Sempra Energy to Settle with Wildfire Insurers for $900 Million

By Evan Mix

Published on May 09, 2009

In 2007, a series of wildfires swept through San Diego County and other areas of southern California, causing well over $1 billion in losses and destroying 1,500 homes. Subsequent investigations determined that some of the fires were caused by malfunctioning power lines under the control of regional utility company San Diego Gas & Electric (SDG&E), a subsidiary of Sempra Energy.

Sempra announced that it was nearing a settlement worth a reported $900 million with a group of insurance companies who sued to recover money paid to affected homeowners. The company holds an insurance policy worth $1.1 billion, which will cover the settlement that represents the bulk of the company's liability in the case. The settlement leaves $200 million for any remaining claims.

Cable and Internet service provider Cox Communications faces similar litigation because one of the fires was caused by a Cox-owned lashing wire on an SDG&E pole. Both companies are also facing litigation from individual homeowners, injury victims, and government agencies.

Comment on this article →