“We’re going to do right by our customers,” PG&E chief operating officer Sumeet Singh said at a press conference on Monday afternoon when asked about the claims process. The firm plans to “connect with impacted customers” through its website and customer service team, he added. “We’re going to make this process as simple and responsive as possible.”
Here’s what we know about how to seek compensation from the company.
What might be covered?
PG&E can avoid paying out claims when problems are caused by earthquakes or weather, including wind, rain, or extreme heat, but it’s generally responsible for losses that occur due to its own negligence. Details are scarce about the substation fire that was a major cause of the blackout, but it appears the situation is firmly in the “PG&E’s fault” category.
PG&E says (opens in new tab) that it will accept claims for food spoilage, lost wages, business losses, property damage, and personal injury; for example, if you were forced to go to the hospital because you couldn’t operate a medical device due to the power outage.
As far as food goes, PG&E’s standard is that refrigerated items will stay cold up to four hours after losing power if the door remains closed, while a half-stocked freezer will keep food frozen for one day and a fully stocked freezer will last two days. So if you lost power for only a few hours Saturday, your claim is likely to be rejected.
The utility giant announced late Monday that it would offer a $200 credit for residential customers and $2500 for commercial customers as a “Customer Satisfaction Adjustment” on their next PG&E bill. The credit is separate from the claims process.
“We recognize the significant impact this outage had on our customers, and we are committed to providing immediate and meaningful support,” said Senior Vice President and Chief Customer Officer Vincent Davis in a press release. “The credits are one way we are working to restore trust and ensure our customers receive the assistance they deserve.”
If I lost power, will I be sent money automatically?
Maybe. PG&E has 10 “service guarantees” (opens in new tab) that stipulate what it owes customers when service is interrupted. For every 24 hours a customer is without power, PG&E will credit their account $30, and that credit should appear on the bill within two months, the utility says. (The automatic payment is separate from any claim a customer can make about lost food or wages.)
However, PG&E says the credit will not apply “if the outage is absolutely beyond our control.” It’s not hard to imagine the company trying to wiggle its way out of this one, as more details about the outage surface.
The utility also has a separate “Safety Net” program (opens in new tab) that automatically sends credits to residential customers if they lose power for 48 hours or longer during a storm. However, since it was a fire, not weather, that caused this blackout, the automatic payment wouldn’t apply.
How do I file a claim with PG&E?
Here’s the link (opens in new tab) for filing an online claim. You can also download and print this form (opens in new tab) to mail in your claim.
As part of the process, PG&E will ask for supporting documents. For example, if you’re looking to get paid for spoiled food, you’ll need to include an itemized list of what went bad, with receipts and pictures.
If you couldn’t work because of the outage, you’ll need to submit the amount of time off, your employer’s verification, and payroll stubs. Businesses that lost money must submit tax records, bank statements, and documents like sales receipts and revenue and expense statements.
What’s my timeline for submitting a claim?
“It is always best to submit a claim as soon as possible,” the company says, though each claim type has a different timeline for filing and resolution.
Food spoilage claims and personal inconvenience claims (like if you had to eat a meal out because your food went bad) must be made and resolved within one year. Personal injury claims generally have a two-year time frame, as do business interruption or economic loss.
However, it’s recommended to take photos and organize receipts and other records immediately, so that you don’t lose anything that could make it more difficult to file a claim down the line.
How long does it usually take PG&E to approve or deny a claim?
The utility says it aims (opens in new tab) to evaluate claims within 30 days of receiving them. However, it adds that if an issue is complex or requires additional information, the process could take longer.
During its press conference, PG&E said it is making plans to move faster than usual.
“We’re committing to an expedited process,” Singh said. “We’re working through those details at the very moment.”
If PG&E denies your claim, it must send a letter explaining its reasoning. “If you are not satisfied with our decision and explanation, you have the right to file a court action, including a small claims action,” the company says. “The small claims court hears matters not exceeding $7,500. The small claims process does not involve attorneys.”
What about insurance?
If you want funds quickly, you could also consider filing a claim with your renters or homeowners insurance company, which might be able to reimburse you faster. (In this case, your insurer will likely seek its own reimbursement from PG&E.) However, filing an insurance claim can cause premiums to increase, so it’s worth weighing that into your decision-making.
Moreover, coverage is not guaranteed; in California, Lemonade (opens in new tab)covers (opens in new tab) up to $500 for spoiled food, while AllState said its business insurance policies cover spoiled food (opens in new tab) related to power outages (opens in new tab) and up to $500 for individuals.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.