LA's main utility to pay wildfire victims although cause of blaze undetermined
In a statement released Wednesday, Southern California Edison announced the establishment of the Wildfire Recovery Compensation Program, a voluntary fund it developed in consultation with Kenneth R Feinberg and Camille S Biros, the duo who designed the September 11th Victim Compensation Fund.
'Community members shouldn't have to wait for the final conclusions in the Eaton Fire investigation to get the financial support they need to begin rebuilding,' Pedro J Pizarro, president and CEO of Edison International, SCE's parent company, said in a statement. 'Even though the details of how the Eaton Fire started are still being evaluated, SCE will offer an expedited process to pay and resolve claims fairly and promptly. This allows the community to focus more on recovery instead of lengthy, expensive litigation.'
Although the Los Angeles fire department is still investigating the cause of the Eaton fire, a leading theory is that the utility's ageing equipment ignited the first spark. Since the fire broke out on 7 January, dozens of families, and even the city of Los Angeles, have filed lawsuits against Southern California Edison.
In its press release, the utility said the victims' compensation program would launch this fall and that participation would require 'no application fees, administrative costs or legal fees'.
The company's announcement comes amid concerns that the state of California's wildfire fund may not be able to handle the size of the insured losses if Edison is found responsible. In that case, the state fund would pay out any settlements in lawsuits against Edison.
The California Earthquake Authority, which administers the fund, told the Los Angeles Times that it worries attorney fees could shrink the fund further (up to half of settlement amounts can go to legal fees).
Attorney Richard Bridgford, who represents victims of the wildfires, meanwhile told the Times: 'Victims have uniformly done better when represented by counsel.'
'In the past, the utilities have proposed these programs as a means for shorting and underpaying victims,' he added. 'They are trying to make people panic so they don't get adequate representation.'
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Reuters
4 days ago
- Reuters
Edison International's quarterly profit falls as L.A. wildfire investigations continue
July 31 (Reuters) - Edison International (EIX.N), opens new tab reported a fall in second-quarter profit on Thursday, as the utility grappled with higher operating expenses while facing investigations related to the Los Angeles wildfires earlier this year. Multiple wildfires in January scorched tens of thousands of acres across Los Angeles in what is expected to have been the most costly natural disaster in U.S. history, and the area's electric utilities have come under increasing scrutiny. While wildfires can cause extensive power outages by damaging power lines and infrastructure, they can also originate from these power lines. Southern California Edison (SCE), Edison International's subsidiary, is facing multiple lawsuits, which allege that its electrical equipment started one of the major wildfires in the Los Angeles area – the Eaton fire. While investigations into the cause of the Eaton Fire are going on, lawsuits have honed in on SCE transmission infrastructure in the hills above the community of Altadena as starting the blaze. "SCE is not aware of evidence pointing to another possible source of ignition," Edison CEO Pedro Pizarro said on a company earnings call. "Absent additional evidence, we believe that SCE equipment could have been associated with the ignition." The company attributed the earnings decline primarily to higher operations and maintenance expenses and the net impact of regulatory decisions at Southern California Edison (SCE). Higher interest expenses at the parent company level also contributed to the decrease. SCE said it expected to invest $6.2 billion to prevent wildfires being caused by, or affecting, its system. The company also plans to launch a wildfire recovery compensation program. California has a wildfire fund that protects utilities like SCE from wildfire liability. On Wednesday, Bloomberg News reported that California Governor Gavin Newsom was proposing legislation to bolster the state's fund with an additional $18 billion for utilities. Electricity ratepayers would contribute half the money through a monthly fee while the other half would be funded by utility companies that benefit from the fund, including Edison International, the report said. The company reaffirmed its forecast for adjusted earnings between $5.94 per share and $6.34 per share for 2025. Analysts expect $6.06 per share. The Rosemead, California-based company, posted second-quarter net income of $343 million, or 89 cents per share, compared with $385 million, or $1.14 per share, a year earlier.
The Guardian
24-07-2025
- The Guardian
LA's main utility to pay wildfire victims although cause of blaze undetermined
Los Angeles's main utility company will compensate victims of January's deadly Eaton wildfire – even though investigators have yet to determine whether the company's equipment sparked the blaze. In a statement released Wednesday, Southern California Edison announced the establishment of the Wildfire Recovery Compensation Program, a voluntary fund it developed in consultation with Kenneth R Feinberg and Camille S Biros, the duo who designed the September 11th Victim Compensation Fund. 'Community members shouldn't have to wait for the final conclusions in the Eaton Fire investigation to get the financial support they need to begin rebuilding,' Pedro J Pizarro, president and CEO of Edison International, SCE's parent company, said in a statement. 'Even though the details of how the Eaton Fire started are still being evaluated, SCE will offer an expedited process to pay and resolve claims fairly and promptly. This allows the community to focus more on recovery instead of lengthy, expensive litigation.' Although the Los Angeles fire department is still investigating the cause of the Eaton fire, a leading theory is that the utility's ageing equipment ignited the first spark. Since the fire broke out on 7 January, dozens of families, and even the city of Los Angeles, have filed lawsuits against Southern California Edison. In its press release, the utility said the victims' compensation program would launch this fall and that participation would require 'no application fees, administrative costs or legal fees'. The company's announcement comes amid concerns that the state of California's wildfire fund may not be able to handle the size of the insured losses if Edison is found responsible. In that case, the state fund would pay out any settlements in lawsuits against Edison. The California Earthquake Authority, which administers the fund, told the Los Angeles Times that it worries attorney fees could shrink the fund further (up to half of settlement amounts can go to legal fees). Attorney Richard Bridgford, who represents victims of the wildfires, meanwhile told the Times: 'Victims have uniformly done better when represented by counsel.' 'In the past, the utilities have proposed these programs as a means for shorting and underpaying victims,' he added. 'They are trying to make people panic so they don't get adequate representation.'
The Independent
24-07-2025
- The Independent
California utility creates fund for victims of January's deadly Eaton Fire near LA
Southern California Edison announced this week that it will create a fund to compensate victims of January's devastating Eaton Fire near Los Angeles. Investigators haven't yet determined a cause for the blaze that killed 19 people and destroyed more than 9,400 homes and other structures in Altadena. The creation of the Wildfire Recovery Compensation Program seems to suggest that the utility is prepared to acknowledge what several lawsuits claim: that its equipmentsparked the conflagration. 'Even though the details of how the Eaton Fire started are still being evaluated, SCE will offer an expedited process to pay and resolve claims fairly and promptly,' Pedro Pizarro, chief executive of Edison International, the utility's parent company, said in a statement Wednesday. 'This allows the community to focus more on recovery instead of lengthy, expensive litigation.' It is not clear how much money the utility will contribute to the fund, but a lawsuit filed by Los Angeles County in March claims that costs and damage estimates were expected to total hundreds of millions of dollars. SCE said the compensation program, which will go into effect this fall, would be open to those who lost homes, rental properties or businesses. It would also cover those who suffered injuries, were harmed by smoke or had family members who were killed. The plan is being created by administrators who helped form similar programs, including the September 11th Victim Compensation Fund of 2001. LA County previously won more than $64 million in a settlement with Southern California Edison over the 2018 Woolsey Fire. Investigators determined SCE's equipment sparked that blaze, and the utility also paid more than $2 billion to settle related insurance claims. Utility equipment has sparked some of the deadliest and most destructive fires in state history in recent years. Investigators are also working to determine the cause of the Palisades Fire, which broke out shortly before the Eaton Fire and killed 12 people and destroyed thousands of structures in Los Angeles.
