PG&E announces USD 11 bn settlement in deadly California fires

Bankrupt US utility company Pacific Gas and Electric announced Friday it has reached a USD 11 billion settlement with insurance companies over the deadly wildfires in California last year blamed on faulty power lines. The San Francisco-based company said the settlement covers 85 percent of the insurance claims in the 2018 Camp Fire in Northern California -- the deadliest in the state's modern history -- that left 86 people dead.

"Today's settlement is another step in doing what's right for the communities, businesses, and individuals affected by the devastating wildfires," PG&E chief Bill Johnson said in a statement. The blaze ravaged more than 60,000 hectares (153,000 acres) of land and destroyed nearly 19,000 houses and other structures, consuming the small town of Paradise.

PG&E acknowledged that its equipment was to blame for the disaster, and filed for bankruptcy protection in January. Johnson took over the reins in April. The insurance settlement is part of the bankruptcy reorganization plan, and the company said it would continue to work with individuals to "fairly" resolve their claims.

The company in June reached a settlement with local governments and agencies a totally of USD 1 billion. "As we work to resolve the remaining claims of those who have suffered, we are also focused on safely and reliably delivering energy to our customers, improving our systems and infrastructure, and continuing to support California's clean energy goals," Johnson said.

The company's share price surged 7.5 percent in early trading in New York. 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)