California judge approves PG&E wildfire settlements worth $24B

Dec. 18 (UPI) -- A bankruptcy court has approved two settlements worth $24.5 billion from California's largest utility to compensate victims of several major wildfires that were caused by problems with its power equipment.

Judge Dennis Montali ruled late Tuesday on a pair of proposed settlements from Pacific Gas & Electric after a five-hour hearing in a San Francisco court.

The settlements include $13.5 billion for victims of Bay Area wildfires in 2016 and 2017 and $11 billion for insurance companies that have already paid out claims related to the blazes. Tuesday, the utility agreed to pay a $1.6 billion settlement stemming from several fires between 2017 and 2018.

The deal covers four major wildfires that were blamed on PG&E -- the 2018 Camp Fire; the 2017 Tubbs Fire; the Butte Fire in 2015 and Ghost Ship Fire in 2016. The fires killed a combined 145 people. The Camp Fire was the largest wildfire in California history.

"There are tens of thousands of people who just want to go about their lives," Montali said.

The settlements were viewed as a key step in PG&E's efforts to exit bankruptcy. If it can do so by a June 30, PG&E could become eligible for a new state-financed wildfire fund.

California Gov. Gavin Newsom, who must approve both settlements, has so far rejected PG&E's bankruptcy plans.

The utility filed an amended reorganization plan last week to stay on track to meet the June deadline. Newson said, however, the proposal doesn't go far enough to position PG&E as a "safe, reliable and affordable" provider.