That's not the question under consideration.

The question under consideration is if it constitutional for the government to "impose prohibitive fire prevention liabilities on utility companies, bankrupt them, and scoop up the assets for free".

Under my understanding of the law, no you can't do that, due to the takings clause and it's incorporation under the 14th amendment.

I think the law should be different, I don't agree with incorporation doctrine. But I still don't think the government should impose prohibitive fire prevention liabilities on utility companies, bankrupt them, and scoop up the assets for free.

Hopefully that clears everything up for you.