PG & E Signs With California Forest Fire Insurance Companies For $ 11 Billion

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A statement from the company Friday said that there was an agreement "in principle with entities accounting for about 85% of subrogation claims under insurance, at a settlement of $ 11 billion to resolve all these claims ".

In June, the utility paid $ 1 billion in damages to local authorities for fires related to its power lines, poles and other equipment.

Most of the funds are related to last year's campfire in northern California, which killed 85 people and destroyed thousands of homes. The most affected city in Paradise, left in charred ruins, will receive $ 270 million to resolve forest fire claims.

The payments are subject to confirmation from the bankruptcy court since the utility giant filed for bankruptcy protection in January after being subjected to billions of dollars in forest-related claims.

The company said it was "likely" that its equipment had started Camp Fire 2018, the deadliest and most destructive California, when a power line had touched nearby trees. In April, he announced at least $ 7 billion in claims for the forest fire.

In May, Cal Fire issued a final decision that the PG & E power lines were the source of the campfire.

"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 Corporation. "As we work to resolve the remaining claims of those who have suffered, we are also focusing on providing safe and reliable energy to our customers, improving our systems and infrastructure, and maintaining California's clean energy goals.We are committed to becoming the utility that our customers deserve. "

CLARIFICATION: An earlier version of this article did not describe the percentage of claims covered by the regulation.

Rob McLean, Stella Chan and Cheri Mossburg from CNN contributed to this report.

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