PG&E reaches $11 billion settlement relating to wildfire claims

The utility company was blamed for downed power lines that killed dozens and destroyed thousands of homes.
Image: Paradise fire
CalFire firefighter Scott Wit surveys burnt out vehicles near a fallen power line on the side of the road after the Camp fire tore through the area in Paradise, Calif., on Nov. 10, 2018.Josh Edelson / AFP - Getty Images

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/ Source: Reuters
By Reuters

Utility company PG&E said on Friday it has reached an $11 billion settlement agreement with entities representing about 85 percent of insurance subrogation claims relating to 2017 and 2018 wildfires.

PG&E was blamed for igniting several wildfires caused by downed power lines that killed dozens and destroyed thousands of homes.

The company said these claims were based on payments made by insurance companies to individuals and businesses with insurance coverage for wildfire damages.

PG&E filed for bankruptcy earlier this year citing billions of dollars in expected losses, mostly from lawsuits filed by individual fire victims, businesses and insurance companies.

Shares in PG&E were up 10 percent in premarket trading on Friday.