$24.5 Billion Settlement Plan Approved for Pacific Gas and Electric California Fires

A federal bankruptcy judge recently approved two settlements offered by the utilities giant for victims of Pacific Gas and Electric California fires.

PG&E offered two settlements for victims of the Northern California wildfires that had been attributed to the utilities company. PG&E itself has acknowledged its responsibility for several of the fires in Northern California in recent years, caused by its equipment.

One of the settlements amounts to $13.5 billion and was announced last week. This settlement is meant to resolve all claims connected with the Pacific Gas and California Electric Fires in Northern California, which caused destruction including property damage, injuries, and even the deaths of dozens of people.

“We want to help our customers, our neighbors and our friends in those impacted areas recover and rebuild after these tragic wildfires,” PG&E Corp. CEO and President Bill Johnson said in a statement.

The other settlement, of $11 billion, is set to go to the insurers. “These claims are based on payments made by insurance companies to individuals and businesses with insurance coverage for wildfire damages” caused by the Pacific Gas and Electric California fires, the company said.

The settlements were approved by U.S. Bankruptcy Judge Dennis Montali after a five-hour hearing. Judge Montali has also allowed a separate civil suit to be brought against the utility company by families of those killed or injured in the December 2016 “Ghost Ship” fire, which caused 36 deaths. The utility’s liability in that fire has not yet been determined, so there will soon be a trial.

“Today marks an important milestone—the Bankruptcy Court has approved our settlement agreements resolving all major wildfire claims,” said PG&E in a statement via email. “This brings us one significant step closer to getting victims paid so they can rebuild their lives.”

However, PG&E’s current bankruptcy plan is not quite in the clear. California Gov. Gavin Newsom wants the company to restructure, getting a whole new board of directors to help re-prioritize safety. Newsom’s approval is necessary for PG&E to participate in the California wildfire fund, which would help cover their liabilities for future fires.

PG&E has also agreed to another separate settlement with state energy regulators, of $1.675 billion, for the company’s role in the 2017 and 2018 fires.

“This includes wildfires that occurred in 2017 in Butte, Calaveras, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba Counties, and the deadly 2018 Camp Fire,” said the California Public Utilities Commission in a statement.

If you were affected by one of the recent Pacific Gas and Electric California fires, the deadline for making PG&E fire claims has passed. However, you may be able to receive further compensation. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation. Even if you have already received compensation, you may not have received all the compensation you’re due.

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