The Proposal for the SCE Compensation Program Has Been Released

SCE has proposed a direct compensation program for Eaton Fire victims, offering substantial payouts despite not admitting responsibility. Under the draft plan, a family who lost a 1,500-square-foot home could receive $900,000 to rebuild, plus $200,000 for settling directly with Edison, and additional compensation for pain and suffering. Families of deceased victims could receive up to $1.5 million for noneconomic damages, $500,000 per dependent, and a $5 million direct settlement bonus. The program aims to avoid years of litigation, though attorneys warn such funds often pay less than lawsuits. Payments would be reduced by insurance settlements, with “fast pay” in 90 days or standard processing within nine months. If ultimately found liable, Edison would recover most costs from the state’s $21-billion wildfire fund, though critics say the program is designed to limit payouts. (Read the LA Times article here.)

However, in the footnote of SCE’s Wildfire Recovery Compensation Program the proposal states that eligibility requires non-burn damage to structures within the fire perimeter from smoke, soot, or ash infiltration. “Non-burn damage” is defined as measurable physical harm—such as staining, corrosion, pitting, or material degradation—as opposed to surface-level dust or particulate matter that could be cleaned through standard methods [pages 2-3].

It is unclear whether homes with contaminant damage will qualify if there is no visible harm. By excluding contamination that can persist long after wildfire debris is removed, SCE’s plan appears to leave out many standing homes impacted by toxic smoke, ash, soot, and char. If so, underinsured or uninsured residents with lingering odors or contamination who do not have the ability to collect from insurance may not be able to collect from SCE’s payout program either, leaving litigation as their only option. Learn more here.