California utility faces $550M in penalties for 5 wildfires

SAN FRANCISCO (AP) — California regulators approved a settlement Thursday placing more than half a billion dollars in fines and penalties on the utility Southern California Edison for its role in five wildfires in 2017 and 2018.

The penalties relate to the Thomas, Woolsey, Rye, Meyers and Liberty fires. The Thomas fire, which burned in Ventura and Santa Barbara counties, is the eighth largest fire in California history, burning more than 439 square miles (1,137 square kilometers), according to state fire officials. Meanwhile, the Woolsey Fire that also tore through Ventura County ranks as the eighth most destructive fire in state history, destroying more than 1,600 structures.

Investigations found utility equipment sparked the fires.

Southern California Edison reached the settlement with the California Public Utilities Commission's safety and enforcement division; it was then approved by the five-member commission.

The utility's shareholders will pay a $110 million penalty to the state's general fund and put $65 million toward safety measures, according to the settlement. It also bars the utility from tapping ratepayers to cover $125 million in claims related to insurance for the Thomas Fire and $250 million for the Woolsey Fire.

California has seen increasingly destructive wildfires in recent years, made worse by climate change and drought. Utility equipment has been blamed for sparking some the state’s worst fires.

The CPUC's safety and enforcement division found the utility violated state safety regulations that govern design, construction and maintenance of overhead electrical lines and communication facilities. State regulators used a relatively new process to reach the agreement with the utility, bypassing a more formal investigation process. It resolves all...