Shares of PG&E and Edison International plummeted on Thursday after California state lawmakers abruptly blocked Governor Gavin Newsom’s high-stakes wildfire insurance reform package.

The legislative proposal was designed to cushion major utility providers from crippling liabilities linked to devastating blazes. However, key lawmakers pushed back against the plan, warning it shifted an unfair financial burden onto rate-paying consumers.

The sudden political roadblock leaves California’s power sector confronting severe financial risk as peak wildfire season looms.