2018 Woolsey Fire Insurance Claims Settle For $2.2B

2018 Woolsey Fire Insurance Claims Settle For $2.2B

Introduction

Southern California Edison, the largest subsidiary of Edison International and the primary electricity supply company for much of Southern California, reached a settlement worth $2.2 billion to resolve insurance claims linked to the 2018 Woolsey fire. The tragic incident happened on Nov. 8, 2018, and destroyed 1,643 structures, killed three people, and burned 97,000 acres. More than 295,000 people were evacuated from Los Angeles and Ventura counties, along with certain portions of Agoura Hills, Malibu Westlake Village, and Calabasas to the city of Malibu. The Ventura County fire authorities found that the fire that arose near the former Rocketdyne site in the hills west of Chatsworth and south of Simi Valley in the early morning was caused by the company's equipment. The wildfire, which began as a brush fire raised concern among several watchdog groups and neighbors who had been asking for a total clean-up of the facility. The California Department of Toxic Substances Control denied any public health threats from the fire, which stopped at the site and began again a few days later, spreading across other areas. The company did not admit any wrongdoing and in the statement added that it has also reached settlements in the 2017 Thomas and Koenigstein fires and the 2018 Montecito mudslides. Last year, the company had reached a $360 million settlement with local government agencies associated with the same cases. Earlier, bankrupt PG&E corporation is attempting to compensate $13.5 billion as part of a restructuring plan to the victims of the wildfire that recently took place in Northern California. The rival group of creditors, namely Pacific Investment Management and Elliott Management, have also offered the same amount of compensation to the victims. PG&E is trying to get out of bankruptcy until next year by restructuring a plan for the same. The company went bankrupt due to the malfunctioning of equipment leading to catastrophic wildfires and damaging an estimated $30 billion worth of liabilities. Governor of California has warned PG&E to come up with a suitable reorganisational plan soon. Even the judge has ordered the victims and PG&E to try an agreement at the earliest. PG&E has ensured that the victims will receive reasonable and fair settlement very soon.