Pacific Gas & Electric and attorneys for the victims of 2017 and 2018 California wildfires that killed dozens of people and ravaged homes and businesses, agreed on Friday to a $13.5 billion settlement, the New York Times reports.
The impact per the Times: "The agreement could help tens of thousands of residents rebuild while helping to resolve the utility’s bankruptcy."
The state of play: Some of the funds will be directed to help pay claims of federal and state agencies, as well as victims' attorneys.
- Per the Times, "a settlement would significantly increase the likelihood that PG&E will emerge from bankruptcy before a crucial deadline in June," so the company can draw from a wildfire fund that the state established earlier this year.
Background: The utility filed for bankruptcy in January, facing an estimated $30 billion in claims.
- In June, PG&E agreed to a $1 billion settlement with a group of public entities for its involvement in the deadly wildfires dating back to 2015.
- The California Public Utilities Commission launched an investigation into PG&E in late October over a series of power shutoffs, which affected millions, aiming to prevent the spread of wildfires during high-wind periods and dry spells.
- California Gov. Gavin Newsom said in November that his administration was putting together a plan to take over PG&E should it fail to resolve its ongoing bankruptcy proceedings.
- Nearly two dozen California mayors and county leaders have pressed state regulators to help transform the embattled, bankrupt power giant into a customer-owned cooperative.
What they're saying:
What to watch: Friday's settlement requires approval from U.S. Bankruptcy Court. A hearing is set for Dec. 20, the Times notes.
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