Wildfire Policy That Bankrupted PG&E Recommended for Overhaul

California should change the legal doctrine that forced its largest power company into bankruptcy and establish a fund to help utilities pay for the costs of increasingly catastrophic wildfires, a state-appointed commission said in a draft report.

The state should use a “fault-based” standard and consider whether utilities acted prudently when deciding whether they’re responsible for the damages of wildfires their equipment ignited, according to an executive summary posted to the government’s website late Wednesday. The draft report has yet to be approved by the full commission, which was established to address the billions of dollars in fires liabilities that ...