PacifiCorp has agreed to pay $575 million to resolve the federal government’s claims for damages stemming from six wildfires in Oregon and California in 2020 and 2022, federal officials announced Friday. The settlement concludes allegations that PacifiCorp’s electrical lines negligently started four fires in Oregon in 2020 and two fires in California.
The agreement is the latest major payout for the utility over wildfire liability, bringing PacifiCorp’s total wildfire settlements to over $2 billion. It underscores the mounting financial exposure utilities face for fire-related negligence as the U.S. Forest Service spends more than half its annual budget on wildfire suppression.
Settlement scope and federal enforcement
The settlement addresses six wildfires that burned 290,000 acres of public land across Oregon and California between 2020 and 2022, specifically four fires in Oregon during 2020 and two in California in 2020 and 2022.
U.S. Attorney Eric Grant of the Eastern District of California said in a statement that the settlement “served the Department’s longstanding policy of holding individuals and corporations responsible for damages caused by wildfires. Every fire impacting federal lands, no matter the size, is a priority.”
The proceeds will help restore burned public lands and reimburse the federal government for wildfire suppression costs. The U.S. Forest Service now spends more than half its annual budget fighting wildfires.
Escalating legal exposure through settlements and trials
The settlement represents the latest in a series of major payouts. PacifiCorp has so far resolved claims totaling over $2 billion related to wildfires.
In 2023, an Oregon jury found PacifiCorp liable for negligently failing to cut power to its 600,000 customers despite warnings from top fire officials. The jury determined that the utility acted with both negligence and willfulness. More than a thousand class members have additional cases scheduled for trial in 2026 and 2027.
The 2020 Labor Day weekend fires were among Oregon’s worst natural disasters, killing 11 people, burning more than a million acres and destroying thousands of homes. In California, the 2020 Slater Fire and 2022 McKinney Fire also claimed several lives.
Asset sale and parent company constraints
The settlement announcement comes as PacifiCorp faces mounting cash-flow pressure from court-ordered bond requirements related to wildfire judgments. The utility announced it will sell its wind, natural gas generation and distribution assets and infrastructure in Washington to Portland General Electric Company for $1.9 billion.
PacifiCorp CEO Darin Carroll said the asset sale would “improve the company’s financial stability while simplifying our operations” and help ensure reliable service for customers in Washington.
Berkshire Hathaway, the conglomerate owned by Warren Buffett that controls PacifiCorp, holds more than $382 billion in cash. However, Berkshire expects PacifiCorp to manage its own financial obligations. Greg Abel, who previously led Berkshire’s utility division, is now the conglomerate’s chief executive.
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