California Utility Pays City $27M for Fires

The San Diego region’s electric utility has agreed to pay the city of San Diego $27 million to settle claims related to 2007 wildfires that devastated parts of the nation’s eighth-largest city.

The city attorney’s office said Tuesday that the damages cover costs for firefighting, damage to city property and loss of lease revenue. It does not affect pending claims by homeowners and businesses.

San Diego Gas & Electric Co. estimates that it has faced about $2 billion in claims related to three of the four major fires that swept the region. Many claims have already been settled.

State investigators have found the utility’s faulty power lines were at least partly responsible for fires that burned more than 300 square miles and destroyed more than 1,300 homes.