PG&E gets court approval of $105 million wildfire assistance fund

By Sarah Lizee

Olympia, Wash., May 22 – PG&E Corp. obtained court approval to establish and fund a $105 million program to help those displaced by 2017 and 2018 California wildfires with “alternative living expenses and other urgent needs,” according to a docket entry made Wednesday with the U.S. Bankruptcy Court for the Northern District of California.

As previously reported, PG&E said in the motion that, although it is creating the fund for the victims, “there has been no legal determination that the debtors are liable for any claims associated with the 2017 and 2018 wildfires,” and it was not admitting liability.

The company said many of the wildfire claimants expect to have the costs of substitute or temporary housing for 12 months to 24 months covered by insurance, but “others are uninsured or have exhausted their insurance.”

According to the motion, a program administrator will determine eligibility criteria for the program, and will consult with the Federal Emergency Management Agency to ensure eligible claimants do not receive funds from both FEMA and the assistance program for the same expenses.

PG&E’s official committee of unsecured creditors had objected to the company’s motion to establish and fund the program, saying that it is sympathetic to the victims of the 2017 and 2018 wildfires, but its “overarching objective in these cases is to achieve confirmation of a comprehensive plan of reorganization that treats all creditors, including wildfire victims, fairly and equally, and in a manner that is consistent with the Bankruptcy Code.”

“The program does not do this,” the objection said.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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