PG&E's stock is surging after the utility reached a tentative $13.5 billion settlement resolving all major claims related to Northern California wildfires of 2017 and 2018.

The fires were blamed on Pacific Gas and Electric's outdated equipment and negligence.

The utility said Friday that the deal is a key step toward its exit from Chapter 11 bankruptcy.

It still needs court approval. Shares in San Francisco-based PG&E Corp. closed Monday trading up 16%.

The stock is still down 53% for the year.

ORIGINAL STORY: 

Pacific Gas & Electric Co. (PG&E) announced a $13.5 billion settlement with individual Northern California wildfire victims on Friday.

In a statement it released on Twitter, PG&E says it has agreed to a settlement with the Official Committee of Tort Claimants (TCC) with firms representing individuals who suffered losses from 2017 Northern California wildfires and the 2018 Camp Fire.

The statement said that included claims from the 2017 Tubbs Fire, 2015 Butte Fire and the 2016 Ghost Ship Fire in Oakland.

The statement went on to say that approval of the settlement agreement would put PG&E on a sustainable path forward to emerge from Chapter 11 by the June 30, 2020 deadline to participate in the State of California's go-forward wildfire fund.

CEO and President of PG&E, Bill Johnson, released this statement below:

“From the beginning of the Chapter 11 process, getting wildfire victims fairly compensated, especially the individuals, has been our primary goal. We want to help our customers, our neighbors and our friends in those impacted areas recover and rebuild after these tragic wildfires,”
We appreciate all the hard work by many stakeholders that went into reaching this agreement. With this important milestone now accomplished, we are focused on emerging from Chapter 11 as the utility of the future that our customers and communities expect and deserve.

There have been many calls for PG&E to change in recent years. PG&E’s leadership team has heard those calls for change and we realize we need to do even more to be a different company now and in the future. We will continue to make the needed changes to re-earn the trust and respect of our customers, our stakeholders and the public. We recognize we need to deliver safe and reliable energy service every single day – and we’re determined to do just that.

Finally, we share the state’s focus on helping mitigate the risk of future wildfires and we will continue to do everything we can to help reduce those risks across our system."

To read the full statement, click on the tweet below.