California Wildfire and Mudslide Controversy: Companies, Including Edison, Settle to Recover Over $2 Billion in Funds
Southern California Edison (SCE) has reached a settlement agreement to recover approximately $2 billion in losses tied to the 2017-2018 wildfire and mudslide events, the company announced.
The recovery includes $1.6 billion of uninsured claims and $400 million in legal costs paid as of May 31 this year. The costs are primarily related to the Woolsey fire of 2018, which burned 96,949 acres of land, destroyed 1,643 structures, killed three people, and prompted the evacuation of more than 295,000 people.
The Woolsey fire is one of the events for which SCE is seeking to recover losses. Last year, the company also sought to recover $1.6 billion in losses related to the Thomas and Koenigstein fires of 2017 and the Montecito Mudslides of 2018, collectively known as TKM.
The California Public Utilities Commission (CPUC) itself reviews and decides on applications for cost recovery related to the 2017-2018 wildfires and mudslides. Such an application is typically submitted by utility companies responsible for the incidents. The agreements need approval from the CPUC.
When combined with pre-approved cost recovery related to the TKM events, this would result in recovery of 43% of the costs related to the 2017-2018 wildfire and mudslide events.
SCE is authorized to recover 35% of losses paid after May 31, 2025, and $71 million or 85% of restoration costs incurred. The company expects to receive the proceeds by the end of 2026.
However, SCE faces lawsuits alleging its electrical equipment started the Eaton fire in Los Angeles this year. The US government's stance on Southern California Edison paying for the costs of the LA fire was not provided in the information.
California's plans to boost the utility wildfire fund by $18 billion were not mentioned in the provided information.
Read also:
- Two farmers in Zambia take legal action against two firms with Chinese connections, alleging an ecological disaster caused by their operations.
- Deepening EU-India relations despite apprehensions regarding Moscow connections
- Ongoing Transition Towards Cleanliness
- Leading European Cities Pioneer Electric Vehicle Charging Infrastructure: Amsterdam and London Take the Front Row
