After Pacific Gas and Electric Company was found in part responsible for the California Camp Fire that raged through the state this summer, the company has filed bankruptcy and is seeking permission to set up a fund for people who lost homes in the 2017 and 2018 California wildfires.

Reportedly, the California Camp Fire, which was active in November, was caused by PG&E’s power lines, and was fueled by the effects of climate change. NBC News says that PG&E has stated that some of the power lines lost power right before the fire and later were discovered to have been damaged and were connected to the fire.

Jacob Kilstein, an analyst at Argus Research, told NBC News that the power line problem was the “biggest utility failure” he had ever seen. 

Insurance Journal says that the reinsurance company Munich Re deemed the Camp Fire the most expensive natural disaster in the world in 2018. 

The Insurance Journal goes on to say that PG&E sought Chapter 11 bankruptcy protection in January, to protect itself from the legal effects of the fire, estimated at over $30 billion. As part of recovering from the fire, PG&E has proposed setting up a fund from its available cash to help people affected by the fire.

NBC News notes that PG&E cited “billions of dollars in uninsured liability” that contributed to its bankruptcy, related to not only the California Camp Fire but other major fires that affected California around the same time.

U.S. District Judge Dennis Montali said that he wanted the process of creating the compensation fund completed as quickly as possible, giving PG&E until September 19 to file a compensation plan and until November 29 to find support for said plan.

Judge Montali granted the company a four month extension to handle logistics around the bankruptcy and compensation fund — less than the company’s requested six months.

Advocates for victims of the wildfires reportedly called PG&E’s request for extensions merely an attempt to stall, while the company argued that not being granted more time would have a negative effect on the business’s stability.

Victims of the wildfires advocated for a fund of at least $250 million. In his approval of the proposed fund, Judge Montali said that he could not determine the size of the fund, but could only determine whether or not one would be created, according to Insurance Journal.

Tragically, many people were affected by the Camp Fire. Reportedly, the fire killed over 88 people and destroyed over 14,600 housing structures and 530 commercial structures, according to the California Department of Insurance. 

Other fires raged through California around the same time, including the Hill, Thomas, and Woolsey Fires, which also caused considerable damage.

This article is not legal advice. It is presented
for informational purposes only.