PG&E Corporation and Pacific Gas and Electric Company (PG&E) has agreed to a $13.5 billion settlement to resolve individual claims relating to the 2017 Northern California Wildfires and the 2018 Camp Fire.
The settlement, which also covers claims arising from the 2015 Butte Fire and the 2016 Ghost Ship Fire in Oakland, was agreed with the Official Committee of Tort Claimants (TCC) and with firms representing the individual claimants.
Cal Fire concluded back in May that equipment owned by PG&E was responsible for igniting the Camp Fire last year, and the US utility company is also considered responsible for 17 of the 21 major wildfires that hit California in 2017.
In September, PG&E confirmed an $11 billion agreement to resolve all insurance subrogation claims arising from the 2017 Northern California wildfires and the 2018 Camp Fire.
As part of its Chapter 11 Reorganisation plan, PG&E filed for bankruptcy protection in January in anticipation of the massive fire liabilities it faced from the Camp Fire, which became the deadliest blaze on record.
The utility firm stipulated that the settlement would be subject to a number of conditions, including approval by the Bankruptcy Court, which would put PG&E on course to emerge from bankruptcy by Jun 30, 2020 – the deadline to participate in California’s go-forward wildfire fund.
“From the beginning of the Chapter 11 process, getting wildfire victims fairly compensated, especially the individuals, has been our primary goal. We want to help our customers, our neighbors and our friends in those impacted areas recover and rebuild after these tragic wildfires,” said CEO and President of PG&E Corporation Bill Johnson.
“There have been many calls for PG&E to change in recent years. PG&E’s leadership team has heard those calls for change, and we realize we need to do even more to be a different company now and in the future,” he continued.
“We will continue to make the needed changes to re-earn the trust and respect of our customers, our stakeholders and the public. We recognize we need to deliver safe and reliable energy service every single day—we’re determined to do just that.”
“Finally, we share the state’s focus on helping mitigate the risk of future wildfires and we will continue to do everything we can to help reduce those risks across our system,” concluded Johnson.
