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PG&E, 9 Entities Agree to Mediator’s Proposal, Resolve North Bay Fires Claims

June 18, 2019, Lakeport, Lake County

Today, a group of nine counties and cities, including the County of Lake, announced that it and PG&E have accepted a mediator’s proposal of $415 million to resolve the collective cities’ and counties’ North Bay Fires claims. The Mediator’s proposal is exclusive of and does not affect the claims of any residents, individuals, or businesses. The collective amount of $415 million will be allocated among each of the nine public entities in an allocation process.    

Lake County’s damages claim, resulting from the Sulphur Fire, represents only a small part of this collective amount.

The payment is to be incorporated in, subject to confirmation by the Bankruptcy Court, a plan of reorganization to be filed by PG&E in its pending Chapter 11 case. The settlement is part of a total settlement of $1 billion to be paid to local government entities pursuant to the confirmed plan of reorganization.

JAMS Mediator Judge Jay Gandhi (Ret.) presided over several days of in-person mediation sessions held in San Francisco, California. Participants in the mediation included 14 public entities with various claims from the 2015 Butte Fire, the 2017 North Bay Fires, and the 2018 Camp Fire. Judge Gandhi’s global proposals included a total payment of $1 billion to be made pursuant to PG&E’s confirmed plan of reorganization. PG&E and all 14 public entities accepted the proposals.

 

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