(Reuters) – Southern California Edison has reached a settlement agreement with several intervenors to allow the utility to recover about $2 billion of $5.6 billion in losses tied to the 2017–2018 wildfire and mudslide events.
Out of the $2 billion, about $1.6 billion consists of uninsured claims and $400 million comprises of legal costs paid as of May 31 this year, the company’s parent, Edison International, said on Friday.
The costs are primarily related to the Woolsey fire of 2018 that burned 96,949 acres of land in California, destroyed 1,643 structures, killed three people, and prompted the evacuation of more than 295,000 people.
Last year, the utility said it was seeking to recover $1.6 billion in losses related to the Thomas and Koenigstein fires which started in 2017 and the Montecito Mudslides of 2018, collectively known as TKM.
SCE has also faced several lawsuits alleging that its electrical equipment started major wildfires in California, including the Eaton fire that tore across Los Angeles earlier this year.
Southern California will also be authorized to recover 35% of losses paid after May 31, 2025 as well as $71 million or 85% of the restoration costs incurred.
The utility said the agreements will need to be approved by the California Public Utilities Commission.
SCE expects to receive the proceeds by the end of 2026, which would result in recovery of 43% of the costs related to the 2017-2018 wildfire and mudslide events when combined with the pre-approved cost recovery related to the TKM events.
(Reporting by Tanay Dhumal and Vallari Srivastava in Bengaluru; Editing by Leroy Leo)
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