Southern California Edison has expanded its compensation program for victims of the Eaton Fire, following feedback from residents. The utility nearly doubled the number of smoke-damaged properties eligible for claims and increased compensation for children to $75,000. However, victims must waive legal claims against Edison to receive payments, a requirement that has drawn criticism from state officials and survivors.
The Eaton Fire, which occurred in January, killed 19 people and destroyed 9,400 homes in Altadena. Although official fire investigators have not released their findings, Edison has acknowledged that its equipment likely sparked the blaze. Videos showed the fire igniting under a century-old transmission line that Edison had not used since 1971. Edison has stated that “absent additional evidence,” it is likely that its equipment was involved in the ignition.
Edison’s compensation program covers various losses, including property damage, business interruption, and physical injuries. Despite these efforts, some survivors and officials, such as state Senator Sasha Renée Pérez, argue that the compensation falls short. They have expressed concerns about the requirement for victims to waive their legal rights and have called for immediate housing assistance.
The utility expects to be reimbursed by a $21-billion state wildfire fund, created in 2019 to protect utilities from bankruptcy. However, the fund administrators anticipate Eaton fire claims to reach tens of billions of dollars. Governor Gavin Newsom recently signed a bill to bolster the fund by an additional $18 billion for future wildfires.
Edison claims its program is designed to help the community recover faster, but some survivors, like Joy Chen of the Eaton Fire Survivors Network, argue that the compensation amounts are insufficient. Chen noted that Edison deducts a homeowner’s full insurance coverage from the compensation, even if the insurer has only partially reimbursed the family.
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