California utility to pay $82 million settlement in lawsuit stemming from huge 2020 wildfire

Key Points

• Southern California Edison agreed to pay a $82.5 million settlement to the federal government over the 2020 Bobcat Fire that burned through the Angeles National Forest.
• The 2023 lawsuit by the Justice Department alleged the fire was caused when poorly maintained trees contacted power lines, leading to extensive damage, closures of over 100 miles of trails, and harm to endangered species.
• Edison will make the payment within 60 days without admitting fault, while committing to advance wildfire mitigation measures.
• This deal follows a $80 million settlement last year for the 2017 Thomas Fire, and comes amid ongoing probes and lawsuits related to other SCE-linked wildfires like the Eaton Fire.

LOS ANGELES (AP) — A California utility has agreed to pay the federal government $82.5 million stemming from an enormous 2020 wildfire that churned through mountains northeast of Los Angeles and into the Mojave Desert, officials said Friday.

The U.S. Justice Department announced the payment by Southern California Edison on Thursday. U.S. Attorney Bill Essayli said in a statement that the settlement provides "meaningful compensation to taxpayers for the extensive costs of fighting the ... fire and for the widespread damage to public lands."

Edison agreed to pay the settlement within 60 days of its effective date, May 14, without admitting wrongdoing or fault, prosecutors said.

Utility spokesperson Diane Castro said, “Our hearts are with the people who were affected by the Bobcat Fire. We are pleased to have resolved this matter and will continue to advance wildfire mitigation measures."

The settlement stemmed from a 2023 lawsuit filed by federal prosecutors on behalf of the U.S. Forest Service against Edison and Utility Tree Service to recover costs from fighting the so-called Bobcat Fire and for the extensive damage that it caused to the Angeles National Forest.

The government alleged that the fire ignited when trees that were not properly maintained by the utility and its tree maintenance contractor came into contact with power lines. Damage from the fire closed campgrounds and more than 100 miles (161 kilometers) of trails for years and harmed habitat for the federally endangered wildlife-mountain yellow-legged frog and federally threatened fish and birds, the government said.

“These resources will help us rehabilitate burned areas, restore wildlife habitats and strengthen our forests’ resilience to future wildfires,” said Deputy Forest Supervisor Tony Martinez of the Angeles National Forest.

The fire charred about 178 square miles (461 square kilometers).

Last year, the utility agreed to pay $80 million to settle claims on behalf of the U.S. Forest Service connected to a massive wildfire that destroyed more than a thousand homes and other structures in 2017.

Authorities are continuing to investigate the cause of the Eaton Fire, which destroyed at least 7,000 homes and other structures and laid waste to entire neighborhoods earlier this year. Lawsuits against SCE say the utility’s equipment sparked the blaze.