California Utility Bills Rise 20% Due to Wildfires

Government report calls for overhaul of state's wildfire response as climate change drives more destructive blazes.

Apr. 10, 2026 at 2:21pm

Got story updates? Submit your updates here. ›

A vibrant abstract illustration composed of overlapping triangles and rectangles in shades of blue, red, and yellow, conceptually representing the rising cost of electricity in California due to wildfire-related surcharges.Wildfires are driving up electricity costs for Californians, adding a growing financial burden to the state's climate change challenges.Los Angeles Today

A new government report reveals that the escalating cost of wildfires in California has added an average of $41 per month to residential utility bills for customers of the state's largest power provider, Pacific Gas & Electric. The surcharge accounts for 19% of the average PG&E bill and is one way Californians are paying the price for more frequent and severe wildfires driven by climate change.

Why it matters

The report highlights how the economic impacts of wildfires are rippling through California's economy, lowering home values, destabilizing insurance markets, and threatening the state's climate goals by making electricity more expensive. Policymakers are now grappling with how to overhaul the state's wildfire response and shift the financial burden away from ratepayers.

The details

The report from the California Earthquake Authority found that wildfire-related charges now account for 17% of monthly bills from Southern California Edison and 14% from San Diego Gas & Electric, the state's two other major investor-owned utilities. The report calls for a systemic overhaul, including establishing a state-sponsored wildfire home insurer and ending utilities' liability for inadvertently starting fires, in order to stabilize insurance markets and lower costs for consumers.

  • The report was issued this week by the California Earthquake Authority.
  • Wildfire-related surcharges have increased 37% on California electricity bills between 2020 and 2025.

The players

Pacific Gas & Electric Corp.

California's largest utility, whose customers are seeing a $41 per month surcharge on their bills due to wildfire costs.

Southern California Edison

One of California's major investor-owned utilities, with wildfire-related charges accounting for 17% of monthly bills.

San Diego Gas & Electric

One of California's major investor-owned utilities, with wildfire-related charges accounting for 14% of monthly bills.

California Earthquake Authority

A quasi-public agency that manages a $21 billion wildfire insurance fund and issued the report on the economic impacts of wildfires.

Gavin Newsom

The Governor of California who signed legislation last September requiring the California Earthquake Authority to recommend a new model for rebalancing wildfire risks.

Got photos? Submit your photos here. ›

What they’re saying

“When you raise electricity prices, that makes the cost of electrifying your car or your space heating or your water heating higher, so that's going to slow progress on electrification.”

— Meredith Fowlie, Economist, University of California at Berkeley

“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's recommendations, including establishing a state-sponsored wildfire home insurer and ending utilities' liability for inadvertently starting fires, are likely to face controversy as policymakers debate how to shift the financial burden of wildfires away from ratepayers.

The takeaway

The escalating costs of wildfires are becoming embedded in California's economy, driving up utility bills, homeowner insurance premiums, and threatening the state's climate goals. Policymakers are now under pressure to enact systemic reforms to stabilize insurance markets, protect vulnerable communities, and find a more equitable way to distribute the financial risks of climate-driven disasters.