California Assembly Advances Bill Mandating Independent Audits for Utility Wildfire Financing

On April 8, 2026, the California Assembly Utilities and Energy Committee passed a significant piece of legislation—Assembly Bill 1774—aimed at addressing one of the primary drivers of utility costs: wildfire mitigation spending. The bill, which received unanimous support from committee members with an 11-0 vote, mandates that independent audits be conducted on utility companies' Wildfire Mitigation Plan (WMP) expenditures before further funding is approved.

Accountability for Utilities

Assemblymember Boerner, the bill's proponent, highlighted the need for greater accountability in the management of funds allocated for wildfire prevention. He expressed concern over the pattern of utilities receiving unchecked funding for mitigation efforts that have not delivered tangible results. "The rubberstamping of utilities' wildfire mitigation plans results in a lack of accountability and overspending for little actual prevention," Boerner stated. "It's time for utilities to answer for the ratepayer money they are being given. We shouldn’t be paying the highest rates while receiving inadequate safety and reliability in return."

Voices of the Wildfire Survivors

Joy Chen, who leads the Every Fire Survivor's Network (EFSN), representing over 10,000 wildfire survivors, shared heart-wrenching testimonies regarding the real-world implications of inadequate wildfire management. Chen emphasized, "The wildfire survivors I represent paid the ultimate price for the failure of utility wildfire mitigation. We lost our homes, our health, our stability, and in some cases our lives. Yet these same families are still paying some of the highest electricity bills in the country to the profit-making utility believed to be responsible for the Eaton Fire."

She noted that utility giant Edison had amassed hundreds of millions of dollars from Californians for wildfire risk mitigation, yet failed to complete essential work that could have prevented such disasters. Evidence indicated that Edison continued to bill customers for these necessary transmission system upgrades without actually executing them.

Past Audits and Future Implications

Consumer Watchdog president Jamie Court referenced the limited oversight that has taken place in the sector, pointing out that only three audits regarding utility wildfire spending have been conducted in modern history. Alarmingly, these audits revealed that the utilities were unable to account for $2.5 billion out of the $6 billion sanctioned for WMP expenditures between 2019 and 2020. Despite this, the Public Utilities Commission allowed these companies to retain previous funding while authorizing additional spending for 2021-2023.

Court added, "California’s three investor-owned utilities are on track to spend about $9 billion annually on wildfire mitigation, and this spending is accelerating. However, the lack of transparency raises questions about how and where the funds are being utilized."

The need for oversight is urgent. Court indicated, "If utilities know they are being monitored, they are more motivated to spend the funds effectively instead of holding onto them for potential investment income. Had AB 1774 been enacted earlier, we may have prevented tragedies like the Eaton fire."

Coalition Support for the Measure

A diverse coalition has rallied behind the bill, including environmental organizations, community action groups, and health advocates. Groups such as the California Environmental Voters, Sierra Club California, and the Public Citizen advocate for increased safety measures and accountability in utility management of wildfire risks. They stress the crucial need for a proactive approach to mitigate future threats, particularly as climate change continues to exacerbate wildfire severity.

In conclusion, AB 1774 represents a pivotal step towards holding utility companies accountable for their wildfire mitigation practices. As California grapples with increasingly devastating wildfires, the implementation of independent audits could ensure that public funds are utilized effectively, promoting safety and reliability for all ratepayers.