Core Points - Southern California Edison (SCE) has reached a settlement to recover approximately $2 billion of the $5.6 billion in losses from the 2017-2018 wildfire and mudslide events [1] - The settlement includes $1.6 billion in uninsured claims and $400 million in legal costs incurred as of May 31, 2023 [1] - The costs are primarily associated with the Woolsey fire of 2018, which burned 96,949 acres, destroyed 1,643 structures, and resulted in three fatalities [1] Recovery Details - SCE is authorized to recover 35% of losses incurred after May 31, 2025, along with $71 million or 85% of restoration costs [3] - The agreements are subject to approval by the California Public Utilities Commission [3] - SCE anticipates receiving the proceeds by the end of 2026, leading to a total recovery of 43% of the costs related to the 2017-2018 wildfire and mudslide events when combined with pre-approved recoveries from the TKM events [3] Legal Context - Last year, SCE sought to recover $1.6 billion in losses from the Thomas and Koenigstein fires and the Montecito Mudslides, collectively referred to as TKM [2] - The utility has faced multiple lawsuits alleging that its electrical equipment was responsible for major wildfires in California, including the Eaton fire earlier this year [2]