PG&E submits multi-party proposal for California wildfires

FILE PHOTO: A PG&E truck carrying an American Flag drives past PG&E repair trucks in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage

(Reuters) - PG&E Corp PCG.N said on Tuesday it submitted a multi-party settlement agreement related to the 2017 and 2018 wildfires in Northern California to the California Public Utilities Commission (CPUC).

The proposal prohibits the energy utility from seeking $1.625 billion in wildfire-related costs from customers.

The settlement also proposes that PG&E pay $50 million for shareholder-funded system enhancements, specifically on the company’s electric transmission and distribution system.

PG&E’s stock jumped about 4% to $11.34, after the closing bell.

The settlement agreement with wildfire victims forms the cornerstone of PG&E’s plan to exit bankruptcy. The company sought bankruptcy protection from creditors in January following thousands of legal claims from at least 22 fires.

Reporting by Rishika Chatterjee in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips