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PG&E reaches $11B settlement related to 2017, 2018 wildfires

PG&E Corp. and its Pacific Gas and Electric Co. subsidiary announced Sept. 13 an $11 billion settlement in principle related to the 2017 Northern California wildfires and 2018 Camp Fire.

The settlement agreement was reached with entities representing approximately 85% of insurance subrogation claims to resolve claims stemming from the fires, according to a news release. The claims are based on payments by insurance companies to people and businesses with insurance coverage for wildfire damages.

The settlement is subject to "definitive documentation" and approval of the bankruptcy court presiding over the company's Chapter 11 reorganization plan.

It is PG&E's second major wildfire claims settlement. On June 19, the company announced a $1 billion settlement with local governments and public agencies for claims related to wildfires in 2015, 2017 and 2018.

Proceedings for the third and final major group of wildfire claims are pending in federal district court and state court, PG&E said.

PG&E also amended previously announced equity financing commitment agreements to accommodate the total value of subrogation claims in the settlement and reaffirmed the total $14 billion equity financing target for its Chapter 11 reorganization plan. PG&E said it has received renewed commitments of $1.5 billion under the revised equity financing commitments and will seek remaining commitments in coming weeks.