Southern California Edison on Monday disclosed the contours of a $1.5 billion compensation plan for people and businesses harmed by the Eaton Fire, unveiling a mix of immediate interim payments, capped property awards and an independent claims process intended to expedite relief while containing the utility’s financial exposure.

Under the proposal, filed with the California Public Utilities Commission and summarized in a statement to CBS News, SCE said displaced residents would be eligible for expedited interim payments of up to $10,000 within two weeks of filing, while household property-loss claims would be subject to a base cap of $500,000. Business-interruption claims would be evaluated with a vintage-income approach, offering up to 18 months of lost earnings where documentation supports the loss. The plan would establish an independent settlement administrator, overseen by a retired state judge, to vet claims and arbitrate disputes.

“We recognize the devastation caused by the Eaton Fire and are committed to providing swift and fair compensation,” SCE said in its statement, adding that the package draws on insurance proceeds, existing reserves and planned financing. The utility also said it would seek recovery through insurance and regulatory mechanisms, signaling it may pursue partial reimbursement via future rate cases before the CPUC.

The immediate human need is stark. CBS News reported that the Eaton Fire forced widespread evacuations and destroyed multiple homes; SCE’s plan is intended both to accelerate cash to victims and to limit protracted litigation. Victims’ attorneys welcomed the interim-payment provision but criticized the caps. “This helps in the short term but does not compensate many victims for full, long-term losses,” said an attorney representing a group of homeowners affected by the blaze.

Investors reacted quickly. Shares of Edison International, SCE’s parent company, fell roughly 4 percent in Monday trading, erasing about $1.8 billion in market value, according to intraday price movements. Analysts said the plan reduces immediate uncertainty but does not eliminate the risk of additional liabilities or regulatory penalties. “The company is buying time and goodwill with interim payments, but the full financial and reputational fallout will depend on CPUC determinations and any findings of negligence,” said an industry analyst.

The proposal arrives against a backdrop of mounting wildfire-related liabilities for California’s investor-owned utilities. Utilities in the state have absorbed billions in damage costs and settlement obligations over the past decade, prompting utilities to invest heavily in grid hardening, vegetation management and public safety power shutoffs. That strategy, while aimed at reducing future fire risk, adds maintenance and capital costs that utilities generally seek to recover through rate increases — a politically fraught process that ultimately affects nearly all California electric customers.

Regulators have 30 days, under procedural rules, to respond to the filing and could require modifications. Consumer advocates and local officials urged the CPUC to scrutinize the adequacy of caps and the independence of the settlement process. Meanwhile, insurers and bond markets will be watching for how much of SCE’s plan is borne by shareholders versus passed on to ratepayers, and what that implies for utility credit costs and broader energy-sector investment.

For residents coping with loss, the practical measure is speed. The interim payments aim to provide immediate relief, but the long tail of rebuilding, litigation and policy change means both families and markets may be reckoning with the Eaton Fire for years to come.