x
Breaking News
More () »

Bankruptcy judge OKs PG&E's $25 billion settlements with wildfire victims, insurers

The settlements are a big step forward for PG&E as it tries to get out of bankruptcy before the end of June 2020 in order to tap into California’s new wildfire fund.

SACRAMENTO, Calif. — A federal bankruptcy judge approved two PG&E settlements Tuesday totaling nearly $25 billion to help pay homeowners, businesses and insurers for the damage caused in massive and deadly Northern California wildfires in recent years.

The settlements are a big step forward for PG&E as it tries to get out of bankruptcy before the end of June 2020 in order to tap into California’s new wildfire fund — money that will be crucial to keeping the utility in business.

Still, the investor-owned utility must convince Gov. Gavin Newsom that its plan to emerge from bankruptcy is viable, which must do to receive the wildfire fund money its plan relies so heavily on.

WATCH ABC10'S INVESTIGATION: "Fire. Power. Money. California’s burning crisis and how it’s going to cost us all."

PG&E filed for bankruptcy in January because it was facing at least $30 billion in potential damages from lawsuits after the utility’s equipment started massive Northern California wildfires in 2017 and 2018 that killed more than 100 people and destroyed the entire town of Paradise.

Last week, Newsom rejected PG&E’s plan, concluding that it did not sufficiently prove to provide safe and reliable power to its customers.

Newsom’s rejection could have destroyed PG&E’s planned $13.5 billion settlement with survivors, but the utility on Monday revised their agreement so that it would not rely on the governor’s approval. 

The governor's attorneys told the judge Tuesday that he won't stand in the way of this settlement for fire survivors. But the utility must convince Newsom by next year or the settlement could still fall through.

Meanwhile, PG&E also agreed Tuesday to pay $1.7 billion in penalties to the California Public Utilities Commission for sparking fires in 2017 and 2018. The deal would spare PG&E customers from rate increases, which are already some of the highest in the country.

READ MORE:

FOR THE LATEST WILDFIRE NEWS,
DOWNLOAD THE ABC10 APP.

Download on the App StoreGet it on Google Play

Stay In the Know! Sign up now for ABC10's Daily Blend Newsletter

WATCH MORE: How California fires are going to cost us all | FIRE – POWER – MONEY, Ep.3 of 3

Before You Leave, Check This Out