PG&E Reaches Deal to Settle FEMA Wildfire Claims

PG&E (NYSE: PCG) has worked out a deal to settle claims from the Federal Emergency Management Agency (FEMA) and California's Office of Emergency Services, clearing more obstacles as the company moves to emerge from Chapter 11 bankruptcy later this year.

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FEMA and the California Governor's Office of Emergency Services have agreed to reduce their claims to $1 billion as part of the deal, according to a MarketWatch report citing PG&E attorney Stephen Karotkin. Prior to reaching the deal the two agencies were seeking a payout of roughly $4 billion from PG&E's wildfire compensation fund for the victims of Northern California wildfires that took place in 2015, 2017, and 2018. The agencies have agreed they will not be compensated unless there are funds remaining after the victim payouts.

Source Fool.com