Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Liability shifting (spin-offs, bankruptcy, closure bonds) · United States · 2017–2025

Southern California Edison: Thomas Fire and Montecito mudslide settlements, and recovery of costs from customers

Short record: the main facts, with sources. A full case file has not been prepared.

Nature's voice · report
Damages to my Los Padres National Forest were part of a US$80 million settlement between SCE and the United States, effective 23 February 2024, which also covered Forest Service firefighting costs. The Justice Department's release does not say how much of the settlement was for damage to me.
Did nature suffer? Yes. Harm is on record.
Recorded
  • The Santa Maria Sun reported that about US$37.7 million of the US$80 million is set aside for my recovery and restoration. Santa Maria Sun
What the record lacks: 3 none on record · 3 insufficient · 1 unclear See the gaps

Southern California Edison (SCE) agreed to pay US$1.16 billion to insurance subrogation plaintiffs, announced agreements in principle with 23 public entities for US$360 million, and agreed to pay US$80 million to the US for Forest Service firefighting costs and Los Padres National Forest damages. In January 2025 the California Public Utilities Commission approved the recovery from customers of 60% of approximately US$2.7 billion of losses.

US$80 millionPayment to the US for Forest Service firefighting costs and Los Padres National Forest damages
Effective 23 February 2024. The only settlement for nature found in the sources reviewed; the Justice Department release gives no split between firefighting costs and forest damage, and the Santa Maria Sun reported about US$37.7 million set aside for the forest's recovery and restoration.

Status As of October 2026: the CPUC approved cost recovery in January 2025 and SCE issued US$1.6 billion of securitized bonds in December 2025; the US$80 million settlement took effect on 23 February 2024; no later development is in the sources reviewed.

What?
SCE agreed to pay insurance subrogation plaintiffs, public entities and the United States in connection with the Thomas Fire and the Montecito mudslide, and the CPUC allowed it to recover 60% of approximately US$2.7 billion of losses from customers. Edison International, via SEC EDGAR
Where?
Montecito, California, and Los Padres National Forest; CPUC decision for California customers. FOX LA
When?
Fires of 2017; public-entity agreements in principle 13 November 2019; subrogation settlement 22 September 2020; US$80 million settlement effective 23 February 2024; CPUC approval January 2025. Edison International, via SEC EDGAR
Who?
Gained
Lost
Harmed
Why?
Not stated in the sources reviewed.
How?
Settlements with insurance subrogation plaintiffs, public entities and the United States, then a CPUC approval allowing recovery of 60% from customers, financed through securitized bonds. Edison International, via SEC EDGAR
6 of 6 questions answered from the record

What happened

The record, in order.

Southern California Edison (SCE) made settlements in connection with the Thomas Fire and the Montecito mudslide. On 22 September 2020 it agreed to pay all insurance subrogation plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation an aggregate of US$1.16 billion, equal to US$0.555 for each dollar their policyholders had been paid in claims. On 13 November 2019 it announced agreements in principle with 23 public entities for total payments of US$360 million, of which US$150 million was allocated to the 2017 fire and 2018 debris flow events and US$210 million to the Woolsey Fire. In both cases SCE's filings state that no admission of wrongdoing or liability was made. For comparison, the California Department of Insurance put insured losses for the October and December 2017 fires at US$11.79 billion in January 2018, a figure that does not include the Montecito mudslide.

SCE agreed to pay US$80 million to the United States to resolve claims on behalf of the Forest Service over the 2017 Thomas Fire. The Justice Department said the United States had sued in 2020 to recover the costs of fighting the fire and for damages to the Los Padres National Forest; the settlement took effect on 23 February 2024, payment was due within 60 days, and SCE settled without admitting wrongdoing or fault. The Justice Department release gives no split between firefighting costs and forest damage; the Santa Maria Sun reported that about US$37.7 million would be set aside for the forest's recovery and restoration. The sources reviewed record no claim for natural-resource damage other than this settlement.

In January 2025 the California Public Utilities Commission (CPUC) approved a settlement under which SCE is authorized to recover 60%, or approximately US$1.6 billion, of approximately US$2.7 billion of losses from customers, according to Edison International's annual report to the SEC and E&E News. The losses included about US$1.3 billion of uninsured claims paid through 31 May 2024 and US$0.3 billion of legal and estimated financing costs, according to SCE's August 2024 filing. In August 2025 the CPUC authorized SCE to finance these amounts through securitized bonds, and SCE issued US$1.6 billion of securitized bonds in December 2025.

  1. 2018California Department of Insurance reports US$11.79 billion of insured losses for the October and December 2017 fires, excluding the Montecito mudslide (January)
  2. 2019SCE announces agreements in principle with 23 public entities for total payments of US$360 million: US$150 million for the 2017 fire and 2018 debris flow events, US$210 million for the Woolsey Fire (13 November)
  3. 2020SCE agrees to pay insurance subrogation plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation an aggregate of US$1.16 billion (22 September)
  4. 2024SCE settlement with the United States for US$80 million takes effect (23 February); announced by the Justice Department on 26 February
  5. 2025CPUC approves the settlement under which SCE may recover 60%, approximately US$1.6 billion, of approximately US$2.7 billion of losses from customers (January)

How it looked

What was shown, beside what was recorded.

Shown

    Recorded

    • SCE agreed on 22 September 2020 to pay all insurance subrogation plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation an aggregate of US$1.16 billion, equal to US$0.555 for each dollar their policyholders had been paid in claims, and to pay US$0.555 per dollar of claims paid to policyholders before 15 July 2023, up to a cap; "No admission of wrongdoing or liability was made in reaching the Settlement."
      Edison International, via SEC EDGAR
    • SCE announced on 13 November 2019 agreements in principle with 23 public entities for total payments of US$360 million: US$150 million allocated to the 2017 fire and 2018 debris flow events and US$210 million to the Woolsey Fire; "no admission of wrongdoing or liability was made in reaching these agreements".
      Southern California Edison (Edison International), Form 8-K exhibit
    • SCE agreed to pay the United States US$80 million to resolve claims on behalf of the US Forest Service to recoup costs and damages associated with the 2017 Thomas Fire in the Los Padres National Forest; the settlement took effect on 23 February 2024, payment was due within 60 days, and SCE settled without admitting wrongdoing or fault. In 2020 the United States had sued SCE for costs incurred fighting the fire and for damages to the Los Padres National Forest.
      US Department of Justice (US Attorney's Office, Central District of California)
    • Santa Maria Sun (2 May 2024): about US$37.7 million of the US$80 million is set aside for the Los Padres National Forest, to be allocated to recovery and restoration efforts; the Forest Service was still determining how to spend it.
      Santa Maria Sun
    • FOX LA reported the US$80 million settlement for the 2017 fire in the Los Padres National Forest.
      FOX LA
    • CPUC, January 2025 (decision cited as D.25-01-042): approved the settlement under which SCE is authorized to recover 60%, or approximately US$1.6 billion, of approximately US$2.7 billion of losses (approximately US$1.3 billion of uninsured claims paid and legal and financing costs, per SCE's August 2024 filing); in August 2025 the CPUC authorized financing through securitized bonds and SCE issued US$1.6 billion of securitized bonds in December 2025 (Edison International annual report).
      Edison International, via SEC EDGAR
    • California Department of Insurance (January 2018): US$11.79 billion of insured losses for the October and December 2017 fires; the Montecito mudslide is not included.
      California Department of Insurance
    • E&E News (31 January 2025): the CPUC "voted to allow the utility to recover from customers approximately $1.6 billion" in claim settlements tied to the 2017 Thomas Fire and the subsequent Montecito debris flows.
      E&E News by POLITICO
    • SCE's filing of 29 August 2024: losses of approximately US$2.7 billion, including about US$1.3 billion of uninsured claims paid through 31 May 2024 and US$0.3 billion of legal and estimated financing costs; SCE would recover 60%, about US$1.6 billion, and waived US$125 million of uninsured claims and related financing costs under a 2021 agreement with the CPUC's Safety and Enforcement Division.
      Edison International, via SEC EDGAR
    • Courthouse News (26 February 2024): the Justice Department sued Edison on the Forest Service's behalf, mainly for negligence, to recover firefighting costs and damage to the Los Padres National Forest; Edison did not admit liability in the settlement.
      Courthouse News Service

    Who gained

    Money that reached nature, beside money that stayed elsewhere.

    Reached nature or the ground

    Not published
    Payment to the US for Forest Service firefighting costs and Los Padres National Forest damages$80m
    Includes firefighting costs; the split is not stated.
    Set aside for Los Padres National Forest recovery and restoration (Santa Maria Sun)≈ $38m
    Part of the US$80 million; the Justice Department release gives no split.

    Gained elsewhere

    Not totalled
    Agreed to be paid by SCE to insurance subrogation plaintiffs$1.2bn
    Agreed in principle between SCE and 23 public entities$360m
    US$150 million for the Thomas Fire and Montecito; US$210 million for Woolsey.
    Losses in the settlement approved by the CPUC (approximately)≈ $2.7bn
    Recoverable from customers (60%, approximately)≈ $1.6bn
    Insured losses, October and December 2017 fires (California Department of Insurance)$11.8bn
    Does not include the Montecito mudslide.
    Currency: USD · Window: 2018-2025. All figures cover the same period. * Estimate built from cited figures.

    In court and with insurers

    Every proceeding and every insurer decision on record.

    Lawsuits and rulings

    1. 2020-09-22Settled$1.16bn agreed to be paid to insurance subrogation plaintiffs
      Settlement with insurers (subrogation)
      Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation (court not named in the 8-K) · Civil · Insurers → Southern California Edison

      On 22 September 2020 SCE agreed to pay all insurance subrogation plaintiffs in the Thomas Fire, Koenigstein Fire and Montecito Mudslides litigation an aggregate of US$1.16 billion, equal to US$0.555 for each dollar their policyholders had been paid in claims, with no admission of wrongdoing or liability. Edison International, via SEC EDGAR

    2. 2019-11-13Settled$360m total payments agreed in principle with 23 public entities
      Settlement with 23 public entities
      Not stated in the sources reviewed · Civil · 23 public entities → Southern California Edison

      On 13 November 2019 SCE announced agreements in principle with 23 public entities for total payments of US$360 million: US$150 million allocated to the 2017 fire and 2018 debris flow events and US$210 million to the Woolsey Fire, with no admission of wrongdoing or liability. Southern California Edison (Edison International), Form 8-K exhibit

    3. 2020–2024-02-23Settled$80m paid to the United States
      Settlement with the United States for Forest Service firefighting costs and Los Padres National Forest damages
      Lawsuit filed by the United States in 2020 on behalf of the US Forest Service (court not named in the release) · Civil · United States (US Forest Service) → Southern California Edison

      SCE agreed to pay US$80 million to resolve claims on behalf of the US Forest Service for costs incurred fighting the Thomas Fire and damages to the Los Padres National Forest; the settlement took effect on 23 February 2024 with payment due within 60 days, and SCE settled without admitting wrongdoing or fault. The release gives no split between the two. US Department of Justice (US Attorney's Office, Central District of California)

    4. 2025-01Outcome not on record$1.6bn recoverable from customers (60% of approximately US$2.7 billion), approximately
      CPUC approval of recovery of costs from customers (cited as decision D.25-01-042)
      California Public Utilities Commission · Regulatory · Southern California Edison (cost recovery) → Not stated in the sources reviewed

      In January 2025 the CPUC approved the settlement under which SCE is authorized to recover 60%, approximately US$1.6 billion, of approximately US$2.7 billion of losses from customers; in August 2025 it authorized financing through securitized bonds. Edison International, via SEC EDGAR

    Insurers

    No insurer decision on record.

    What we don't know

    Undisclosed, unproven, untried: recorded as data.

    Court

    • Unclear CPUC approval of recovery of costs from customers (cited as decision D.25-01-042): outcome not on record.

    Record

    • Insufficient Unconfirmed: the numbers of deaths in the Thomas Fire (2) and the Montecito mudslide (23).
    • None on record None on record: a claim for natural-resource damage other than the US$80 million payment to the Forest Service.
    • None on record Not stated: the split of the US$80 million between firefighting costs and damage to Los Padres National Forest, in the Justice Department release; the Santa Maria Sun reported that about US$37.7 million would be set aside for the forest's recovery and restoration.
    • Insufficient Unconfirmed: a best estimate of SCE's total losses of about US$6.2 billion; the Edison 8-K of 22 September 2020 gives figures for all 2017 and 2018 wildfire and mudslide events, including the Woolsey Fire, and no total for the Thomas Fire and Montecito alone.
    • Insufficient Unconfirmed: that the CPUC decision is numbered D.25-01-042 and dated 30 January 2025, that the amount recoverable is about US$1.627 billion of about US$2.712 billion, that about US$1.094 billion is permanently disallowed, and that the bonds run for 35 years.
    • None on record Not on record: whether the payments to the 23 public entities were made in the amounts announced on 13 November 2019; the announcement describes agreements in principle.

    Did the harm stop?

    Not stated in the sources reviewed.

    Who paid?

    SCE agreed to pay US$1.16 billion to insurance subrogation plaintiffs, announced agreements in principle with 23 public entities for US$360 million and agreed to pay US$80 million to the US. Under the CPUC's January 2025 approval, customers carry 60% (approximately US$1.6 billion) of approximately US$2.7 billion of losses, financed through securitized bonds.

    Sources

    Voices on record: ✓ Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society— Researchers

    Company or project

    2. SCE, Local Public Entities Settle 2017, 2018 Wildfire and Debris Flow Claims
      Southern California Edison (Edison International), Form 8-K exhibit · 2019-11-13

    Government and regulators

    2. Southern California Edison Agrees to Pay United States $80 Million to Resolve Lawsuit Stemming from 2017 Thomas Fire (Press Release 24-047)
      US Department of Justice (US Attorney's Office, Central District of California) · 2024-02-26

    Press and investigations

    Connected cases

    Related matters, and cases linked to this one through the same organisations, with the role each played in both.
    Terms used on this page

    Institutions

    SEC
    The US Securities and Exchange Commission, which regulates securities markets and what companies tell investors.

    Law and courts

    Negligence and gross negligence
    Negligence is a failure to take reasonable care. Gross negligence is a serious, reckless failure; under US oil-spill law a finding of gross negligence raises the maximum penalty.
    Similar cases
    Carbon credits · Wildfire · Insurance, liability and compensation funds · Burning: incineration, open burning, flaring, fires · United States · date not stated
    California forest carbon projects burned (Verra buffer pool)
    Same type: Wildfire, Insurance, liability and compensation fundsSame country
    Wildfire · Law, regulation and treaties · Finance, funds and markets · Burning: incineration, open burning, flaring, fires · Russia · 2015–2026
    Russia's forest-fire control zones and federal fire-service funding
    Same type: Wildfire, Law, regulation and treatiesCourt: outcome not on record
    Wildfire · Law, regulation and treaties · Burning: incineration, open burning, flaring, fires · Russia · 2019
    Siberian wildfire season of 2019: Krasnoyarsk, Irkutsk and Yakutia
    Same type: Wildfire, Law, regulation and treatiesCourt: outcome not on record
    Oil spill · Insurance, liability and compensation funds · United States · 2010–2031
    BP Deepwater Horizon: the spill, the court cases and the recovery claims
    Same type: Insurance, liability and compensation fundsSame countryCourt: settled
    Insurance, liability and compensation funds · Chemical pollution · Insurance declined or withdrawn · United States · 1929–1993
    Ventron/Morton mercury, Berry's Creek
    Same type: Insurance, liability and compensation fundsSame countryCourt: outcome not on record
    Oil spill · Pipeline · Insurance, liability and compensation funds · United States · 2015–2025
    Refugio / Plains Line 901 oil spill (California)
    Same type: Insurance, liability and compensation fundsSame countryCourt: settled