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, .
But the Oregon Public Utility Commission has rejected the request by Pacific Power鈥檚 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.
鈥淲e recognize and share PacifiCorp鈥檚 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,鈥� the order issued by the three-member commission reads. 鈥淎 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.鈥�
Both the Public Utility Commission and PacifiCorp officials suggested that it might require action from the Oregon Legislature to limit the utility鈥檚 costs.
鈥淧acifiCorp appreciates the utility commission recognizing the urgent need for public policy and regulatory solutions in this matter,鈥� a spokesman for the company said in an email.
鈥淲ildfires 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,鈥� the PacifiCorp statement said.
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