Edison International expects to begin accepting applications “well before” Thanksgiving to compensate victims of the deadly Eaton Fire that destroyed swaths of the Los Angeles area in January, according to CEO Pedro Pizarro.
That puts the utility company’s wildfire recovery compensation program on track to issue payments by early 2026, much faster than victims could expect if they seek reimbursement through litigation, Pizarro said Wednesday in an interview in New York.
Still, it could also mean lower payouts than victims might expect through the lengthier litigation process.
Related: California Plans to Boost Utility Wildfire Fund by $18 Billion
Edison’s Southern California Edison announced the compensation program in July. The cause of the fire is under investigation and Edison hasn’t accepted responsibility for the blaze, which killed 19 people and destroyed thousands of structures in Altadena. Multiple lawsuits allege that its equipment started the fire. The company has acknowledged that its utility equipment could be linked with its start.
Investors are curious how the wildfire will impact both the utility and California’s wildfire fund, set up to help compensate victims of multiple destructive blazes and limit utility shareholder losses. Insured losses from the Eaton Fire are estimated to be as much as $23 billion. Still, participation in these types of voluntary claims programs is “historically limited,” with many victims preferring to hold out for larger settlement sums, according to a research note from Capstone.
Related: US Government Says Southern California Edison Should Pay for LA Fire Costs
Owners who lost single-family residences will be eligible for reimbursements of $550 to $750 per square foot, subject to insurance coverage adjustments, according to draft protocols of the program issued this month. That works out to about $900,000 for a 1,500 square foot home, based on Edison calculations. Owners who choose to settle directly with Edison without involving mediation or litigation would receive an additional $200,000, plus another $100,000 for each adult and $50,000 for each child as compensation for pain and suffering.
The fastest processing option should take about 60 days between submitting a claim and receiving an offer, and then checks should be issued 30 days after victims accept the offer, Pizarro said. The company is pushing to get the process going quickly.
“It’s really before Thanksgiving,” Pizarro said. “The website will be up. Phone lines will be open. We’ll probably have some folks at a physical location to help people who are not us web savvy.”
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