PG&E reached a $38 million settlement with law firm Baron & Budd, P.C. on behalf of six public entities that were impacted by the 2022 Mosquito Fire. The agreement resolves public and natural‑resource damage claims, covering losses to public infrastructure, water systems, staff labor, lost revenues, and other fire‑related costs.
The Mosquito Fire began on September 6 2022 and burned 76,788 acres across Placer and El Dorado counties, making it California’s largest wildfire of that year. The settlement represents a portion of the estimated $100 million deficit reported in PG&E’s 2022 Form 10‑K for Mosquito Fire liabilities.
By settling these claims, PG&E reduces its future liability exposure and clarifies the financial impact of the Mosquito Fire on its balance sheet. Removing a specific claim from the books provides clearer forecasting and signals proactive management of wildfire‑related liabilities, supporting regulatory confidence and helping maintain the company’s investment‑grade status.
PG&E’s history of wildfire liability has led to bankruptcy filings and billions in settlements. The company is investing heavily in wildfire mitigation—undergrounding power lines, hardening systems, and pursuing a triple‑bottom‑line strategy of people, planet, and prosperity—to manage risk and protect public safety. The Mosquito Fire settlement is part of this broader effort.
The cause of the Mosquito Fire remains under investigation; initial assessments suggest PG&E’s power line equipment may be involved, and a transmission pole was seized by the U.S. Forest Service as part of the criminal investigation.
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