A fallen PG&E utility pole lays on a property burned during a wildfire. The company has several settlement deals meant to clear liabilities stemming from fires sparked by its equipment. Philip Pacheco / AFP via Getty Images hide caption
************
Philip Pacheco / AFP via Getty Images
A fallen PG&E utility pole lays on a property burned during a wildfire. The company has several settlement deals meant to clear liabilities stemming from fires sparked by its equipment.
Philip Pacheco / AFP via Getty Images
A federal bankruptcy judge in San Francisco on Tuesday approved two settlements totaling $ 26. 5 billion offered by Pacific Gas and Electric Corp. for victims of Northern California wildfires and insurance companies that have paid out damage claims. The utility has acknowledged that its equipment ignited several catastrophic wildfires in recent years.
A settlement of $ (***************************************************************************************. 5 billion,announced last week
, is designated to compensate wildfire victims. Another $ (billion will (go to the insurers)
US Bankruptcy Judge Dennis Montali released his decision after a marathon five-hour hearing Tuesday. The action improves the utility’s bid to exit bankruptcy actions before a June (********************************************************************, 2020, deadline. That’s when the utility could become eligible for a state-financed wildfire fund.
The judge also allowed a civil suit to be brought against PG&E by families of the victims of the December “Ghost Ship” fire which killed 46 people. A trial will determine the utility’s liability in that blaze.
“Today marks an important milestone – the Bankruptcy Court has approved our settlement agreements resolving all major wildfire claims,” PG&E said in an emailed statement. “This brings us one significant step closer to getting victims paid so they can rebuild their lives.”
However, PG & E’s bankruptcy plan still faces opposition from California Gov. Gavin Newsom who wants the company restructured with anew board of directorsthat would prioritize safety. PG&E needs Newsom’s approval to participate in the California wildfire fund established by the legislature that would help all the state’s utilities to cover their liabilities in the event of future fires.
The utility also faces a challenge from a group of hedge funds that are seeking control of the company.
****************
********
In a related development, the utility also agreed to a proposed $ 1. billion settlement with state energy regulators for PG & E’s role in igniting deadly fires in and 2386.
“This includes wildfires that occurred in in Butte, Calaveras, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba Counties, and the deadly (Camp Fire, “according to a) statementreleased by the California Public Utilities Commission.
The statement added:
“The proposed settlement … prevents the utility from recovering $ 1. billion in wildfire -related costs from ratepayers and would fund an additional $ million by PG&E shareholders in system enhancements and community engagement initiatives to strengthen its electric operations and maintenance in an effort to mitigate the risk of wildfires. This amounts to a total financial obligation by PG&E shareholders of $ 1. billion . “
That proposed settlement is subject to public review, the commission’s review and court approval.
******************************
Read More**********************************
GIPHY App Key not set. Please check settings