Credit And Affordability RiskFailure to address wildfire liabilities could trigger credit rating downgrades that increase borrowing costs and worsen customer affordability pressures.
Insurance Market ResistanceResistance from insurance companies to changing how wildfire risk is shared reduces the odds of a workable funding solution and leaves utilities with concentrated legal and financial risk.
Mitigation Funding And Capital Spending UncertaintyA large accumulation of wildfire mitigation needs requiring public and private funding, combined with uncertainty around regulator approval for costly undergrounding plans, could strain capital allocation and weigh on future earnings.