Edison, the power company, will compensate for the Los Angeles fire, with a maximum of $750 per square foot for single-family homes

Edison (EIX.US) CEO Pedro Pizarro stated that the company expects to begin accepting claims for compensation related to the Los Angeles fire before Thanksgiving, to compensate victims of the deadly Eaton fire that destroyed large areas of Los Angeles in January this year.

The compensation plan is expected to disburse funds by early 2026, which is faster than pursuing claims through litigation, but it may also mean that the compensation amounts are lower than those obtained through lawsuits. According to the compensation draft, homeowners who lost their single-family homes can receive compensation of $550 to $750 per square foot, depending on insurance coverage, with approximately 1,500 square foot residences receiving about $900,000 in compensation. If they choose to settle directly with Edison without mediation or litigation, they will receive an additional $200,000, plus $100,000 for each adult and $50,000 for each child as compensation for emotional distress.

Its subsidiary Southern California Edison announced the plan in July this year, and the cause of the fire is still under investigation. The company has not admitted responsibility for the fire but acknowledged that its equipment may be related to the cause of the fire