Skip to content
CapRadio

CapRadio

listen live donate
listen live donate
listen live
donate
  • News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
    News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
  • Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
    Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
  • Podcasts & Shows
  • Schedules
  • Events
  • Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
    Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
  • About
  • Close Menu
 We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

State Lawmakers to Attorney General: Probe PG&E Fire Victim Trust

Friday, May 28, 2021 | Sacramento, CA
Lily Jamali/KQED

A survivor of the 2018 Camp Fire attends a demonstration in Paradise, California on May 22, 2021 to protest high overhead expenditures by the PG&E Fire Victim Trust

Lily Jamali/KQED

Lily Jamali | KQED

A bipartisan group of state lawmakers has asked for California Attorney General Rob Bonta to probe the spending and administration of the PG&E Fire Victim Trust.

The request comes after a KQED investigation into overhead costs of the Trust, which was established as part of a December 2019 bankruptcy settlement between the utility and nearly 70,000 victims of fires caused by PG&E equipment.

The investigation found the Trust spent nearly 90% of outgoing funds on overhead last year, while the vast majority of fire victims waited for help.

“We urge you to use the full authority of your office to review the fund’s recent expenditures and the fund’s administrators,” said the letter, which was signed by 11 state senators and assemblymembers who represent areas impacted by PG&E fires between 2015 and 2018.

“We hear every week from residents who've been waiting two years for settlement payments that they are due. Their lives are on hold until they receive these dollars,” said state Sen. Mike McGuire, D-Healdsburg, whose district includes parts of Sonoma County.

 “It's unacceptable. It's egregious and it has to change, and it's why we're calling on the trustee to expedite payments to fire survivors in Northern California,” he added. 

State Assemblymember James Gallagher, a Republican who represents the fire-ravaged town of Paradise, first announced last week on KQED Forum that he and colleagues were preparing a letter calling for more transparency. KQED's investigation "raises a lot of questions and concerns that need answers," Gallagher said. Others who signed on include state Sen. Bill Dodd, D-Napa, Assemblymember Cecilia Aguiar-Curry, D-Winters, and state Sen. Jim Nielsen, R-Tehama, all of whom have constituents harmed by fires caused by PG&E’s equipment and are waiting for compensation.

KQED found the Fire Victim Trust racked up $51 million in overhead last year, while $7 million was distributed to fire victims during that period. The investigation was based on an analysis of federal bankruptcy court filings, court transcripts and correspondence between the Fire Victim Trust and fire victims. The largest share of overhead expenses, $16.3 million, went to claims processor fees and expenses, and $12.7 million went to start-up costs. Another $6.8 million went to a line item described as  “insurance, data, and other expenses” — nearly as much as went to the fire victims themselves.

“This is outrageous,” the lawmakers wrote to Bonta, “especially in light of the fact that thousands of fire victims are struggling to rebuild their lives.”

Page 1 of Special Victims Trust AG Letter - Legislature - 5.21.2021
Page 1 of Special Victims Trust AG Letter - Legislature - 5.21.2021
Contributed to DocumentCloud by Aaron Glantz (California Reporting Project) • View document or read text

In response to an inquiry from KQED, Bonta’s office said the attorney general would not comment — even to confirm or deny — a potential investigation.

Members of Congress have also expressed outrage at the pace of payments to fire victims. In separate emails, Rep. Mike Thompson, a D-St. Helena, and Rep. Doug LaMalfa, R-Richvale, both called for faster payouts.

The pace of payments has picked up in recent weeks. According to the most recent data available, the Trust had distributed $255.4 million as of May 19. Still, just 565 of nearly 70,000 people have had their claims processed and paid, the data shows. While the Trust collects its fees in full, those families are getting 30% of what they are owed. That’s partly a result of the terms of PG&E’s settlement agreement with fire victims. The company is funding the Trust, half with cash and half with PG&E stock. Today, the Fire Victim Trust holds almost a quarter of PG&E shares.

One court filing showed the Fire Victim Trust’s Trustee, retired California Appeals Court Justice John Trotter, charged the Fire Victim Trust $1,500 an hour. In a video released last week, he said he is now on a salary of $150,000 a month. All overhead costs come from funds set aside for fire victims.

Courtesy KQED

 

The Trust did not offer comment for this story, and has declined all of KQED’s interview requests over the last month.

In his video message, Trotter acknowledged the frustration of fire victims even as he predicted more delays.

"We're still walking uphill on this,” Trotter said. “We're not near the top yet. We're making progress. We're getting there. When we get to the top and down the other side, it will go much more quickly."

Fire victims say that’s not enough. 

Earlier this month, retired police chief Kirk Trostle wrote to U.S. Bankruptcy Judge Dennis Montali asking for more transparency from the Trust.

"Families are still living in cars, travel trailers and FEMA trailers," wrote Trostle, who lost his home in Paradise in 2018, in a letter that cited KQED's reporting.

Last weekend, about 100 Camp Fire survivors staged a rally in Paradise to register their frustration, saying survivors have the right to know exactly where all of the Trust’s administrative dollars are going. 

“I thought that I was healing,” said Teri Lindsay, whose daughter, Erika, wiped back tears as she watched. “Until that report came out — it changed my life and took me back to the day. I did not realize how well they’re being paid and we’re living in squalor still.”


Follow us for more stories like this

CapRadio provides a trusted source of news because of you.  As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.

Donate Today  

 wildfires

Sign up for ReCap and never miss the top stories

Delivered to your inbox every Friday.

 

Check out a sample ReCap newsletter.

Thanks for subscribing!

Thank you for signing up for the ReCap newsletter! We'll send you an email each Friday with the top stories from CapRadio.

Browse all newsletters

More Stories

Julie Leopo/EdSource

California is preparing more credentialed teachers, but is it enough?

March 24, 2023

AP Photo/Allen Breed, File

Bill to extend time to investigate scams against older Californians advances

March 28, 2023

Janelle Salanga / CapRadio

Trans Day of Visibility celebrations come to the Sacramento region this weekend

March 30, 2023

Most Viewed

A plumber crawled under a house in Los Angeles to do a job and then went missing

State may scale down its new home loan program designed to assist first-time homebuyers

California coronavirus updates: Counties with universities saw population increases after students returned from pandemic closures

California coronavirus updates: The FDA may soon authorize another round of boosters for some individuals

10 new California laws that go into effect in 2023

We Get Support From:
Become a Supporter

Most Viewed

A plumber crawled under a house in Los Angeles to do a job and then went missing

State may scale down its new home loan program designed to assist first-time homebuyers

California coronavirus updates: Counties with universities saw population increases after students returned from pandemic closures

California coronavirus updates: The FDA may soon authorize another round of boosters for some individuals

10 new California laws that go into effect in 2023

Back to Top

  • CapRadio

    7055 Folsom Boulevard
    Sacramento, CA 95826-2625

    •  
      (916) 278-8900
    •  
      (877) 480-5900
    •  Contact / Feedback
    •  Submit a Tip / Story Idea
  • About

    • Mission / Vision / Core Values
    • Stations & Coverage Map
    • Careers & Internships
    • Staff Directory
    • Board of Directors
    • Press
  • Listening Options

    • Mobile Apps
    • Smart Speakers
    • Podcasts & Shows
    • On-Air Schedules
    • Daily Playlist
    • Signal Status
  • Connect

    •  Facebook
    •  Twitter
    •  Instagram
    •  YouTube
  • Donate

  • Listen Live

  • Newsletters

CapRadio stations are licensed to California State University, Sacramento. © 2023, Capital Public Radio. All Rights Reserved. Privacy Policy | Website Feedback FCC Public Files: KXJZ KKTO KUOP KQNC KXPR KXSR KXJS. For assistance accessing our public files, please call 916-278-8900 or email us.