The settlement was announced on Thursday by the PG&E Fire Victim Trust, which compensates victims of fires that the parent of Pacific Gas & Electric started between 2015 and 2018.
According to Frank Pitre, a lawyer for the trust, the settlement is among the largest of its kind, and the money will be used to pay the "vast majority" of claims held by federal agencies that assisted in fighting the fires.
PG&E did not respond immediately. Settlement payments made by corporate officers and directors are frequently insured.
The North Bay fires, also known as the Wine Country fires, erupted in Napa, Sonoma, and neighboring counties in October 2017. They killed at least 44 people, destroyed or damaged over 245,000 acres of land, and damaged or destroyed many wineries.
Thirteen months later, the upstate Camp Fire killed 85 people, burned more than 153,000 acres, and destroyed most of Paradise, California, a town that had about 26,000 people. It is still the deadliest and most destructive wildfire in the state.
According to the trust, the North Bay Fires could have been avoided if PG&E had cut power off sooner, while the Camp Fire was caused by PG&E's failure to inspect and maintain its aging equipment and infrastructure.
When PG&E emerged from Chapter 11 bankruptcy in 2020, it gave the trust the right to pursue claims against the utility's executives and directors. According to the trust, it has distributed $4.9 billion to fire victims.