PG&E Settles With Some California Communities on Wildfire Claims
June 18 2019 - 6:15PM
Dow Jones News
By Micah Maidenberg
PG&E Corp. has agreed to pay $1 billion to a range of
California cities, counties and other government entities to settle
claims related to taxpayer losses caused by three devastating fires
in the state.
The utility holding company, which filed for Chapter 11
bankruptcy protection in January, agreed to make payments to
several public entities that pursued claims related to the Butte
Fire in 2015, the North Bay fires in 2017 and the Camp Fire last
year. The parent of Pacific Gas and Electric Co. cited more than
$30 billion in potential liability costs tied to deadly wildfires
in recent years.
"This is an important first step toward an orderly, fair and
expeditious resolution of wildfire claims and a demonstration of
our willingness to work collaboratively with stakeholders to
achieve mutually acceptable resolutions," the utility said Tuesday
in a statement. "We hope to continue making progress with other
stakeholders."
The settlement must be approved by the bankruptcy court, as part
of the broader reorganization of PG&E.
The town of Paradise will receive funds due to the Camp Fire, as
will a park district there and two counties. California
investigators have found that PG&E's equipment ignited the Camp
Fire last year, which killed 85 people and has been deemed the
deadliest wildfire in state history.
A water district in Calaveras County is the only government
district in line for compensation as part of the settlement
announced Tuesday in connection with the Butte Fire in 2015,
according to Baron & Budd.
John Fiske, an attorney at Baron & Budd, a law firm that
represents the public agencies in line for compensation, said the
settlement was the first he was aware of, as creditors pursue
claims against PG&E while the bankruptcy proceedings are under
way. Governmental entities, insurers and individual plaintiffs are
the three major groups seeking compensation from PG&E, he
said.
A mediator oversaw several days of negotiations between the
utility and the public-agency plaintiffs, according to Baron &
Budd. The settlement doesn't affect claims from residents,
individuals, or businesses who were affected by the fires.
The entities in line for compensation for damages related to the
North Bay fires as part of the settlement include cities like Napa
and Santa Rosa, as well as counties like Mendocino, Napa and
Nevada.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
June 18, 2019 18:00 ET (22:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
PG&E (NYSE:PCG)
Historical Stock Chart
From Apr 2024 to May 2024
PG&E (NYSE:PCG)
Historical Stock Chart
From May 2023 to May 2024