PG&E reaches $11B deal with California wildfire insurers

Pacific Gas & Electric has agreed to pay $11 billion to a group of insurance companies representing most of the claims from Northern California wildfires in 2017 and 2018 as the company tries to emerge from bankruptcy, the utility announced Friday.

Posted: Sep 13, 2019 10:22 AM

By OLGA R. RODRIGUEZ Associated Press

SAN FRANCISCO (AP) — Pacific Gas & Electric has agreed to pay $11 billion to a group of insurance companies representing most of the claims from Northern California wildfires in 2017 and 2018 as the company tries to emerge from bankruptcy, the utility announced Friday.

The utility said in a statement the tentative agreement was reached with insurance companies holding 85% of the claims from fires that included the November 2018 fire that decimated the town of Paradise, killing 86 people.

The insurers said in a separate statement the settlement is well below the $20 billion the insurance companies had sought in bankruptcy court. However, it is more than the company had offered as part of a filing in bankruptcy court earlier this week.

"While this proposed settlement does not fully satisfy the approximately $20 billion in group members' unsecured claims, we hope that 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 insurers said.

The deal removes some of the uncertainty hanging over PG&E as it tries to climb out of its financial pit. The company's stock surged 8% to $10.94 in Friday trading.

"Today's settlement is another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires," PG&E CEO Bill Johnson said in a statement.

The settlement still must be approved by a bankruptcy court. PG&E Corp. on Monday released a plan to offer nearly $18 billion total to wildfire victims, insurance companies and cities and public entities in California that battled wildfires sparked by its electrical equipment.

That figure will now climb to $20.5 billion, including:

— $11 billion for insurance companies as part of the tentative deal;

— $8.4 billion to pay wildfire claims from uninsured victims, which attorneys representing them had rejected as too low;

— $1 billion will go toward local governments affected by the wildfires.

The San Francisco-based company is under deadline pressure to emerge from bankruptcy by June 2020 to participate in a state wildfire fund to help California's major utilities pay out future claims as climate change makes wildfires across the U.S. West more frequent and more destructive.

The utility sought bankruptcy protection in January because it said it could not afford an estimated $30 billion in potential damages from lawsuits stemming from recent wildfires.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 190804

Reported Deaths: 2528
CountyCasesDeaths
Multnomah37830583
Washington25279229
Marion21739306
Clackamas17107209
Lane12799145
Jackson10716135
Deschutes866973
Umatilla814084
Linn479867
Yamhill441175
Klamath430861
Polk369952
Malheur349861
Josephine330268
Douglas322070
Benton302619
Jefferson216734
Coos204633
Columbia170526
Union144423
Lincoln137020
Wasco137028
Hood River117930
Morrow110015
Crook106520
Clatsop9738
Baker94614
Curry6459
Tillamook6363
Grant5065
Lake4447
Harney3378
Wallowa1825
Gilliam621
Sherman581
Wheeler281
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 3757115

Reported Deaths: 62280
CountyCasesDeaths
Los Angeles123542224008
Riverside2990644587
San Bernardino2965144697
San Diego2777593725
Orange2707055005
Santa Clara1188512085
Kern1089931373
Sacramento1041761672
Fresno1016251684
Alameda875851545
Ventura808421011
San Joaquin730091391
Contra Costa68503804
Stanislaus619161055
Tulare49554839
Monterey43563382
San Mateo41844568
San Francisco36616543
Santa Barbara34306453
Solano32752249
Merced31743458
Sonoma29975318
Imperial28352721
Kings22965246
Placer22550290
San Luis Obispo21282260
Madera16439242
Santa Cruz16188206
Marin14034228
Yolo13875209
Shasta12071226
Butte11943199
El Dorado10111112
Napa984981
Sutter9411111
Yuba622146
San Benito604863
Lassen569824
Tehama555358
Nevada470775
Tuolumne412364
Mendocino406149
Humboldt393539
Amador365147
Lake346743
Glenn238125
Colusa223016
Siskiyou218123
Calaveras212153
Inyo142638
Del Norte13678
Mono12804
Plumas7066
Modoc4954
Mariposa4457
Trinity3995
Sierra1120
Alpine880
Unassigned330
Medford
Clear
51° wxIcon
Hi: 68° Lo: 38°
Feels Like: 51°
Brookings
Clear
56° wxIcon
Hi: 71° Lo: 43°
Feels Like: 56°
Crater Lake
Clear
51° wxIcon
Hi: 45° Lo: 24°
Feels Like: 51°
Grants Pass
Clear
51° wxIcon
Hi: 68° Lo: 41°
Feels Like: 51°
Klamath Falls
Clear
44° wxIcon
Hi: 58° Lo: 32°
Feels Like: 39°
Warmer days ahead
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events

Latest Video

Image

Sunday, May 9th Morning Weather

Image

Saturday, May 8th Evening Weather

Image

Saturday, May 8th Morning Weather

Image

Friday, May 7th Evening Weather

Image

Oregon Dept. of Education: Grants Pass SD

Image

Friday, May 7 morning weather

Image

Oregon Dept. of Education: Phoenix-Talent SD

Image

Medford Police Livability Team begins the process of cleaning up the Greenway

Image

Thursday, May 6th Evening Weather

Image

Thursday, May 6 morning weather