to address criminal activity. … It’s surrender.”
We walked to the corner of 8th Street, where paramedics had just pulled away from a medical emergency. Cars and pedestrians stopped at tents for brief transactions, leaving little doubt as to the nature of the business being conducted.
We passed a caged dog and saw a puppy on a short leash being loaded into a vehicle. There’s a lot of talk about dogs being bred and sold, and Lopez said she’s seen evidence of animals being mistreated.
On 7th Street we passed the charred residue of a recent fire. A half block east, four men were slumped on the sidewalk, hitting pipes. Lopez gets calls from exasperated merchants dealing with vandalism and with people blocking their storefronts.
“I’ve never seen so many people overdose right here,” said Sergio Moreno, who runs a check-cashing business and said his family has been in business going back to the ‘70s. He said he’s seen paramedics use naloxone to revive opioid users, only to see the same people go down again just days later.
“How can you run a business?” asked Moreno, who chairs the board of the business improvement district Lopez runs. “This business is our life. This is how we got through school, this is how we put our kids through school.”
And yet despite paying city taxes and BID fees, Moreno said, problems persist and his customers fear for their safety.
Dr. Susan Partovi, a street medic for 22 years, has been advocating for more proactive intervention for those in obvious distress. Partovi told me she recently saw a man rise from a gutter, pull down his pants and defecate in front of her. She called to get help for him but said neither paramedics nor police determined him to be gravely disabled.
Lopez walks past residents of Skid Row last week. By her latest count, 131 of the 702 streetlights in the district were out, 27 children were living on Skid Row, and 72 RVs were parked in the area.
(Genaro Molina / Los Angeles Times)
“We have become complacent with having people lying in the gutter, having diarrhea, speaking nonsensically and putting their lives at risk,” said Partovi, whom I once accompanied as she administered long-acting anti-psychotic injections, arguing that people need clear heads to make better choices.
One sore point for Lopez is the Skid Row Care Campus in the 400 block of Crocker Street, which opened a little more than a year ago and offers all sorts of social services, meds that reduce drug cravings, and supplies that allow for safe use of drugs.
Lopez said she understands the theory of harm reduction: Engage people with a goal of getting them into treatment and back on track. But she wonders how successful such programs are, and argues that they become magnets for lawlessness.
As we talked, a young man approached and told Lopez he’d seen her airing her grievances on TV news.
“I’m wondering, what would be your solution?” he asked.
“I would hope that people could return to life in sobriety,” Lopez responded.
The man said he is “trying to elevate” himself, but that he’d been on a waiting list for housing for six months.
Lopez is tired of being on a waiting list, too.
“If something is working down here,” she told me, “you can’t prove it by me.”
Progress is undeniable, said Sieglinde von Deffner, a social worker and Skid Row coordinator for the Los Angeles County Department of Homeless Services and Housing. But given the “highly vulnerable” nature of the population, “the need is colossal,” she said.
A man stands among his belongings along 7th Street in Skid Row in downtown Los Angeles.
(Genaro Molina / Los Angeles Times)
“I have not yet met someone here who doesn’t want housing of some kind. We just don’t have enough affordable housing for everyone,” Von Deffner said, and long-term homelessness makes people harder to reach. “Now, if we could just stop the inflow.”
Dennis Culhane, a University of Pennsylvania professor who researches homelessness and served as an L.A. County consultant, said there are other ways to get people indoors than investing billions of dollars in new housing that takes years to build. Culhane said single adults who are not veterans, including the elderly and disabled, constitute a majority of the homeless population. But assistance is scarce.
“It’s like you have a famine, and you’ve only got food for 15% of the people,” Culhane said.
Rapid rehousing is critical for the newly homeless, he said. But it can take two years for them to qualify for Social Security disability, and once they do, the $1,000 a month “is completely deficient in the face of rising rents.”
Culhane recommends faster approval of SSI benefits and supplementing that income with additional sources of rental assistance. He believes there are enough vacancies at the low end of the housing market to make a sizable dent in homelessness without new construction.
Judy Mauricio, 65, who has been homeless for nine years, rests inside her tent next to her walker. She says her drug addiction has kept her on the street. She receives state disability funds and says she has cancer.
(Genaro Molina / Los Angeles Times)
As campaign season warms up, I’d like to know if Mayor Karen Bass and her challenger, Councilmember Nithya Raman, agree.
The mayor of L.A. is limited by a power split with the City Council, and the county oversees most addiction and mental health services. But Skid Row sits just a few blocks from the seat of city authority, and nobody has more power or responsibility to address the decades-long human catastrophe on Skid Row than the mayor.
Estela Lopez and the merchants deserve better. The people on the street deserve better. Thousands of housed residents deserve better.
Does Bass have a plan other than what’s currently in place? Does Raman have a better one?
If so, I’d like to hear the details, and I’m available.
steve.lopez@latimes.com
Politics
EXCLUSIVE: FBI adds alleged COVID fraudster accused of taking $5M from kids’ meal program to Most Wanted list
FBI makes first arrest from its ‘most wanted fraudsters’ list
FBI Director Kash Patel announces the first arrest on the “Most Wanted Fraudsters” list. Said Ereg, a Minneapolis man, is accused of stealing over $4.2 million from a federal child nutrition program during the COVID-19 pandemic. Minnesota Senate candidate Michele Tafoya emphasizes the need for accountability for fraudulent activities.
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EXCLUSIVE: The FBI is adding Fahad Mohamed Nur to its Most Wanted Fraudsters List, accusing the Minnesota businessman of allegedly stealing more than $5 million that was intended to feed children during the COVID-19 pandemic.
Nur has been on the run since 2022 and is wanted for his alleged role in a fraud scheme that exploited Minnesota’s Federal Child Nutrition Program during the COVID-19 pandemic, according to the FBI. The bureau alleges he owned a vendor and purported food supplier that received more than $5 million in fraudulent program funds by submitting fake invoices before laundering the proceeds.
The Bureau believes Nur has ties to Somalia and may currently be living there.
The FBI is offering a reward of up to $150,000 for information leading to Nur’s arrest and conviction.
OWNER OF DAYCARE IN VIRAL NICK SHIRLEY VIDEO CHARGED IN $4.6M DAYCARE FRAUD SCHEME, PROSECUTORS SAY
Fahad Mohamed Nur has been on the run since 2022 and may be in Somalia, according to the FBI. (Federal Bureau of Investigation)
Nur is the latest addition to the FBI’s Most Wanted Fraudsters List, which officials say has already resulted in the arrests of two fugitives within weeks of its launch.
“Under President Trump’s and Vice President Vance’s leadership with the White House Task Force to Eliminate Fraud, the FBI’s historic ‘Most Wanted Fraudsters list’ has already seen tremendous success – with two subjects brought to justice in a matter of weeks, apprehended out of Somalia and the Philippines,” FBI Director Kash Patel said in a statement to Fox News Digital.
Patel said the early arrests demonstrate that the FBI is aggressively pursuing fugitives accused of stealing from American taxpayers.
FBI ADDS 2 FUGITIVES TO ‘MOST WANTED FRAUDSTERS’ LIST AMID HISTORIC $6.5B HEALTHCARE TAKEDOWN: PATEL
FBI Director Kash Patel conducts a news conference at the Department of Justice on Thursday, December 4, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
“Our newest subject – Fahad Mohamed Nur – has been on the run since 2022 for allegedly stealing over $5 million from a child nutrition program in Minnesota.”
Patel added: “Collectively, the Task Force has already uncovered more than $13 billion in fraud, and the rapid success of the Most Wanted Fraudsters List should show all Americans that this FBI will [be] at the forefront pursuing the worst of the worst who stole from hardworking American taxpayers.”
DR OZ WARNS MEDICARE SCAMMERS ARE STEALING BILLIONS — AND YOUR PERSONAL INFORMATION COULD BE NEXT
Federal agents enter an office building as a search warrant is executed at Ultimate Home Health Services over potential Medicaid fraud, on December 18, 2025 in Bloomington, Minnesota, United States. (Christopher Juhn/Anadolu via Getty Images)
Federal officials say the investigation is part of a broader government effort targeting pandemic-era fraud.
“The Department’s robust partnership with the FBI and the White House Task Force to Eliminate Fraud has already delivered historic results. That partnership grows even stronger today with the addition of this latest subject to the Most Wanted Fraudsters list,” said Acting Attorney General Todd Blanche. “President Trump has made it clear: Fraudsters no longer have a safe haven in America. Law enforcement will continue to use every tool at its disposal to bring those who steal from American taxpayers to justice.”
The White House Task Force to Eliminate Fraud, led by Vice President JD Vance, has already uncovered more than $13 billion in fraud, according to the FBI.
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Anyone with information about Nur’s whereabouts is urged to contact the FBI at 1-800-CALL-FBI, their local FBI office, the nearest U.S. Embassy or Consulate, or submit a tip online at tips.fbi.gov.
With the 2026-27 season premiere of “60 Minutes” just two months away, CBS News leadership is getting closer to deciding who will fill the recent departures of longtime correspondents Scott Pelley, Sharon Alfonsi, Cecilia Vega and Anderson Cooper.
Seth Doane, a longtime correspondent based in Italy who is often seen on “CBS Sunday Morning,” is under consideration, along with chief investigative correspondent Jim Axelrod, who currently has a lead role in the “Eye On America” series featured on the “CBS Evening News with Tony Dokoupil.”
Sir Trevor Phillips, a British journalist and former politician who recently joined CBS News as senior global affairs correspondent, is expected to have a role on the program, according to people briefed on the plan. Phillips had a long career in the U.K., producing and writing documentaries and most recently hosted the Sky News program “Sunday Morning with Trevor Phillips.”
Phillips received a knighthood in 2022 for his service to equality and human rights for the U.K. But he also generated controversy over his career for comments about the British Muslim community, which led to a yearlong suspension from the Labour Party in 2020.
A CBS News representative declined comment beyond saying the division is looking at a number of internal and external candidates.
Dokoupil is expected to deliver four “60 Minutes” pieces a season. Major Garrett, the network’s chief Washington correspondent, will also have a contributor role.
Matt Gutman, hired from ABC News last year as national correspondent, is under strong consideration. He is being put in front of test audiences, according to several people at the network.
Holly Williams, a foreign correspondent working out of Istanbul for CBS News since 2012, and Mariana van Zeller, a journalist for National Geographic Channel, are both said to remain in contention.
The newcomers will join Bill Whitaker, Leslie Stahl, Jon Wertheim and Norah O’Donnell, who are all returning as correspondents. O’Donnell will also continue in her role as senior correspondent for the network, occasionally anchoring specials.
The rebuild of the talent line-up comes after the upheaval at the program that has occurred since Bari Weiss joined CBS News as edtior in chief in October.
Longtime correspondent Scott Pelley was fired last month after confronting management about the May 28 dismissal of his colleagues Alfonsi and Vega along with the program’s executive producer Tanya Simon and her second-in-command Draggan Mihailovich.
In February, Cooper decided not to sign a new deal as a “60 Minutes” contributor, as the CNN anchor cited a desire to spend more time with his family. But Cooper has reportedly told colleagues that he does not want to work for Weiss.
The internal disruption at “60 Minutes” followed a highly successful season. In its 57th season, “60 Minutes” was the most watched news program on television with an average of 9.1 million viewers a week according to Nielsen data. The program bucked the overall decline in traditional TV viewing by growing 9 percent over the previous season.
After the dismissal of his “60 Minutes” colleagues, Pelley accused Weiss of trying to “murder” the program and claimed she was putting “her thumb on the scale” for more favorable coverage of the Trump administration. He was fired with cause after confronting management at a June 1 meeting.
Weiss came to CBS when parent company Paramount acquired her digital web site The Free Press, known for its criticism of progressive policies and its strong support of Israel.
Weiss was hired by Paramount Chief Executive David Ellison with a mandate to move the news division to the political center. The pronouncement has created the perception that CBS News is looking to placate the Trump administration as Paramount sought regulatory approval for its $111 billion acquisition of Warner Bros. Discovery, which will also give the company ownership of CNN.
The noise surrounding Weiss has hurt CBS News despite strong reporting that is often far from being pro-MAGA. This past weekend’s “CBS Sunday Morning” featured a segment from national security correspondent David Martin about the Department of Defense interfering with the editorial independence of Stars & Stripes, the military newspaper.
Trump complained vehemently about his last interview with O’Donnell on “60 Minutes,” — conducted the day after a gunman tried to enter the White House Correspondents Assn. dinner in Washington on April 25.
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