trending Market Intelligence /marketintelligence/en/news-insights/trending/Npzi6wsyAJD18i0Af_fNFg2 content esgSubNav
In This List

PG&E settles another set of wildfire claims, blasts Elliott's alternate proposal

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


PG&E settles another set of wildfire claims, blasts Elliott's alternate proposal

Bankrupt utility PG&E Corp. and its Pacific Gas and Electric Co. subsidiary reached a settlement resolving all insurance subrogation claims relating to the 2017 Northern California wildfires and 2018 Camp Fire.

The settlement is with entities representing approximately 85% of insurance subrogation claims, formalizing an $11 billion agreement in principle announced earlier, according to a Sept. 23 news release.

The agreement is the second major settlement of wildfire claims. The companies in June reached agreements with 18 local public entities to settle their claims relating to 2015, 2017 and 2018 wildfires for a total of $1 billion.

Proceedings regarding the third and final major group of wildfire claims are currently pending in both federal district court and state court, the companies said.

This latest settlement is subject to the approval of the bankruptcy court. The companies plan to file an amended reorganization plan to reflect the finalized settlement and updated backstop financing commitments.

PG&E Corp. said it has received aggregate equity commitments in excess of its $14 billion target amount from a broad array of investors. It plans to allocate the commitments over the course of the coming weeks.

The companies remain on track to have their reorganization plan confirmed in advance of the June 30, 2020, statutory deadline.

Separately, the companies blasted an alternative Chapter 11 proposal submitted by Elliott Management Corp. and the Official Committee of Tort Claimants-led ad hoc committee of senior unsecured noteholders, saying it is "a blatant attempt to unjustly enrich the noteholders who proposed it."

PG&E Corp. said the proposal cannot be confirmed by the bankruptcy court because it would improperly pay one creditor group ahead of another. It added that the proposal would prevent the company from participating in the state's newly formed wildfire fund.

The company plans to submit a response to the Elliott proposal on the schedule set by the bankruptcy court.