Legislation to speed compensation for wildfire victims failed in Sacramento after the Assembly declined to vote on Senate Bill 492, despite a last-minute deal with Gov. Gavin Newsom. The bill’s defeat disappointed survivors and lawmakers who said thousands had demanded reform to prevent ongoing mental and financial stress from wildfires.

It was seen as a win for the state’s three largest for-profit utilities, whose shares rebounded after the vote—Edison International rose nearly 9% to $58.80 and PG&E gained 6% to $14.06. Utilities had argued the bill didn’t reduce their financial risks enough, while investors warned they’d demand higher returns or leave California without stronger protections. Executives from Edison and PG&E urged lawmakers to do more, citing investor concerns over wildfire liability.

Wildfire victims and consumer groups criticized the outcome, accusing utilities of influencing policy and calling for fire prevention instead of bailouts. Newsom said the bill only offered 'half measures' and failed to address the crisis’s root causes, insisting the state must fix the entire problem. Lawmakers plan to continue working on reforms, including limiting utility payments for equipment-sparked fires, and will hold hearings this fall on wildfire liability and prevention.