Ratepayer Impacts of Strict Liability and Inverse Condemnation

Overview

Inverse condemnation with strict liability has significant implications for California ratepayers. While it provides a mechanism for property owners to hold utilities accountable for wildfire damages, it also places a financial burden on the ratepayers. Given that investor-owned utilities (IOUs) are responsible for most of the state’s electricity transmission and distribution, we need to ensure that these utilities operate responsibly and can continue to provide reliable service to ratepayers, while still being held accountable for wildfire damages where they act negligently or imprudently.

This paper provides recommendations to consider as we begin exploring changes to inverse condemnation and strict liability that protects utility customers.

Download: Ratepayer Impacts of Strict Liability and Inverse Condemnation in California