To avoid a prolonged lawsuit, Southern California Edison said Wednesday that it would offer direct compensation to Eaton fire victims even if it has not yet formally admitted that its equipment ignited the fire on Jan. 7.
Edison said it plans to launch a wildfire recovery compensation program this fall that will be open to those who have lost their homes, businesses or leased properties, which killed 199 people and destroyed more than 9,400 homes and other buildings in Altadena. It will also cover those who have been harmed by smoke, physical injuries or deaths from family members.
“While the way the Eaton Fire starts is still being evaluated, SCE will still provide an accelerated process to pay and resolve claims fairly and quickly,” Pedro Pizarro, CEO of the company’s parent company Edison International, said in a press release. “This allows the community to focus more on recovery than lengthy, expensive litigation.”
The utility said it had hired consultants Kenneth R. Feinberg and Camille S. Biros, who worked on the September 11th Victims Compensation Fund, to help design the program.
Dozens of lawsuits have been filed against Edison following the January 7 fire, which captured the ignition under the transmission line in Eaton Canyon. The reason is still under investigation, but Pizarro said a leading theory is that the last idle Edison transmission line used in 1971 was somehow re-energized and started the fire.
Attorneys representing fire victims expressed suspicion of the plan, saying it could lead to a reduction in compensation for fire victims.
“In the past, utilities have proposed these plans as a means of short selling and less paid victims,” said attorney Richard Bridgeford. “Victims do better when represented by lawyers.”
Edison said the plan is to quickly compensate victims, including the insured. It says people can apply or have no lawyers. The plan is expected to continue until 2026.
“The architecture and timing of the SCE Direct claim program will help effectively manage funding resources, mitigate interest costs and minimize inflationary pressures, so funds can resolve actual claims and provide losses to community members,” Pizarro said.
If Edison is found responsible for the fire, the state’s $21 billion wildfire fund is expected to repay the company for all or most of the payments it pays to the victims. Brigford said he believes the wildfire fund is enough to cover the Eaton fire requirements.
“They try to panic people so that they don’t get enough representation,” he said.
Others are concerned about the state’s wildfire fund insufficient. Officials of the Earthquake Authority, which manages the Wildfire Fund, said in a document released before Thursday’s meeting that they are concerned about the cost of the Eton fire. You can use up the funds.
State officials plan to discuss at the meeting how to extend the life of the fund.
Edison said more information on eligibility and other details about other compensation plans will be released in the coming weeks.
