PG&E Reaches $1 Billion Fire Settlement With Local Agencies

  • Deal covers damages from three years of devastating wildfires
  • Agreement needs bankruptcy court approval to take effect
A neighborhood destroyed by the Camp Fire in Paradise, California on Nov. 15, 2018.Photographer: Justin Sullivan/Getty Images
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PG&E Corp., the California utility giant that went bankrupt five months ago amid crippling wildfire liabilities, has reached a $1 billion settlement with local government agencies that were harmed by blazes its equipment ignited.

The deal between PG&E and 14 public entities includes a settlement for the town of Paradise, which was destroyed in November’s Camp Fire -- the deadliest in California history. It’s the first “significant settlement” since PG&E filed for bankruptcy in January, said Greg Gordon, an analyst at Evercore ISI.