PG&E Reaches Agreement in Principle to Resolve Insurance Subrogation Claims Relating to 2017 and 2018 Wildfires

PG&E Has Now Reached Settlements with Two of Three Major Groups of Wildfire Claimants; Remains Committed to Working with Individual Claimants

SAN FRANCISCO, Calif. September 13, 2019 – PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) have agreed in principle with entities representing approximately 85 percent of insurance subrogation claims to an $11 billion settlement to resolve all such claims arising from the 2017 Northern California wildfires and 2018 Camp Fire. These claims are based on payments made by insurance companies to individuals and businesses with insurance coverage for wildfire damages.
The settlement is subject to definitive documentation and approval of the Bankruptcy Court overseeing PG&E’s Chapter 11 case. The settlement is to be implemented pursuant to PG&E’s Chapter 11 Plan of Reorganization (the “Plan”), and subject to confirmation of the Plan by the Bankruptcy Court.
“Today’s settlement is another step in doing what’s right for the communities, businesses, and individuals affected by the devastating wildfires,” said Bill Johnson, CEO and President of PG&E Corporation. “As we work to resolve the remaining claims of those who’ve suffered, we are also focused on safely and reliably delivering energy to our customers, improving our systems and infrastructure, and continuing to support California’s clean energy goals. We are committed to becoming the utility our customers deserve.”
This is PG&E’s second major settlement of wildfire claims. On June 19, 2019, PG&E and 18 local public entities (cities, counties, districts and public agencies) announced that they had reached agreements to settle their claims relating to the 2015, 2017, and 2018 wildfires for a total of $1 billion to be implemented as part of the Plan. Proceedings regarding the third and final major group of wildfire claims are currently pending in both Federal District Court and State Court.
PG&E remains committed to working with the individual plaintiffs to fairly and reasonably resolve their claims and will continue to work to do so.
In connection with today’s settlement, PG&E amended the previously announced equity financing commitment agreements to accommodate the total amount of subrogation claims contemplated by the settlement and reaffirmed the total $14 billion equity financing commitment target for the Plan. PG&E has received renewed commitments of $1.5 billion under the revised equity financing commitments and intends to seek remaining equity financing commitments over the next several weeks. PG&E expects that the equity financing commitment will be part of a more comprehensive financing package to emerge from Chapter 11. PG&E also expects to amend the Plan to incorporate the terms of the settlement of the subrogation claims after completion of the definitive documentation for the settlement.
Public Dissemination of Certain Information
PG&E Corporation and Pacific Gas and Electric Company (the “Utility”) routinely provide links to the Utility’s principal regulatory proceedings with the CPUC and the Federal Energy Regulatory Commission (FERC) at http://investor.pgecorp.com, under the “Regulatory Filings” tab, so that such filings are available to investors upon filing with the relevant agency. PG&E Corporation and the Utility also routinely post, or provide direct links to, presentations, documents, and other information that may be of interest to investors at http://investor.pgecorp.com, under the “Chapter 11,” “Wildfire Updates” and “News & Events: Events & Presentations” tabs, respectively, in order to publicly disseminate such information. It is possible that any of these filings or information included therein could be deemed to be material information.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company headquartered in San Francisco. It is the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California. Each of PG&E Corporation and the Utility is a separate entity, with distinct creditors and claimants, and is subject to separate laws, rules and regulations. For more information, visit http://www.pgecorp.com.
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