$21 Billion Eaton Wildfire Fund At Risk If Utility Company Found Responsible For Wildfire

In the six months since the Eaton wildfire ravaged through Altadena, California, many are searching for answers regarding who is responsible for the blaze that resulted in multiple fatalities and thousands being displaced from their homes.

MORE: Altadena Rebuild Center Set To Open In Latest Wildfire Recovery Effort

Now, the massive $21 billion Eaton wildfire fund could be in jeopardy of being depleted if utility company Southern California Edison (SCE), which serves 15 million residents in the area, is found to have been liable for the wildfire following the results of an ongoing investigation.

On Thursday, July 24, the California Catastrophe Response Council, the nine-member organization that includes current state Gov. Gavin Newsom, met to discuss the dozens of insurance claims related to the Eaton fire and how the Eaton wildfire fund that was created to shield utility companies could be in danger of being exhausted for settlements and other litigation.

Members of the council are concerned that if SCE is declared responsible, the company “would have no financial incentive to be cost-conscious when settling claims.”

Many of the current lawsuits center on SCE’s old power lines, which are not being used, yet were responsible for sparking the Eaton fire that devastated the Altadena community — a community that is still struggling to recover from that fateful day in January.

In a statement to Realtor.com, SCE spokesperson Kathleen Dunleavy explained that the investigation could take anywhere from 12 to 18 months. 

“In terms of the fund assets, a healthy, sustainable wildfire fund is essential to help the people recover and rebuild,” Dunleavy said, adding that the fund “should go to those directly affected by the wildfire.” 

Per Realtor.com, an update on the status of the investigation will be provided during the next meeting of the California Catastrophe Response Council.

SEE ALSO:

Real Estate Developers Are Buying Altadena’s Burned Lots As Residents Face Harsh Financial Realities Of Rebuilding

Evidence Of Human Error Grows In Altadena Fire Evacuation Investigation