PG&E Corp. and Pacific Gas and Electric Co. (together PG&E) recently shared the following statements of continued support for its settlement agreement with wildfire victims and the company's Plan of Reorganization. The PG&E's plan treats all victims fairly, protects customers, and will enable the company to emerge from Chapter 11 as a financially sound utility positioned to pay victims as soon as possible and support California for the long term.
In December 2019, the PG&E reached a settlement that provides for approximately US$13.5 billion to be transferred to a trust to pay the victims from wildfires in 2015, 2017, and 2018 pursuant to the terms of the PG&E's plan. That settlement was supported by the Official Committee of Tort Claimants and firms representing wildfire victims holding approximately 70% of more than 70,000 wildfire claims filed.
The PG&E previously reached settlements with two other major groups of wildfire claim holders that are provided for in the plan — a US$1 billion settlement with certain cities, counties, and other public entities, with over US$500 million of that amount to go to Butte County agencies, and a US$11 billion settlement with insurance companies and other entities that have already paid insurance coverage for claims relating to the 2017 and 2018 wildfires.
The demonstrations of support for the settlement with wildfire victims and the PG&E's Plan of Reorganization include:
"Since the PG&E settled with victims, the company has won broad support for its Plan of Reorganization, including from the governor. Now all that's standing between victims and the payment they've waited so long for is approval of the plan. The settlement the PG&E reached with victims in December is the best option for getting victims paid fairly and quickly. The best way forward for victims is to support confirmation of the PG&E's plan," said Erin Brockovich, consumer advocate.
"The settlement we reached with the PG&E remains the best option for getting victims paid as soon as possible. This compensation is long deserved. Withholding support for the Plan of Reorganization would only delay payments even further, and I urge victims to support the settlement and the plan," said Joseph Earley, fire victim and attorney representing 11,000 other victims.
"We support the PG&E's Plan of Reorganization, which will do the right things and pay survivors of the catastrophic and tragic wildfires. The plan has the support of the governor and a host of other stakeholders. Victims' support is critical to getting court approval of the plan, releasing the payments these deserving Californians have been waiting for," said Noreen Evans, attorney and former State Senator.
"PG&E's restructuring plan has cleared many hurdles, most recently from the governor's office. Derailing the process now will not serve victims who have been waiting for compensation to help them rebuild their lives. We urge all claimants to support confirmation of the PG&E's plan," said Roy Miller, victims' attorney.
The plan remains subject to approval by the California Public Utilities Commission (CPUC) and the Bankruptcy Court. The Bankruptcy Court is scheduled to hold a hearing on the confirmation of the plan on May 27, 2020, following a vote solicitation process for relevant parties.
