Financial Tug-Of-War Emerges Over Fire Victims’ Settlement

SAN FRANCISCO (AP) – A financial tug-of-war is emerging over the $13.5 billion that the nation’s largest utility has agreed to pay to victims of recent California wildfires, as government agencies jockey for more than half the money to cover the costs of their response to the catastrophes. The settlement Pacific Gas & Electric reached with lawyers representing wildfire victims leaves open how much would be used to compensate people who lost family members, homes and businesses in the fires. Attorneys also argue that the California Office of Emergency Services should not be able to recover costs of carrying out public services such as response to fires. California state agencies say they’re owed about $3.3 billion, and federal agencies including FEMA filed claims totaling $4.3 billion. Many of the fire victims are upset that the settlement sends cash and P-G-&-E stock into a trust that stretches out payments over a number of years, while insurance companies will get their settlement in immediate lump sum cash payments.

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