Wildfires Hike California Utility Bills by Hundreds Annually

New report finds customers of major providers face 14-19% increases due to wildfire costs

Apr. 10, 2026 at 5:54pm

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A vast, atmospheric landscape painting depicting a raging wildfire consuming a small town in the distance, with the dramatic, sweeping scale of the natural disaster dwarfing the physical structures below.As the devastating impacts of wildfires continue to ripple through California's communities, the staggering financial toll is now being felt directly by residents through skyrocketing utility bills.Edison Today

A new report found that Pacific Gas & Electric customers in California are forced to shoulder 19% more in added costs on their monthly power bills due to the impact of recent destructive wildfires, while customers of Southern California Edison and San Diego Gas & Electric pay an additional 17% and 14% respectively. The report warns that wildfire risk is a 'recurring cost embedded in the state's economy' and predicts electricity and insurance prices will continue to rise.

Why it matters

Wildfires have become an increasingly common and devastating occurrence in California, causing billions in damage and disrupting communities. The added utility costs passed on to residents only exacerbate the financial strain on households already facing the state's high costs of living, including some of the nation's most expensive gas and electricity prices.

The details

The report from the California Earthquake Authority found that the 2025 Los Angeles wildfires alone cost the area between $250 and $275 billion, with insurance only covering around $22.4 billion of the total. Many residents have still not returned to their homes, and communities remain ravaged and fire-scarred. The report calls for establishing a state-sponsored wildfire home insurer to relieve private insurance companies of liability, ending liability for accidentally starting fires, and creating new programs to help homeowners rebuild and protect their homes.

  • The 2025 Los Angeles wildfires occurred in the summer of that year.
  • The new report was published on April 10, 2026.

The players

Pacific Gas & Electric

California's largest utility provider, whose customers face 19% higher monthly bills due to wildfire costs.

Southern California Edison

A major California utility provider whose customers face 17% higher monthly bills due to wildfire costs.

San Diego Gas & Electric

A California utility provider whose customers face 14% higher monthly bills due to wildfire costs.

California Earthquake Authority

The organization that published the report on the financial impacts of wildfires on California utility customers.

Ben Deci

A spokesperson for the California Earthquake Authority.

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What they’re saying

“Wildfire risk is not just an occasional catastrophe, but a recurring cost embedded in the state's economy.”

— California Earthquake Authority

“We have communities that are unacceptably vulnerable to fire, and we haven't done enough to change that.”

— Nancy Watkins, Principal and Actuary, Milliman

What’s next

The report recommends that California establish a state-sponsored wildfire home insurer to relieve private insurance companies of liability, end liability for accidentally starting fires, and create new programs to help homeowners rebuild and protect their homes.

The takeaway

The financial burden of California's increasingly frequent and destructive wildfires is being passed on to utility customers through higher monthly bills, exacerbating the already high cost of living in the state. Addressing this issue will require a comprehensive approach to reduce wildfire risk, support homeowners, and stabilize the insurance market.