(Reuters) - Southern California Edison (SCE), a unit of utility Edison International (NYSE:EIX), agreed on Friday to pay $82.5 million to settle claims with the U.S. Forest Service for costs and damages resulting from the Bobcat Fire in 2020.
The U.S. government had filed a lawsuit against SCE in 2023, alleging negligence that caused the wildfire, which burned nearly 180 square miles (466.2 square kilometers) in one of the largest wildfires in Los Angeles County.
In a complaint filed in Los Angeles federal court, the government alleged that the wildfire began on September 6, 2020, when a poorly maintained tree contacted power lines, igniting vegetation on a branch, which then fell to the ground and spread the fire.
"This record settlement against Southern California Edison provides meaningful compensation to taxpayers for the extensive costs of fighting the Bobcat Fire and for the widespread damage to public lands," said United States Attorney Bill Essayli.
According to U.S. Department of Justice, this is the largest-ever wildfire cost recovery settlement in the Central District of California.
The company has agreed to pay the settlement within 60 days of the effective date of the settlement agreement, which was May 14, without admitting wrongdoing or fault, the U.S. attorney’s office in Los Angeles said.
"We are pleased to have resolved this matter, and will continue to advance wildfire mitigation measures to further enhance public safety and resiliency," said SCE spokesperson Diane Castro.
The company submitted a three-year wildfire mitigation plan to California’s Office of Energy Infrastructure Safety last week.