PG&E reaches up to $ 11 billion related to fiery soul claims
An aerial photo of homes destroyed by Camp Fire on February 11, 2019 in Paradise, California.
Justin Sullivan | Getty Images News | Getty Images
Shares of power producer PG&E were up 10% Friday after the company said it has reached a $ 11 billion settlement agreement with entities representing around 85% of fire subrogation claims in 2017 and 2018. [19659002] The California Power Provider stated that these claims were based on payments by insurance companies to individuals and companies with insurance coverage for fire damage.
In January, PG&E petitioned for bankruptcy protection and faced up to $ 30 billion in fire commitments shortly after their power lines led to California's deadliest fire yet last fall. Camp Fire, which burned in Paradise, California last November, killed at least 86 people.
Equipment owned and maintained by the company also started at least 1[ads1]7 of the 21 major fires that burned in California in 2017, according to the California Department of Forestry and Fire Protection. The company expects billions of dollars in losses, primarily from lawsuits brought by fire victims, businesses and insurance companies.
"Today's settlement is another step in doing what is right for the communities, businesses and individuals affected by the devastating forest fires," said Bill Johnson, CEO and President of PG&E.
The $ 11 billion settlement is the tool's second major settlement with wildfire claims. PG&E and 18 other entities said they reached a $ 1 billion settlement in June.
On Monday, the company also revealed the outlines of a reorganization plan that will pay $ 17.9 billion for claims stemming from wildfires. The preliminary plan was immediately criticized by the victims, who said that less than half of this was intended for them.
The plan includes payments of $ 8.4 billion for victims, payments of $ 8.5 billion for reimbursement of insurance companies and a $ 1 billion settlement with local authorities.
PG&E is under pressure to get out of Chapter 11 bankruptcy next year, so it could be part of a state fire fund that will help California utilities pay future claims as fires become more frequent and devastating across the United States [19659012]
