Ben Allen fights utility liability caps in Sacramento Play

This is the time of the year when California's legislative session hits a deadline for new bills. And this is also the time of the year when closed-door wheeling and dealing ends up with a few surprises.

Two major issues are out there in Sacramento that might affect the Malibu area.

Issue one: power companies.

California's profit-making power companies, lawyers, insurance companies and wildfire victims are watching as the governor and legislature battle over future lawsuits for fire damage.

There is a big battle between the legislature and California Gov. Gavin Newsom. He has proposed to protect California's three big for-profit utility companies from how much they must pay after causing a wildfire.

The governor proposes to limit survivors' compensation for pain and suffering. He wants to curb payments from the power companies to insurance companies — reimbursements for massive payouts to homeowners when power lines spark a fire.

Newsom is concerned that lawsuit payouts are shaking investors' confidence in the companies' financial standing, which will lead to higher power bills for customers.

Arguing against that are local governments, wildfire survivors, consumer advocates and insurance companies.

State Sen. Ben Allen of Malibu says limiting lawsuit and insurance payments for the utilities will create another problem — even higher fire insurance and rebuilding costs.

"I fear we will create a massive new strain on the insurance system that could break basic questions of affordability for Californians," Allen told CalMatters.

Negotiations on this continue behind closed doors at the end of Newsom's final legislative session as governor.