PG&E Corporation (NYSE: PCG) have agreed to pay 85% of insurance subrogation claims, amounting in an USD 11 Billion settlement. This is in regards to the 2018 Camp Fire and 2017 Northern California wildfires. The claims are based on payments made by insurance companies to businesses and individuals with insurance coverages for wildfire damages. The settlement requires approval by the Bankruptcy Court that is managing PG&E’s Chapter 11 case.
“Today’s settlement is another step in doing what’s right for the communities, businesses, and individuals affected by the devastating wildfires,” said Bill Johnson, CEO and President of PG&E Corporation. “As we work to resolve the remaining claims of those who’ve suffered, we are also focused on safely and reliably delivering energy to our customers, improving our systems and infrastructure, and continuing to support California’s clean energy goals. We are committed to becoming the utility our customers deserve.”
Although the plaintiffs, represented by The Ad Hoc Subrogation Group had initially proposed a settlement to fulfill the USD 20 Billion in claims, the company has devised a reorganization plan that will be released Monday, that will pay for USD 17.9 Billion in claims from the wildfires that pushed it to obtain bankruptcy protection earlier this year.
“This compromise will pave the way for a plan of reorganization that allows PG&E to fairly compensate all victims and emerge from Chapter 11 by the June 2020 legislative deadline,” the group said in a statement.
This is the second hefty settlement against the company due to wildfire claims. PG&E Corporation is a holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.