SB 492 would limit utility executive bonuses after utility-caused fires, bill text requires regulatory sign‑off

A prominent feature of SB 492 is a requirement to reduce short-term incentive compensation for certain utility executives when company equipment is determined to have caused a major fire. Witnesses and the author described the provision as intended to align executive incentives with safety outcomes.

Mark Toney cited a statutory framework in his testimony, saying the bill "penalizes utility executives for starting wildfires" and described a mechanism that includes a 35% reduction in salary and bonuses where a wildfire results in loss of life. Senator Becker and staff said the bill requires utilities to adopt compensation plans and that those plans must be approved by the Office of Energy Infrastructure Safety to give the provision "teeth."

Members sought clarity on which executives the provision would affect and where incentive pay is sourced — shareholders or ratepayers. Testimony noted that some top executives’ pay is explicitly shareholder-paid ( because prior law prohibits ratepayer funding for certain top executive salaries), while another layer of senior executives currently have some ratepayer-funded compensation; the bill leaves details about cutoffs and implementation to the compensation plans that the Office must sign off on.

Lawmakers asked whether money saved from unpayout bonuses would be required to flow to mitigation, vegetation management, or other ratepayer benefits; staff said the compensation-plans and the Office’s review would provide implementation specifics. Committee members asked staff for more precise drafting to identify affected pay tiers and any required uses for withheld funds.

The hearing produced no formal action; members asked for additional drafting and regulatory detail before any final vote.