Story at a glance
- PG&E proposed a new $1.68 billion dollar settlement in the wake of the California wildfires destruction.
- The company will pledge not to collect almost $1.63 billion in costs from ratepayers, while allocating $50 million to enhancements in it’s infrastructure.
- The company is waiting on legal approval for its settlements to avoid bankruptcy.
Pacific Gas and Electric, commonly known as PG&E, announced a settlement to pay for the damages of the lethal 2017 and 2018 California wildfires that were likely caused by the company’s faulty equipment.
In a press release, PG&E proposed a multiparty settlement agreement in which they will not collect nearly $1.63 billion in costs from ratepayers and customers who were negatively affected by the wildfires, as well as a commitment to invest $50 million in shareholder funding to system enhancements.
The specifications for system enhancements include multiple training and certification programs, such as implementing a pre-inspector training and certificate program, consulting with an independent wildfire safety auditor, leading safety-themed town halls with a panel of PG&E officers, quarterly reporting on electric maintenance work and expediting nondiesel generation solutions.
The settlement is still pending California Public Utilities Commission (CPUC) approval.
These sweeping changes come as the embattled utility company has recently filed for bankruptcy in the wake of a wave of lawsuits totaling upwards of $20 billion. Previous settlements include the $13.5 billion to wildfire victims and establishing a $105 million dollar Wildfire Assistance Fund for continued aid to any persons recovering from the fires.
PG&E also reached settlements amounting to $12 billion in negotiations with cities, countries and insurance carriers impacted by the fires.
Despite the efforts, California lawmakers like Governor Gavin Newsom (D) and state Sen. Jerry Hill (D) believe the company has more to do. Newsom rejected the $13.5 billion dollar settlement bill submitted by the company, while Sen. Hill calls the aforementioned $1.68 billion dollar settlement a “farce.”
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