Pacific Gas & Electric shares were down after the California Senate agreed on a bill that would hold utilities companies responsible for more costs following wildfires.

The stock fell 11% to $14.75 in premarket trading Monday. Through the prior close, shares were up 2% this year.

If California's wildfire liability fund--which reimburses legal claims following a wildfire caused by a utilities company--runs out of money, the Senate Bill 492 would require PG&E to pay nearly 48% of the fund.

The costs of those contributions can't be passed on to ratepayers, and there is no cap on disallowances if PG&E is deemed to have acted with disregard for the rights and safety of residents when igniting a fire.

PG&E said in a statement Saturday that the bill didn't adequately address the financing risks created by California's current wildfire liability framework.

"While the proposed legislation would make some progress in helping wildfire survivors recover and strengthening wildfire preparedness, it would not provide the sustainable solution California needs," the utility provider said.

In addition to the liability fund changes, the bill includes new protections for wildfire victims, including a program to speed up payments to people affected by a fire.

It would also ban hedge funds and private equity firms from investing in wildfire claims, and would bar utility executives from receiving short-term bonuses if their company ignites a wildfire that causes deaths or widespread destruction.