PG&E Reaches $50 Million Settlement for Zogg Fire Incident

Pacific Gas & Electric (PG&E) has reached a settlement of $50 million with the Shasta County District Attorneys in relation to the devastating Zogg Fire that occurred in 2020. The fire, which began on September 27, claimed the lives of four individuals, scorched over 56,000 acres of land, and resulted in criminal charges against PG&E (which have since been dropped).

The California Department of Forestry and Fire Protection (Cal Fire) determined that the Zogg Fire was sparked when a tree fell onto a PG&E distribution line. While a tentative court order initially found no evidence of negligence in multiple inspections of the area, this decision was met with opposition from protestors who voiced their dissent outside the courthouse. In response, PG&E maintained their stance, issuing a news release asserting their innocence and denying any wrongdoing.

Under the terms of the settlement, PG&E has agreed to make the following payments:

• $45 million will be allocated to support organizations involved in ongoing rebuilding efforts and providing assistance to those affected by the fire.
• $5 million will be paid directly to Shasta County as a penalty.
• In addition to this settlement, PG&E recently reached another agreement with the California Public Utilities Commission, which approved a separate $150 million settlement. Within this agreement, PG&E will contribute $10 million to California’s General Fund, and $140 million will be allocated to shareholder funds designated for the development of new initiatives aimed at mitigating future wildfire risks.
• The $50 million settlement effectively brings the legal proceedings of the lawsuit, People v. Pacific Gas & Electric Co., Case No. 020363, to a close in the Shasta County Superior Court.