Assembly Bill 1054 (AB 1054), signed into law by Governor Gavin Newsom in July 2019, established the California Wildfire Fund to address the growing financial liabilities of investor-owned utility companies (PG&E, Southern California Edison, SDG&E) caused by catastrophic wildfires. This $21 billion fund provides insurance protection to utilities, ensuring they can compensate wildfire victims without facing bankruptcy. This blog examines the mechanics of AB 1054, including eligibility criteria for accessing the fund, the role of the California Public Utilities Commission (CPUC) in determining cost recovery, and the logistics of payments for wildfire claims exceeding $1 billion.