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Aerial view of houses destroyed by camp fire on February 11, 2019 in Paradise California.
Justin Sullivan | Getty Images News | Getty Images
Shares of energy producer PG & E rose 10% on Friday after the company announced a $ 11 billion settlement agreement with entities representing approximately 85% of subrogation claims. fire insurance for 2017 and 2018.
The California electricity supplier said these claims were based on payments made by insurance companies to individuals and companies benefiting from forest damage insurance coverage. .
In January, PG & E filed for bankruptcy protection and faces a $ 30 billion fire charge shortly after its power lines triggered what became California's deadliest fire in the world. last fall. The campfire, which burned in Paradise, California last November, killed at least 86 people.
According to the California Department of Forests and Fire Protection, the company's owned and maintained equipment has also started at least 17 of the 21 major fires that burned in California in 2017. The company expects to losses in billions of dollars, mainly because of lawsuits filed by fire victims, companies and insurance companies.
"Today's settlement is another step in achieving what is right for the communities, businesses and people affected by the devastating wildfires," said Bill Johnson, CEO and Chairman of PG & E.
The settlement, worth $ 11 billion, is the second major utility transaction involving forest fire claims. PG & E and 18 other entities reported a $ 1 billion settlement in June.
The company also unveiled Monday the outline of a reorganization plan that will pay $ 17.9 billion for forest fire claims. The victims immediately criticized this preliminary plan, claiming that less than half of this amount was intended for them.
The plan includes payments capped at $ 8.4 billion for victims, payments capped at $ 8.5 billion for reimbursement of insurers and a $ 1 billion settlement with local governments.
PG & E is under pressure to get out of Chapter 11 bankruptcy by next year to become part of a state firefighting fund that would allow California utilities to pay their future royalties. fires becoming more and more frequent and destructive in the United States.
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