PG&E (PCG) - Get Report shares jumped on Friday after the San Francisco utility company said it agreed (n principle) on an $11 billion settlement covering 85% of the wildfire-related insurance claims in 2017 and 2018.
The shares are up 5% at $10.63 at the beginning of the session.
The settlement is subject to conditions including the approval by the court overseeing PG&E's Chapter 11 bankruptcy reorganization.
The utility's equipment had been found responsible for starting massive wildfires in the state.
This is the second major settlement that PG&E has reached regarding wildfire claims. In June, the company settled, for $1 billion, claims by local public entities regarding wildfires from 2015, 2017 and 2018.
PG&E said additional claims against the company are pending in U.S. District Court and in California state court.
The company affirmed that it was aiming to raise $14 billion of equity financing to execute the Chapter 11 reorganization. It has received commitments of $1.5 billion and said it would seek the rest of the financing over the next several weeks.