SAN FRANCISCO _ California regulators proposed a $1.675 billion settlement Tuesday with Pacific Gas & Electric Co. over the disastrous 2017 and 2018 wildfires.
California Public Utilities Commission staff members proposed the deal as part of a settlement agreement with the troubled utility. While not technically a fine, the deal says PG&E's shareholders will eat $1.625 billion in "wildfire-related costs" and not bill its ratepayers.
The proposed deal requires approval of the five-member commission.
In addition, PG&E shareholders agreed to spend another $50 million on "system enhancements" to improve wildfire safety. The company is already spending hundreds of millions of dollars this year on fire safety.
"This settlement agreement underscores our commitment to learning from the past and doing what's right for safety in the future," Chief Executive Bill Johnson said in a prepared statement.
The deal was announced as lawyers for PG&E struggled in Bankruptcy Court to secure approval for a separate, $13.5 billion payment plan to compensate victims of the 2017 fires in Napa and Sonoma and the 2018 Camp Fire, which destroyed most of the city of Paradise. The fires killed more than 120 people.
Bankruptcy Judge Dennis Montali approved the settlement after hours of legal arguments. PG&E still has to develop a broader bankruptcy plan that satisfies Gov. Gavin Newsom, who rejected the utility's first try last Friday.
