If California's wildfires continue and utilities like PG&E are found to be liable, electric rates will skyrocket as costs are passed on to ratepayers.
The report says those rate increases will end up hurting the state's push towards clean energy if electric cars prove costlier than gasoline.
It could also impact California's tech economy.
"If the companies in California continue to be burdened with very high electric rates it's going to make them much more vulnerable to either move to other places or expand in places other than California," according to a PG&E spokesman.
To prevent skyrocketing rates, ratepayers would have to be removed from bearing the burden.
Mark Toney with the Ultuly Reform Network said, "One way to get out of a ratepayer bailout is to develop a 'Calfornia Catastrophic Wildfire Fund' like they have in Florida for hurricanes."
While that may work, Weissman says long term, the state must develop better standards and enforcement policies to reduce the risk of these types of fires.