If I understand this system correctly, this means that utilities will need insurance of some sort, and that therefore every home and business in California will

If I understand this system correctly, this means that utilities will need insurance of some sort, and that therefore every home and business in California will pay higher utility rates to cover that extra cost. Indeed it seems a bit of a roundabout way to manage things - I guess the major political advantage is that it is a "hidden" tax? (as opposed to just mandating a certain level of safety and then having the government cover costs of accidents if these levels were respected)