The current system, known as inverse condemnation, exposes the state's utilities to liabilities from wildfires regardless of their negligence, as long as their equipment is involved. The current system pushed PG&E to seek bankruptcy protection in January, as it faced liabilities in excess of $30 billion related to the deadliest wildfires in the state's history. SPREAD THE COSTS The governor's report proposed creating two funds to help utilities pay for wildfire damage claims and spread the cost more widely among stakeholders. Another large utility, Southern California Edison Co, said in a statement that it "is encouraged by the broad scope" of Newsom's report, "which reflects the need to address wildfire liability and regulatory reform." Shares of Edison International, the parent company of Southern California Edison, rose 7.2 percent. Travis Miller of Morningstar Research Services LLC said the news was positive for shareholders, though there is "a long road ahead to implementing policies."