PG&E Agrees to $100 Million Shareholder Settlement Over 2017 and 2018 California Wildfires
The parent company of Pacific Gas and Electric has agreed to a $100 million settlement with shareholders who accused the utility operator of misleading investors about its wildfire prevention efforts and safety procedures ahead of devastating wildfires in Northern California in 2017 and 2018.
A preliminary settlement was filed on Saturday in U.S. District Court in San Jose, California, and remains subject to approval by a judge.
The shareholders, led by the Public Employees Retirement Association of New Mexico, alleged that PG&E concealed serious deficiencies in its wildfire safety practices. These included problems related to electrical equipment and vegetation management that were blamed for igniting or worsening the 2017 North Bay fires and the 2018 Camp Fire.
The North Bay fires included the Tubbs Fire, which killed 22 people and destroyed more than 5,600 structures, including roughly 5% of all homes in the city of Santa Rosa. The Camp Fire was even more destructive, killing 85 people and destroying more than 18,800 structures, including most of the town of Paradise.
Court documents show that PG&E denied any wrongdoing while agreeing to the settlement.
In a statement, the Oakland, California-based company described the agreement as “a significant step forward in resolving claims stemming from the 2017 and 2018 wildfires,” adding that it continues to work on reducing wildfire risks across its energy system. The company also emphasized that customers will not bear any of the costs associated with the settlement.
The shareholder litigation had been delayed after PG&E filed for bankruptcy protection in January 2019.
In December of that year, PG&E reached a separate $13.5 billion settlement with victims of numerous wildfires. The company later emerged from Chapter 11 bankruptcy protection in June 2020.
