PG&E Trades Higher After Judge Approves $13.5B Settlement

PG&E Corporation PCG shares are trading higher on Wednesday after a U.S. bankruptcy judge approved the company's $13.5 billion settlement with California wildfire victims.

The company says it has been working toward a comprehensive settlement agreement involving several parties since August, holding frequent discussions with all parties.

The settlement agreement was reached in collaboration with the CPUC's Safety Enforcement Division, the Coalition of California Utility Employees, the Office of the Safety Advocate, and the Public Advocates Office.

PG&E will also pay $50 million for shareholder-funded system enhancements, specifically on the company's electric transmission and distribution system.

PG&E cannot seek customer rate recovery associated with certain wildfire-related costs in the amount of $1.625 billion.

Related: PG&E Stock Falls After California Governor Rejects Proposed Restructuring Plan

"We remain deeply sorry about the role our equipment had in tragic wildfires in recent years, and we apologize to all those affected. None of us wants to see another catastrophic wildfire in the communities we call home. This settlement agreement underscores our commitment to learning from the past and doing what's right for safety in the future," said Bill Johnson, CEO of PG&E.

PG&E announced late Monday it amended its restructuring plan to advance its $13.5-billion settlement with wildfire victims — despite California Gov. Gavin Newsom's view that the plan is noncompliant with state law. PG&E removed a clause from the proposal that required Newsom’s approval.

PG&E shares were up 14.57% at $12.50 in Wednesday’s pre-market session. The stock has a 52-week high of $25.19 and a 52-week low of $3.55.