Southern California Edison Announces Community Input Workshops on Wildfire Recovery Compensation Program for Eaton Fire
Sessions offered to gather feedback from impacted community members and stakeholders on details of the program, launching this fall.
Southern California Edison today announced a series of community workshops for its upcoming Wildfire Recovery Compensation Program, a voluntary, comprehensive claims program designed to provide direct payments and fast resolutions to eligible individuals and businesses impacted by the Eaton Fire. These sessions provide an opportunity for interested parties to comment on the draft details, such as eligibility and valuation criteria, before the program is finalized and launched this fall.
SCE consulted with Kenneth R. Feinberg and Camille S. Biros — leaders in compensation fund design and administration — on the program design, as announced on July 23. Their work includes establishing successful claims programs following the Sept. 11 terrorist attacks, the Deepwater Horizon oil rig explosion in the Gulf of Mexico, the General Motors Ignition Switch Compensation Program, and OneFund Boston following the Boston Marathon bombings on Patriots' Day in 2015.
"The resilience of community members continues to inspire us, yet it's difficult to witness the challenges they face," said Pedro J. Pizarro, president and CEO of Edison International, the parent company of SCE. "SCE's program is designed to help them focus on their recovery, and our efforts remain on supporting the community. While the investigation continues, inviting input on draft details is the next step in helping the community rebuild faster and stronger."
"This proposed draft wildfire fund provides an efficient, cost-effective and certain resolution of claims arising out of the Eaton Fire," said Feinberg. "Speed in processing claims is essential."
"The proposed fund is designed as an alternative to conventional litigation in the courtroom," added Biros. "The terms and conditions are completely transparent and voluntary. No claimants or their lawyers are required to participate until and unless they are satisfied with the compensation offer."
Two in-person and two virtual sessions have been scheduled through September. During these workshops, participants will have a fair opportunity to ask questions and comment on the draft program details. Registration information is available at sce.com/directclaimsupdates for these scheduled sessions:
- Thursday, Sept. 25, 7:00 p.m. (virtual)
- Friday, Sept. 26, 9:00 a.m. (virtual)
- Saturday, Sept. 27, 10:00 a.m., Loma Alta Park Gymnasium (3330 Lincoln Ave., Altadena)
- Monday, Sept. 29, 7:00 p.m., Loma Alta Park Gymnasium (3330 Lincoln Ave., Altadena)
Following the September community input workshops, SCE will finalize details and launch the full program later this fall. "I am grateful for the ongoing engagement with community members," added Pizarro. "Their input remains key in shaping Edison's efforts to best support our community."
About the Program
The draft details of the Wildfire Recovery Compensation Program are outlined in the Protocol, including two options for claimants to submit a claim and receive an offer: a Fast Pay option (offers within 90 days) and a second option for a more detailed review (offers within nine months).
To determine valuations for property losses in the Fast Pay option, SCE engaged experienced wildfire economists at Compass Lexecon to assess pre- and post-fire property values. Compass Lexecon's model, which relies on publicly available information, is being independently reviewed by RAND, a highly regarded nonprofit, nonpartisan research organization headquartered in Santa Monica. RAND will publish a public report of its review and evaluation.
Eligible individuals, property owners, tenants and businesses impacted by the Eaton Fire will be able to submit damage claims for economic losses, including but not limited to property damage, personal property loss, business disruption, physical injury or death. Damages for noneconomic loss, such as emotional distress, will also be included in most calculations. Insurance companies and public entities are not eligible to participate in the program. Claim documentation requirements will include, among others, proof of residency, tenancy, ownership, insurance information or hospitalization records, depending upon the nature of the claim.
In addition, SCE will add a Direct Claim Premium to each claimant's offer. This premium is only available through the Wildfire Recovery Compensation Program. For example, resident homeowners who lost their homes in the Eaton Fire will receive an additional $200,000 per property on top of any economic and noneconomic compensation.
Guiding Principles
The Wildfire Recovery Compensation Program is guided by the following principles:
- Voluntary and Optional. There are no fees or added costs. No individual claimant is required to accept the amount offered. Only when an offer is accepted does a claimant sign a settlement agreement, which includes the promise not to litigate further.
- Fair and Prompt Compensation. Through a Fast Pay option, claimants will receive a settlement offer within 90 days of a complete submission. Payments will be made within approximately 30 days of SCE receiving a settlement agreement signed and notarized by all required signatories.
- Streamlined Application and Evaluation. Those impacted will be able to submit claims and supporting documentation at a secure, dedicated website. SCE will strive to make compensation offers in an expedited manner that avoids the delay, expense and uncertainty of litigation.
- Legal Representation Optional. The streamlined application and documentation requirements allow for participation without legal counsel. If claimants choose to be represented by counsel, their attorney must submit the claim on their behalf and facilitate all program communications. SCE will add 10% to the net damages portion of an offer (not including the Direct Claims Premium) to help address legal costs if a claimant is represented by counsel at the time they submit a claim.
More information can be found on the Wildfire Recovery Compensation Program webpage.
About Southern California Edison
An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation's largest electric utilities, serving a population of approximately 15 million via 5 million customer accounts in a 50,000-square-mile service area within Central, Coastal and Southern California.
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Media Relations: (626) 302-2255
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Investor Relations: Sam Ramraj, (626) 302-2540
Feinberg/Biros: Amy Weiss, (202) 203-0448
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