The California Legislature passed landmark legislation on Saturday that supporters said will save utility customers billions on their electricity bills annually, while ensuring the state’s wildfire fund, an insurance policy for utilities, remains solvent in the wake of claims from the 2025 Eaton Fire.

Mark Toney, executive director at The Utility Reform Network, or TURN, said his organization supports SB 254 as a first step in the right direction for ratepayer affordability, adding that they appreciate the commitment of Sen. Josh Becker and Assemblymember Cottie Petrie-Norris to ratepayer affordability.

“Given the utility affordability crisis that residents, agriculture, industrial businesses, small businesses and older customers face, we need to work harder than ever in 2026,” Toney said. “Voters have been crystal clear in demanding that legislators put customer affordability ahead of utility company lobbying, and TURN is expecting lawmakers to roll up their sleeves to make utility affordability a top priority in the next legislative session.”

SB 254 (Becker, D-13) will help stem the tide on electricity rate increases while replenishing the state’s wildfire fund. The legislation was backed by strong support from voters: Recent polling shows 85% of voters say it's important for their representatives to do everything possible to lower electricity bills this year.

SB 254 adopts multiple key measures to reduce electricity bills:

• Public financing of transmission: Establishes a transmission infrastructure accelerator to expedite infrastructure development and facilitate public financing to reduce project costs borne by ratepayers by up to 50%, or $3 billion per year.
• Securitization: Ratepayer securitization of $6 billion in wildfire safety capital investments will save ratepayers $3 billion over the next ten years, when compared to utility financing.
• Cost effective wildfire mitigation: Restoring CPUC approval of wildfire mitigation plans will set limits on utility overspending.

"This is the most transformative electricity affordability bill in recent memory—one that uses low-cost financing to deliver the same critical infrastructure California needs at a dramatically lower cost. SB 254 will accelerate clean energy deployment while saving ratepayers billions annually. Millions of utility customers across California will benefit from this legislation, and we look forward to seeing Gov. Newsom sign it into law,” said Sam Uden, co-founder and managing director at Net Zero California.

SB 254 also establishes a wildfire fund replenishment mechanism. California's Wildfire Fund could be wiped out entirely by claims from the 2025 Eaton Fire. 

Under this legislation, utility shareholders will contribute 50% of the cost of replenishing the fund, and utility customers will cover the other half. This mechanism will ensure utilities maintain financial stability to continue serving customers.

“SB 254 delivers on both fronts - billions in electricity savings for customers and a fair approach to replenishing California’s wildfire fund. The 50-50 split ensures this essential coverage stays intact without unfairly burdening any single party. This bill, supported by environmental groups, consumer advocates, and utilities deserves the governor’s signature," said Merrian Borgeson, California climate and energy policy director at Natural Resources Defense Council.