PG&E (PCG +3.4%) moves higher after California's state senate yesterday easily passed legislation to protect utilities from wildfire costs, with no amendments.

The bill, which would create a fund of at least $21B to cover future wildfire claims and launch several changes to the way the state oversees the safety of its electric grid, now heads to the state Assembly, which is under pressure from Gov. Newsom and Wall Street to act before the end of this week.

A key remaining issue is the ability of PG&E to use net income securitization to finance wildfire damages and insurance fund contributions, as the bill contains no language that would enable this feature.

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