Wildfire

Oregon can’t limit PacifiCorp’s 2020 wildfire payouts, state utility regulators determine

Oregon Public Broadcasting | By Courtney Sherwood

Published May 30, 2024 at 5:14 PM PDT

FILE: Photos of the fire that destroyed Bill Edge’s home in Gates during the Santiam Canyon Fire in 2020. Talking at his home on May 26, 2023, Edge says though he rebuilt, it doesn’t feel like home anymore. Edge was one of 17 plaintiffs awarded a combined $4.4 million in economic damages and $67.5 million in non-economic damages last year, in one of many lawsuits against PacifiCorp.

PacifiCorp can’t limit how much it will have to pay for wildfire damage in Oregon, under a decision Thursday by state utility regulators.

The parent company of Pacific Power has already been ordered to pay hundreds of millions of dollars for its connection to wildfires in 2020 that burned more than 2,500 properties and left at least nine people dead. The company failed to cut power to 600,000 customers during a windstorm despite warnings from Oregon fire officials. With multiple lawsuits still underway, its total liability could top more than $8 billion in Oregon and California.

That financial liability prompted Warren Buffett to tell shareholders earlier this month that Berkshire Hathaway, which owns PacifiCorp, could sell off some of its electric utilities to limit wildfire liabilities, unless states act, as E&E News reported.

But the Oregon Public Utility Commission has rejected the request by Pacific Power’s parent company to limit how much it will have to pay by excluding noneconomic damages from its penalties, even in cases of gross negligence or willful misconduct. However, commissioners acknowledged the challenges facing electric utilities in the face of heightened wildfire danger.

“We recognize and share PacifiCorp’s concerns about maintaining its financial health in the face of mounting wildfire liability. Oregonians have an interest in the solvency of their electric utilities, and unbounded wildfire verdicts can threaten that interest,” the order issued by the three-member commission reads. “A utility that cannot effectively secure financing or capital may struggle to meet growing demand, implement legislative mandates, maintain reliable service, and even make good on compensation owed to wildfire victims.”

Both the Public Utility Commission and PacifiCorp officials suggested that it might require action from the Oregon Legislature to limit the utility’s costs.

“PacifiCorp appreciates the utility commission recognizing the urgent need for public policy and regulatory solutions in this matter,” a spokesman for the company said in an email.

“Wildfires pose a catastrophic threat to communities, and require holistic solutions involving businesses, governments and other key stakeholders working together to design and implement enduring solutions for all Oregonians,” the PacifiCorp statement said.