Trial News

Pacific Gas and Electric Co. (PG&E) has agreed to pay $1 billion to 14 California towns and counties hit by wildfires in 2015, 2017, and 2018, including those involved in the deadly 2018 “Camp Fire.” The settlement follows a May 2019 report from the California Department of Forestry & Fire Protection (Cal Fire) announcing that agency’s determination that poorly maintained electrical transmission lines owned and operated by PG&E caused the Camp Fire. (Cnty. of Butte v. Pac. Gas & Elec. Co., No. 19CV00151 (Cal. Super. Ct. Butte Cnty. June 18, 2019).)

The municipalities alleged PG&E negligently and improperly operated its power lines and electrical infrastructure, failed to maintain and clear vegetation near the power lines and equipment, and failed to de-energize power lines during fire-prone conditions. PG&E knew of the significant risk of wildfires due to its inactions for decades, the municipalities claimed, and had been fined repeatedly for failing to mitigate the risks.

The settlement covers damages from the 2015 Butte Fire, the 2017 fires in Northern California, and the 2018 Camp Fire, as previously reported in Trial. PG&E filed for Chapter 11 bankruptcy in January 2019, and the settlement will be included in its reorganization plan.

Dallas attorney Scott Summy, who represents the municipalities, said the settlement will help “the public entities impacted by the wildfires to rebuild and remain resilient. They have been devastated by property damages, loss of tax and permit revenue, and damage to water systems and roads. The funds will be used to address the dynamic needs of each community.” He hopes that as “the first agreement between PG&E and a major stakeholder group, this ‘public entity’ settlement will help break the logjam and allow PG&E to now focus on resolving the individual plaintiffs’ claims.”