An aerial judgement of homes destroyed by the Camp Fire on February 11, 2019 in Paradise, California.
Justin Sullivan | Getty Images Talk | Getty Images
PG&E said it has reached an $11 billion settlement agreement with entities representing about 85% of guarantee subrogation claims relating to 2017 and 2018 wildfires.
The California power provider said these claims were posted on payments made by insurance companies to individuals and businesses with insurance coverage for wildfire damage.
In January, PG&E entered for bankruptcy protection and faced up to $30 billion in fire liabilities shortly after its power lines sparked what became California’s deadliest wildfire yet ultimate fall. The Camp Fire, which burned in Paradise, California, last November, killed at least 86 people.
Outfit owned and maintained by the company also started at least 17 of the 21 major wildfires that burned in California in 2017, agreeing to the California Department of Forestry and Fire Protection. The company expects billions of dollars in losses, primarily from lawsuits filed by barrage victims, businesses and insurance companies. Shares of PG&E were up 7% in late-morning trading after surging 10% earlier in the day.
“Today’s adjustment is another step in doing what’s right for the communities, businesses and individuals affected by the devastating wildfires,” said Banknote Johnson, president and CEO of PG&E.
The $11 billion settlement is the utility’s second major resolution of wildfire claims. PG&E and 18 other articles said they reached a $1 billion settlement in June.
The company on Monday also unveiled the outlines of a reorganization scenario that will pay $17.9 billion for claims stemming from the wildfires. That preliminary plan was immediately assessed by victims, who said that less than half of that is intended for them.
The plan has payments capped at $8.4 billion for saps, payments capped at $8.5 billion for reimbursing insurers and a $1 billion settlement with local governments.
PG&E is supervised pressure to emerge from its Chapter 11 bankruptcy by next year so it can be part of a state wildfire fund that whim help California’s utilities pay future claims, as wildfires become more frequent and destructive across the U.S.