California wildfires could raise residents’ utility bills


This recording was made using enhanced software.

Summary

Wildfire destruction

The Eaton fire burned more than 14,000 acres near Los Angeles in January, resulting in the deaths of 18 people and the destruction of over 9,000 structures.

Utility liability

Numerous lawsuits allege that the Eaton fire was caused by equipment from Southern California Edison, a utility company serving approximately 15 million people.

Utility bill impact

The wildfire cost could exhaust California’s $21 billion wildfire insurance fund. If depleted, officials may extend a non-bypassable surcharge on utility bills beyond its planned expiration in 2035.


Full story

The cost of the Eaton fire, which burned near Los Angeles in January, could be passed on to Californians. The fire burned more than 14,000 acres, killing 18 people and destroying more than 9,000 structures.

Eaton fire cause

Numerous lawsuits blame the Eaton fire on equipment from utility company Southern California Edison (SCE), which services approximately 15 million people. Early estimates on the cost of the Eaton fire, along with the Palisades fire, are between $35 billion and $45 billion, according to property analytics firm CoreLogic.

If the figures hold, that could wipe out California’s $21 billion wildfire insurance fund. The nest egg was established in 2019 to help compensate victims and shield utilities like SCE from financial collapse.

If the fund is depleted, officials could extend a monthly utility bill surcharge beyond its scheduled expiration in 2035. Known as a non-bypassable charge, the insurance fund surcharge currently adds about $3 to the average residential bill.

An LA Times report shows extending that fee by an additional 10 years could put customers on the hook for an additional $9 billion towards the fund.

As of now, the cause of the Eaton fire officially remains under investigation, and a final report could take more than a year. In April, lawyers blamed a decommissioned transmission tower for sparking the fire. A month later, SCE removed two towers for examination.

SCE’s parent company, Edison International, does have access to a billion-dollar self-insurance fund and does plan to use the wildfire fund if necessary. SCE generated $1.69 billion in revenue last year.

Preventing wildfires

In May, SCE released a wildfire mitigation plan, outlining how it plans to prevent future fires. The company expects a cost of $6.2 billion over three years to install hundreds of miles of covered conductor, additional support for aerial firefighting and more.

In recent months, SCE has said the company’s equipment may have been involved in starting the Eaton fire, and there has been no evidence to suggest another cause.

Wildfires burn LA

In January, the Palisades and Eaton fires began within days of each other. In total, 28 people died, more than 16,000 structures burned and over 37,000 acres were scorched.

Recovery efforts continue in Southern California after the fires displaced thousands of people.

Cole Lauterbach (Managing Editor), Lawrence Banton (Digital Producer), and Zachary Hill (Video Editor) contributed to this report.
Tags: , , , , ,

Why this story matters

The costs and causes of major wildfires near Los Angeles may lead to increased financial burdens for California residents, while raising questions about utility companies' responsibility and long-term strategies for wildfire prevention.

Wildfire costs

The financial damages from the Eaton and Palisades fires could surpass the state's wildfire insurance fund, affecting how recovery costs are distributed among Californians.

Utility company liability

Ongoing investigations and lawsuits allege that Southern California Edison equipment may have caused the wildfire, highlighting debates about corporate accountability for disaster-related damages.

Prevention and mitigation

Southern California Edison's plans for wildfire mitigation and infrastructure improvements underscore the ongoing need to invest in measures that reduce future wildfire risks.

Timeline

  • AT&T and Assurant Protection are teaming up with the Arbor Day Foundation to support reforestation efforts in California.
    Getty Images
    Business
    Apr 7

    Recycle your phone, replant a forest

    AT&T and Assurant Protection are teaming up with the Arbor Day Foundation to support reforestation efforts in California. For the month of April, customers who trade in a phone, tablet or device online or at AT&T stores will help plant a tree at the Placerville Nursery, the state’s only Forest Service nursery and one of…

  • State Farm fires VP for undercover video of him discussing Los Angeles wildfire rate hikes
    Getty Images
    Business
    Mar 13

    State Farm VP fired over comments in undercover video on wildfires, rate hikes

    State Farm Vice President Haden Kirkpatrick, who is no longer employed by the insurance company, made controversial remarks in an undercover video released by O’Keefe Media Group. The footage shows Kirkpatrick discussing rate hikes and the Los Angeles wildfires from January 2025, revealing his thoughts about California and the company’s future. Hidden camera reveals State…

  • Los Angeles Mayor Karen Bass ousted the city's fire chief over her handling of last month's devastating wildfires.
    Getty Images
    U.S.
    Feb 21

    Los Angeles mayor removes fire chief over handling of wildfires

    Full Story Los Angeles Mayor Karen Bass ousted the city’s fire chief over her handling of last month’s devastating wildfires. The decision comes amid tension between the two over the city’s fire response.  In a statement, Bass said she met with Kristin Crowley on Friday, Feb. 21, and her termination is effective immediately. Bass cited…

  • Southern California power company investigating if equipment sparked deadly wildfire
    Getty Images
    U.S.
    Feb 7

    LA investigators probe possible link between power company, deadly wildfire

    Los Angeles is now in recovery mode after wildfires ravaged the city in January 2025, leaving behind unprecedented devastation throughout the county. As the region begins to rebuild, investigators are working to determine the cause of the flames. A Southern California utility company may hold some of the answers. Possible link to Southern California Edison…

  • State Farm is asking California for permission to raise its insurance premiums following last month's destructive wildfires.
    Getty Images
    Business
    Feb 4

    State Farm asks to raise California premiums as LA rebuilds

    As Los Angeles rebuilds its communities following last month’s devastating fires, State Farm is asking California for permission to raise its insurance premiums by an average of 22%. The company says it has lost money over the past decade as disaster risks increase, while payouts for the recent fires will be the costliest disasters in…

  • Southern California Edison released new data after video allegedly links its equipment to starting the Eaton Fire in Los Angeles County.
    Getty Images
    Energy
    Jan 28

    Utility releases new data after video allegedly ties it to igniting LA’s Eaton Fire

    A preliminary analysis by utility company, Southern California Edison, reveals new information about what happened on the day one of the devastating Los Angeles fires was ignited. This comes as evidence also emerges alleging the company played a role in starting the deadly Eaton Fire. Southern California Edison, California’s second-largest power provider, has been accused…

  • Both Ukraine and Iran are offering the U.S. help to combat the deadly wildfires in Los Angeles that have burned tens of thousands of acres.
    Getty Images
    International
    Jan 14

    Iran and Ukraine offering US help to put out wildfires in Los Angeles

    Offers of help are coming from unlikely nations as wildfires continue to burn in Los Angeles, California, which have scorched tens of thousands of acres. The latest assistance offers are coming from U.S. adversary Iran and war-torn ally Ukraine. Both nations are offering to send firefighters to Los Angeles as crews continue to battle wildfires…

  • A reporter asked Crowley three times "did they fail you?" in reference to city officials. Crowley eventually responded "yes."
    Getty Images
    U.S.
    Jan 13

    LA fire chief says city failed department during ongoing wildfires

    The Los Angeles mayor’s office and the Los Angeles Fire Department are pushing back against speculation that the LAFD chief had been fired after saying the city failed her agency. This comes after Chief Kristin Crowley spoke candidly with Fox 11 Los Angeles Friday, Jan. 10 about budget cuts that she said has impacted firefighters’…

  • Thursday, due to the Los Angeles wildfires, the NFL moved the wild card playoff game between the Rams and Vikings to Phoenix, Arizona.
    Getty Images
    Sports
    Jan 9

    NFL moves playoff game, other sports impacted by Los Angeles wildfires

    Los Angeles sports teams are taking precautions, moving and postponing events as firefighters continue to battle numerous wildfires around the region. The sheer devastation in some parts of the city is finally coming into focus, and several players, directly impacting coaches and their families. Los Angeles Chargers head coach Jim Harbaugh addressed the media before…

  • Southern California wildfires devastate homes, including those of Hollywood stars like James Woods and Paris Hilton.
    AP Images
    Lifestyle
    Jan 9

    Hollywood stars lose homes as Southern California wildfire rages on

    The Southern California wildfires are leaving a path of devastation, destroying homes and uprooting lives. Hollywood celebrities are among the thousands forced to evacuate and face losing their homes. Actor James Woods flees flames Actor James Woods shared a harrowing experience on CNN of evacuating his home as flames engulfed everything around him. “One day,…

  • As wildfires continue to devastate several areas around Los Angeles, sports leagues and schedules are being impacted.
    Getty Images
    Sports
    Jan 8

    Sports leagues impacted by devastating Los Angeles wildfires

    As wildfires continue to devastate several areas in and around Los Angeles, it’s now impacting sports leagues and schedules. On Wednesday, Jan. 8, the NFL issued a statement saying it is monitoring the fires ahead of Monday night’s Wild Card Playoff game between the Minnesota Vikings and Los Angeles Rams. Air quality is a major…

  • The Los Angeles wildfires have led to the cancellation of Hollywood premieres, including “Unstoppable” and live events like SAG nominations.
    AP Images
    Lifestyle
    Jan 8

    Hollywood premieres and events canceled amid wildfires

    The Los Angeles wildfires are disrupting daily life and forcing Hollywood to make significant adjustments. Several high-profile premieres and events have been canceled or postponed as the fires continue to spread. Studios are prioritizing safety over spectacle. According to Variety, Jennifer Lopez’s “Unstoppable” had a grand Hollywood premiere this week. However, the studio postponed the…

Timeline

  • AT&T and Assurant Protection are teaming up with the Arbor Day Foundation to support reforestation efforts in California.
    Getty Images
    Business
    Apr 7

    Recycle your phone, replant a forest

    AT&T and Assurant Protection are teaming up with the Arbor Day Foundation to support reforestation efforts in California. For the month of April, customers who trade in a phone, tablet or device online or at AT&T stores will help plant a tree at the Placerville Nursery, the state’s only Forest Service nursery and one of…

  • State Farm fires VP for undercover video of him discussing Los Angeles wildfire rate hikes
    Getty Images
    Business
    Mar 13

    State Farm VP fired over comments in undercover video on wildfires, rate hikes

    State Farm Vice President Haden Kirkpatrick, who is no longer employed by the insurance company, made controversial remarks in an undercover video released by O’Keefe Media Group. The footage shows Kirkpatrick discussing rate hikes and the Los Angeles wildfires from January 2025, revealing his thoughts about California and the company’s future. Hidden camera reveals State…

  • Los Angeles Mayor Karen Bass ousted the city's fire chief over her handling of last month's devastating wildfires.
    Getty Images
    U.S.
    Feb 21

    Los Angeles mayor removes fire chief over handling of wildfires

    Full Story Los Angeles Mayor Karen Bass ousted the city’s fire chief over her handling of last month’s devastating wildfires. The decision comes amid tension between the two over the city’s fire response.  In a statement, Bass said she met with Kristin Crowley on Friday, Feb. 21, and her termination is effective immediately. Bass cited…

  • Southern California power company investigating if equipment sparked deadly wildfire
    Getty Images
    U.S.
    Feb 7

    LA investigators probe possible link between power company, deadly wildfire

    Los Angeles is now in recovery mode after wildfires ravaged the city in January 2025, leaving behind unprecedented devastation throughout the county. As the region begins to rebuild, investigators are working to determine the cause of the flames. A Southern California utility company may hold some of the answers. Possible link to Southern California Edison…

  • State Farm is asking California for permission to raise its insurance premiums following last month's destructive wildfires.
    Getty Images
    Business
    Feb 4

    State Farm asks to raise California premiums as LA rebuilds

    As Los Angeles rebuilds its communities following last month’s devastating fires, State Farm is asking California for permission to raise its insurance premiums by an average of 22%. The company says it has lost money over the past decade as disaster risks increase, while payouts for the recent fires will be the costliest disasters in…

  • Southern California Edison released new data after video allegedly links its equipment to starting the Eaton Fire in Los Angeles County.
    Getty Images
    Energy
    Jan 28

    Utility releases new data after video allegedly ties it to igniting LA’s Eaton Fire

    A preliminary analysis by utility company, Southern California Edison, reveals new information about what happened on the day one of the devastating Los Angeles fires was ignited. This comes as evidence also emerges alleging the company played a role in starting the deadly Eaton Fire. Southern California Edison, California’s second-largest power provider, has been accused…

  • Both Ukraine and Iran are offering the U.S. help to combat the deadly wildfires in Los Angeles that have burned tens of thousands of acres.
    Getty Images
    International
    Jan 14

    Iran and Ukraine offering US help to put out wildfires in Los Angeles

    Offers of help are coming from unlikely nations as wildfires continue to burn in Los Angeles, California, which have scorched tens of thousands of acres. The latest assistance offers are coming from U.S. adversary Iran and war-torn ally Ukraine. Both nations are offering to send firefighters to Los Angeles as crews continue to battle wildfires…

  • A reporter asked Crowley three times "did they fail you?" in reference to city officials. Crowley eventually responded "yes."
    Getty Images
    U.S.
    Jan 13

    LA fire chief says city failed department during ongoing wildfires

    The Los Angeles mayor’s office and the Los Angeles Fire Department are pushing back against speculation that the LAFD chief had been fired after saying the city failed her agency. This comes after Chief Kristin Crowley spoke candidly with Fox 11 Los Angeles Friday, Jan. 10 about budget cuts that she said has impacted firefighters’…

  • Thursday, due to the Los Angeles wildfires, the NFL moved the wild card playoff game between the Rams and Vikings to Phoenix, Arizona.
    Getty Images
    Sports
    Jan 9

    NFL moves playoff game, other sports impacted by Los Angeles wildfires

    Los Angeles sports teams are taking precautions, moving and postponing events as firefighters continue to battle numerous wildfires around the region. The sheer devastation in some parts of the city is finally coming into focus, and several players, directly impacting coaches and their families. Los Angeles Chargers head coach Jim Harbaugh addressed the media before…

  • Southern California wildfires devastate homes, including those of Hollywood stars like James Woods and Paris Hilton.
    AP Images
    Lifestyle
    Jan 9

    Hollywood stars lose homes as Southern California wildfire rages on

    The Southern California wildfires are leaving a path of devastation, destroying homes and uprooting lives. Hollywood celebrities are among the thousands forced to evacuate and face losing their homes. Actor James Woods flees flames Actor James Woods shared a harrowing experience on CNN of evacuating his home as flames engulfed everything around him. “One day,…

  • As wildfires continue to devastate several areas around Los Angeles, sports leagues and schedules are being impacted.
    Getty Images
    Sports
    Jan 8

    Sports leagues impacted by devastating Los Angeles wildfires

    As wildfires continue to devastate several areas in and around Los Angeles, it’s now impacting sports leagues and schedules. On Wednesday, Jan. 8, the NFL issued a statement saying it is monitoring the fires ahead of Monday night’s Wild Card Playoff game between the Minnesota Vikings and Los Angeles Rams. Air quality is a major…

  • The Los Angeles wildfires have led to the cancellation of Hollywood premieres, including “Unstoppable” and live events like SAG nominations.
    AP Images
    Lifestyle
    Jan 8

    Hollywood premieres and events canceled amid wildfires

    The Los Angeles wildfires are disrupting daily life and forcing Hollywood to make significant adjustments. Several high-profile premieres and events have been canceled or postponed as the fires continue to spread. Studios are prioritizing safety over spectacle. According to Variety, Jennifer Lopez’s “Unstoppable” had a grand Hollywood premiere this week. However, the studio postponed the…