PG&E reaches $11 billion settlement relating to wildfire claims

An aerial view of homes destroyed by the Camp Fire on February 11, 2019 in Paradise, California.

Justin Sullivan | Getty Images News | Getty Images

Shares of power producer PG&E were up 10% Friday after the company said it has reached an $11 billion settlement agreement with entities representing about 85% of insurance subrogation claims relating to 2017 and 2018 wildfires.

The company said these claims were based on payments made by insurance companies to individuals and businesses with insurance coverage for wildfire damages.

In January, the company filed for bankruptcy protection and now faces up to $30 billion in fire liabilities shortly after its power lines sparked what became California’s deadliest wildfire yet last fall. Camp Fire, which burned in Paradise, California last November, killed at least 86 people. 

Equipment owned and maintained by the company also started at least 17 of the 21 major wildfires that burned in California in 2017, according to the California Department of Forestry and Fire Protection.  

“Today’s settlement is another step in doing what’s right for the communities, businesses and individuals affected by the devastating wildfires,” said Bill Johnson, CEO and president of PG&E. 

This is breaking news. Please check back for updates.

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