Southern California Edison and two other companies have reached a $22 million settlement with the U.S. government over a 2016 wildfire that devastated thousands of acres of national forest. The fire, known as the Rey Fire, was ignited by a fallen power line owned by Edison. The settlement includes compensation for the damage caused by the fire as well as the costs of firefighting efforts.
First Assistant U.S. Attorney Joseph T. McNally stated that the settlement will provide reimbursement for the expenses incurred in fighting the fire and restoring the federal lands that are enjoyed by all Americans. However, the companies have agreed to pay the settlement without admitting any wrongdoing or fault.
The Rey Fire, which occurred on August 18, 2016, burned over 50 square miles of land, largely in the Los Padres National Forest. The government’s lawsuit accused Edison and Frontier Communications, the owner of the communications lines, along with Utility Tree Service, a contracted tree-trimming company, of negligence in failing to maintain their equipment and prevent the fire.
The lawsuit was later dismissed, and a settlement was reached between the parties. The settlement received approval from the U.S. Department of Justice in May, and all of the settlement money has been paid by this week.
California utilities have regularly faced criticism for their role in causing some of the state’s largest and deadliest wildfires due to neglect of power lines and equipment. This has resulted in significant fines, settlement payments, and even criminal charges. In a separate case, Pacific Gas & Electric (PG&E) had all charges dismissed in connection to a 2020 fatal wildfire, but reached a $50 million settlement with the Shasta County District Attorney’s Office. Additionally, former PG&E executives and directors agreed to pay $117 million to settle a lawsuit over wildfires sparked by the utility’s equipment in 2017 and 2018.
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