Chen Chien Chih, CFA

A typical CA household is now paying an extra $290-450 per year for wildfire mitigation through their electricity bill. About 80% of wildfire mitigation in CA is now being funded through the rate base, while only 20% is being funded through the tax base (CAL FIRE). This is not only a highly regressive way of funding wildfire mitigation but an extremely suboptimal method of reducing fire risk (most fires are not ignited by utilities)!!!

Cities are burning in summer & trees are one of the simplest and most effective solutions, because: They can lower urban temperatures by at least 5°C

Are your neighbors paying less for wildfire insurance than you are? On the same street, in the same neighborhood, it can happen. Insurance companies rate your property on factors outside the area and use models that homeowners usually cannot see. California is looking, through SB 429, to show the math behind what makes your property risky in the eyes of an insurance company, and what you can do about it. But there are opposing opinions saying this could bring a risk of oversimplification, adding more requirements on insurance companies. Some insurers say increasing regulations and wildfire risk are making it harder for them to continue offering coverage in California.