Latest news with #SouthernCaliforniaEdison
RTHK
23 minutes ago
- Business
- RTHK
Power giant to compensate LA Eaton fire victims
Power giant to compensate LA Eaton fire victims A firefighter battles a blaze in the Angeles National Forest near Mount Wilson during the Eaton Fire, which is suspected to be caused by Southern California Edison equipment. File photo: Reuters The US power company whose lines are suspected of starting one of the deadly fires that ravaged Los Angeles this year said it would compensate victims even without any formal finding it was at fault. Southern California Edison – which faces multiple costly lawsuits over the huge blazes – said it would establish a fund that would offer payouts to those who lost their homes or whose health was affected. It gave no figure for the size of the fund, and no precise timeline, but such a system could allow the company to avoid some of the bumper legal battles it is expected to face. Two enormous fires that erupted in January killed 31 people and destroyed more than 16,000 homes and buildings around Los Angeles. Investigations are still ongoing to determine the causes of two separate blazes that ravaged the affluent neighborhood of Pacific Palisades and parts of Malibu, and the city of Altadena, a more modest suburb located in the mountains to the northeast. For several months, the finger of blame has been pointing at a Southern California Edison (SCE) powerline as the root of the Eaton Fire that consumed Altadena. Several videos and witness accounts suggest that the equipment produced sparks that could have caused the fast-moving conflagration. Victims "shouldn't have to wait for the final conclusions in the Eaton Fire investigation to get the financial support they need to begin rebuilding," said Pedro Pizarro, president and CEO of Edison International, SCE's parent company. "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." The fund will cover homeowners and tenants whose homes were damaged or destroyed, as well as business owners whose property was damaged or whose business was interrupted, a statement said. It will also pay out for personal injuries and offer compensation to family members of those who died in the fire. (AFP)
France 24
an hour ago
- Business
- France 24
Power company says to pay compensation over LA fire
Southern California Edison -- which faces multiple costly lawsuits over the huge blazes -- said it would establish a fund that would offer payouts to those who lost their homes or whose health was affected. It gave no figure for the size of the fund, and no precise timeline, but such a system could allow the company to avoid some of the bumper legal battles it is expected to face. Two enormous fires that erupted in January killed 31 people and destroyed more than 16,000 homes and buildings around Los Angeles. Investigations are still ongoing to determine the causes of two separate blazes that ravaged the affluent neighborhood of Pacific Palisades and parts of Malibu, and the city of Altadena, a more modest suburb located in the mountains to the northeast. For several months, the finger of blame has been pointing at a Southern California Edison (SCE) powerline as the root of the Eaton Fire that consumed Altadena. Several videos and witness accounts suggest that the equipment produced sparks that could have caused the fast-moving conflagration. Victims "shouldn't have to wait for the final conclusions in the Eaton Fire investigation to get the financial support they need to begin rebuilding," said Pedro Pizarro, president and CEO of Edison International, SCE's parent company. "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." The fund will cover homeowners and tenants whose homes were damaged or destroyed, as well as business owners whose property was damaged or whose business was interrupted, a statement said. It will also pay out for personal injuries and offer compensation to family members of those who died in the fire. California's changing climate -- a result of humanity's unchecked use of fossil fuels over the last 150 years -- is increasing the frequency and intensity of extreme events, including wildfires. But SCE's powerlines have frequently been pinpointed as the source of ignition in large blazes. That has included the 2018 Woolsey Fire, which killed three people and ravaged the mountains behind Malibu. Last May, the utility also agreed to pay $82.5 million to settle lawsuits related to the Bobcat Fire, a blaze that burned nearly 116,000 acres (47,000 hectares) in the San Gabriel Mountains in 2020.
The Guardian
4 hours ago
- Business
- The Guardian
Insurance claims from LA fires could ‘fully exhaust' $21bn state fund
Insurance claims from the Eaton wildfire could 'fully exhaust' a state fund that was set up to protect customers when a wildfire is caused by a utility company. The devastating wildfire in Los Angeles killed 17 people and destroyed more than 9,000 structures in January. One leading theory is that ageing equipment belonging to Southern California Edison, the primary electricity provider in the region, ignited the fire. If the utility company is found to have been responsible for igniting the devastating January blaze, then the 'financial health of the fund could be strained', according to documents published by California's Catastrophe Response Council, a group of lawmakers and members of the public who oversee the state's wildfire fund. California lawmakers established the state's $21bn wildfire fund in 2019 in an effort to prevent the state's largest utility companies from declaring bankruptcy if their equipment caused a fire. The fund is made up of money the utility companies contribute and a surcharge on customers' utility bills. Power lines and other utility equipment are a top cause of wildfires in drought-ridden California – and have sparked some of the state's most devastating blazes including the 2018 Camp fire that killed more than 80 people. Although investigators are still determining the cause of the Eaton fire, the utility company has been under scrutiny since the blaze broke out. The wildfire fund is overseen by a seven-member council that includes the governor, insurance commissioner, treasurer and secretary for natural resources, members of the public and lawmakers. Before the council's scheduled 24 July meeting, the group published minutes from its 1 May meeting and a draft annual report to the legislature. Those documents suggest that insurance claims from the Eaton fire could drain its resources entirely. Insured losses for both wildfires that devastated southern California in January – the Eaton and the Palisades fires – range from $20bn to $45bn, according to estimates from financial services companies, such as Moody's and Milliman, and the University of California at Los Angeles Anderson School of Management. The risk management firm Verisk estimates that insured losses from the Eaton fire alone could reach $15.2bn. Those estimates have prompted the fund council to warn that, if it is determined that the Eaton fire was sparked by utility equipment, 'the resulting claims may be substantial enough to fully exhaust the Fund'. The losses could far exceed the fund pending ongoing lawsuits. Dozens of families who lost homes in the Eaton fire have sued Southern California Edison. If investigators determine the blaze was sparked by utility equipment, the state fund would also be responsible for paying any settlements in those lawsuits. The documents published before the council's meeting include strategies its members are considering in consultation with experts to ensure the financial durability of the fund. The committee also drafted a letter stating that 'they want to make sure most of the Fund is going to wildfire recovery experts and not third-party actors', such as hedge funds or attorneys. The council documents note that hedge funds are purchasing insurance industry subrogation rights, or the right to the insurance claim, in an attempt to profit from the wildfires. By doing so, hedge funds are agreeing to pay the insurance claim, but would take home any winnings from a legal settlement if Southern California Edison is found liable. The California Earthquake Authority, which administers the fund under the oversight of the council, also 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). Another tactic may include paying out 'only reasonable claims'. In notes to the fund administrator, one council member asks their colleagues to consider requiring utility companies to 'settle claims with diligence' – since the fund, not the utilities, ultimately pay those settlements.
Los Angeles Times
5 hours ago
- Business
- Los Angeles Times
Edison offers to pay Eaton fire victims for damages, in move to avoid litigation
Seeking to avoid lengthy litigation, Southern California Edison said Wednesday it will offer to compensate Eaton fire victims directly for damages suffered, even though it has yet to formally concede that its equipment ignited the blaze on Jan. 7. Edison said it planned to launch a Wildfire Recovery Compensation Program this fall that would be open to those who lost homes, businesses or rental properties in the fire that killed 19 people and destroyed more than 9,400 homes and other structures in Altadena. It would also cover those who were harmed by smoke, suffered physical injuries or had family members who died. '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 press release. 'This allows the community to focus more on recovery instead of lengthy, expensive litigation.' The utility said it had hired consultants Kenneth R. Feinberg and Camille S. Biros, who had worked on the September 11th Victim Compensation Fund, to help design the program. Dozens of lawsuits have been filed against Edison in the wake of the Jan. 7 fire that videos captured igniting under a transmission line in Eaton Canyon. The cause is still under investigation, but Pizarro has said a leading theory is that an idle Edison transmission line, last used in 1971, somehow became re-energized and started the blaze. An attorney who represents fire victims expressed skepticism of the plan, saying it could lead to reduced compensation for fire victims. 'In the past, the utilities have proposed these programs as a means for shorting and underpaying victims,' said attorney Richard Bridgford said. 'Victims have uniformly done better when represented by counsel.' Edison said the program would be designed to quickly compensate victims, including those who were insured. People can apply with or without an attorney, it said. The program is expected to run through 2026. 'The architecture and timing of the SCE direct claims program will be instrumental in efficiently managing funding resources, mitigating interest costs and minimizing inflationary pressures so funds can address actual claims and fairly compensate community members for their losses,' Pizarro said. If Edison is found responsible for the fire, the state's $21 billion wildfire fund is expected to reimburse the company for all or most of the payments it makes to victims. Brigford said he believed the wildfire fund would be enough to cover the Eaton fire claims. 'They are trying to make people panic so they don't get adequate representation,' he said. Others are concerned that the state wildfire fund is inadequate. Officials at the Earthquake Authority, which administers the wildfire fund, said in documents released in advance of a Thursday meeting that they fear the costs of the Eaton fire could exhaust the fund. State officials plan to discuss what can be done to lengthen the life of the fund at the meeting. Edison said more information on eligibility and other details of the compensation plan would be released in the coming weeks.
New York Times
6 hours ago
- Business
- New York Times
Edison Creates Wildfire Fund for Eaton Fire Victims
Southern California Edison on Wednesday announced a wildfire compensation program for victims of January's deadly Eaton Fire in the Los Angeles area. California officials have not concluded that the fire, which killed 17 people and destroyed more than 9,400 buildings in Altadena, was set by the utility company's equipment, and Edison has not accepted responsibility for it. But by setting up the fund before an official cause is identified, Edison appears to be suggesting that it will be found responsible for igniting the blaze. The utility's Wildfire Recovery Compensation Program will begin this fall. The company says the effort will expedite claims for homeowners and renters, including for total and partial structure loss, commercial property loss, business interruption, smoke and ash damage, physical injury and fatalities. The program is designed as an alternative to potentially lengthy lawsuits. '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 chief executive of Edison International, the parent company of Southern California Edison, said in a statement. 'Even though the details of how the Eaton Fire started are still being evaluated, S.C.E. 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.' Wildfire victims have filed scores of lawsuits against Edison, accusing the utility of causing the Eaton Fire. These cases have cited a broad body of evidence pointing to the power company's electrical equipment. A gas station video and data from sensors operated by Whisker Labs, a technology company, indicated that Edison's power lines in the Altadena area were under stress as winds reached 100 m.p.h. The video appears to show power lines in Eaton Canyon sparking before flames ignited. Edison said it was working with Kenneth R. Feinberg and Camille S. Biros, who specialize in developing and administering compensation funds. The pair have been involved in such funds, including those that benefited the victims of the Sept. 11, 2001 terrorist attacks. Participation in the wildfire recovery program through Edison is voluntary, the utility said.
