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Report: Napa County, Other California Cities Settle With PG&E Over Wildfires

Report: Napa County, Other California Cities Settle With PG&E Over Wildfires

Multiple counties and cities in California, including Napa County and the city of Napa, reached a settlement agreement with public utility company PG&E Corporation (NYSE: PCG) to resolve wildfire claims, Napa Valley Register reported.

What Happened

Napa County and the city of Napa, in addition to seven other cities and counties, accepted a mediator's proposal of $415 million. The payment is part of PG&E's Chapter 11 plan and will need to be confirmed by a bankruptcy court. The allocation of the funds across the multiple jurisdictions has yet to be finalized.

Napa County, famous for its wine vineyards, filed a lawsuit against PG&E in early 2018. The region claimed the public utility company was negligent in managing its electric infrastructure.

While the region itself didn't suffer any direct damage from fire, it did damage public lands and infrastructure which forced the city to pay for emergency management personnel. Also, Napa officials believe the fire negatively impacted the local wine industry and tourism and the corresponding tax revenue it would have received.

Why It's Important

PG&E Paul Doherty told Napa Valley Register the settlement marks an "important first step toward an orderly, fair and expeditious resolution" of wildfire claims. The settlement also confirms the company's "willingness to work collaboratively with stakeholders."

On the other hand, Napa Deputy County Executive Officer Molly Rattigan said "nothing happens" until all approved claims are finalized and confirmed. In the meantime, the cities and countries "reached a settlement that's still pending approval."

The agreement reached with Napa, if approved, will cover repairs to damaged infrastructure and recover financial losses as a result of the forest fires, Napa City Manager Steve Potter told Napa Valley Register.

PG&E shares closed Tuesday at $19.14.

Related Links:

San Francisco Explores Potential Acquisition Of PG&E Assets

What The California Wildfire Commission Report Means For PG&E

Posted-In: Fire Napa County WildFire wildfiresNews Legal Media Best of Benzinga


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