This period, California's utility sector suffered a major blow. The state legislature rejected a bill backed by Governor Newsom that would have limited utilities' wildfire liability, triggering a sharp sell-off in related stocks. PG&E plunged 20% in a single day, erasing its year-to-date gains and reigniting market concerns over wildfire litigation costs.
- California lawmakers rejected a bill backed by Governor Newsom that would have shielded utilities from wildfire lawsuits by insurers.
- PG&E stock crashed 20%, Edison International dropped 23%, and Sempra also declined sharply.
- Analysts downgraded the stocks, citing open-ended wildfire liability risk.