Pacific Gas & Electric has agreed to pay $1 billion to resolve claims by federal and state emergency management agencies tied to 2017 and 2018 California wildfires, Kallanish Energy reports.
The troubled company told a federal bankruptcy judge on Tuesday about the settlement.
The Federal Emergency Management Agency had initially sought $4 billion from PG&E.
FEMA filed the claim for its work after the 2017 North Bay and the 2018 Camp fires, both suspected of being caused by PG&E equipment. The fires killed more than 100 people and burned more than 400,000 acres.
The money going to FEMA will come from a $13.5 billion settlement fund for all uninsured wildfire claims, which will lower the amount of money that PG&E can provide to fire victims.
A total of 38 California lawmakers had urged FEMA not to pursue its claim against PG&E.
The company is hoping to emerge from Chapter 11 by mid-2020, after it was saddled with $30 billion in liabilities from the California wildfires.
The company has reached billion-dollar settlements with wildfire victims, insurers, public agencies and bond holders.
In January 2019, the San Francisco-based utility and its parent company, Pacific Gas & Electric Corp., filed for Chapter 11 protection.
Its power lines have been linked to deadly wildfires in northern California in 2017 and 2018.
The company has pledged to do more to prevent wildfires, but it says that preventing wildfires may be impossible in a state like California.
Under California law, the company is held liable for its operations, even if it is not negligent.
PG&E with 16 million customers is regularly cutting power to customers during storms to prevent new wildfires from breaking out from its electricity lines. Dangerous high winds that can cause electric sparks are troublesome.
This post appeared first on Kallanish Energy News.