Pacific Gas and Electric announced a $13.5 billion settlement with California wildfire victims (JUSTIN SULLIVAN)
<p>Los Angeles (AFP) – A California energy supplier has reached a nearly $1.7 billion settlement with regulators for its role in causing devastating wildfires in 2017 and 2018 that killed more than 100 people in total.</p><p>Faulty Pacific Gas and Electric power lines were blamed for sparking last year’s so-called Camp Fire in northern California, the deadliest in the state’s modern history.</p><p>Under the draft deal published Tuesday, PG&amp;E shareholders will foot the bill for wildfire-related costs, as well as forest fire-fighting measures and the upkeep of electrical equipment blamed for causing several fatal blazes.</p><p>It cannot pass the costs on to ratepayers.</p><p>PG&amp;E filed for bankruptcy protection in January, saying it faced more than $30 billion in fire-related claims.</p><p>The firm is bidding to resolve its liabilities by a June government deadline, in order to gain access to a multi-billion-dollar fund to compensate wildfire victims. </p><p>It also announced a $13.5 billion settlement with victims earlier this month over fires that destroyed thousands of homes.</p><p>But California Governor Gavin Newsom, who must sign off on the plan to emerge from bankruptcy, rejected the victim settlement, calling it "woefully short" of the state’s requirements.</p><p>He called for sweeping organizational changes.</p><p>The state "remains focused on meeting the needs of Californians including fair treatment of victims," and not on Wall Street financial interests funding an exit from bankruptcy, he wrote in a letter to PG&amp;E CEO William Johnson.</p><p>Obsolete equipment, wooden power poles and uncleared land around high-voltage lines have been blamed for triggering the fires, and PG&amp;E was accused of putting its profits ahead of safety.</p><p>The draft settlement must still pass through further reviews.</p><p></p>

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.