Jan 12 (Reuters) – The parent of Pacific Gas and Electric reached a $100 million settlement with shareholders who accused the utility operator of misleading them about its wildfire prevention and safety protocols before wildfires in northern California in 2017 and 2018.
A preliminary settlement with PG&E (PCG.N), opens new tab was filed on Saturday with the U.S. District Court in San Jose, California, and requires a judge’s approval.
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Shareholders led by the Public Employees Retirement Association of New Mexico said PG&E concealed its defective wildfire safety practices, including electrical equipment and vegetation management blamed for starting or exacerbating the 2017 North Bay fires and 2018 Camp Fire.
The North Bay fires included the Tubbs Fire, which killed 22 people and destroyed more than 5,600 structures, opens new tab, including about 5% of the homes in the city of Santa Rosa. The Camp Fire killed 85 people and destroyed more than 18,800 structures, opens new tab, including most of the town of Paradise.
PG&E denied wrongdoing in agreeing to settle, court papers show.
In a statement, the Oakland, California-based company called the settlement “a significant step forward in resolving claims from the 2017 and 2018 wildfires, as we continue our work to reduce wildfire risk across our energy system.” Customers are not paying for any of the settlement, it added.
The litigation was delayed after PG&E filed for bankruptcy in January 2019.
PG&E reached a $13.5 billion settlement with victims of many wildfires the following December, and emerged from Chapter 11 protection from creditors in June 2020.
Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama
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