Southern California Edison has hosted multiple sessions with Altadena residents over the last week to hear feedback before the company releases the Wildfire Recovery Compensation Program later this fall.
The plan will offer Eaton Fire victims payouts for incurred losses, quicker than going through the litigation process.
The compensation plan varies depending on the circumstances of the claimant, including
whether the resident was an owner or renter, and whether or not it was a total loss, sustained partial damage or was contaminated by smoke.
Through this program, SoCal Edison will include payouts for economic loss, noneconomic
losses, attorney fees and direct claim premiums.
The premiums are only available to residents who settle directly with SoCal Edison and would not apply to those who pursue litigation.
Jeff Monford, a spokesperson for SoCal Edison said in a phone interview, that the Wildlife Recovery Compensation program, “allows eligible community members to focus on recovery rather than uncertain, lengthy litigation.”
“There are no fees or added costs,” he added. “No individual claimant is required to accept the amount offered.”
Residents who accept must drop all further litigation against the company. These payments do not “constitute an admission of liability or wrongdoing,” SoCal Edison said.
However, video accounts from the night of Jan. 7 and ongoing mass tort and class-action
lawsuits launched by Eaton Fire victims disagree with the company’s non-fault claims.
The company is also facing lawsuits from Los Angeles County and the federal government for its alleged role in causing the fire.
“As written, Edison’s proposal is wholly inadequate,” The Eaton Fire Survivors Network (EFSN) said in a statement to the EFSN community. “It excludes many families, undervalues real losses, and mirrors tactics courts have already ruled unlawful when insurers tried them.”
The cost of the final payouts to residents that continue to pursue litigation is expected to deplete the state-created $21 billion Wildfire Fund that was created by California Gov. Gavin Newsom in 2019.
“SCE continues to have confidence in the wildfire fund and its claim-paying capacity,” Monford said.
The fund has been used as a backup to insurance for California residents impacted by fires
found to be caused by utility companies. Utilities including SoCal Edison, Pacific Gas and
Electric and San Diego Gas and Electric pay into.
Half the fund amount comes from ratepayers and the other half comes from shareholders in these publicly traded utilities.
To pay for these compensation packages proposed to Eaton Fire victims, Monford said that
“The first $1 billion of claims is paid by SCE’s customer-funded insurance. We would then seek reimbursement from the state wildfire fund for claims payments after SCE exhausts its $1 billion of wildfire insurance.”
After the compensation packages are made public this fall, they will be available to all eligible Eaton Fire victims for a year following its release.
“I’ll close by saying that recovery is much more than new building,” said Funmi Williamson, senior vice president and chief customer officer of SoCal Edison, at the in-person compensation feedback event on Sept. 27.
“We are committed to Southern California and this community. Thank you for your resilience and know that we are here to support you.”
