Berkshire’s Pacificorp Agrees to $575M Settlement for Wildfire Claims in Oregon and California

PacifiCorp, a utility company owned by Berkshire Hathaway, has agreed to a substantial settlement of $575 million to address U.S. government claims related to six significant wildfires in Oregon and California. These fires devastated nearly 290,000 acres of federal land, as announced by the U.S. Department of Justice on Friday.

This settlement resolves allegations that PacifiCorp’s electrical lines were negligently responsible for igniting the fires. The fires in question include five that erupted during the Labor Day weekend in 2020—Archie Creek, Echo Mountain Complex, Slater, South Obenchain, and 242—burning approximately 250,000 acres of federal land. The sixth fire, known as McKinney, ignited in July 2022 and consumed an additional 39,000 acres.

PacifiCorp’s financial contribution will assist in reimbursing the government for firefighting expenses and will facilitate the restoration efforts by the Forest Service and Bureau of Land Management for the affected areas.

Principal Deputy Assistant Attorney General Adam Gustafson stated that the settlement “ensures fair compensation to the American taxpayer” while “striking a balance by addressing the government’s significant fire-suppression costs and loss of natural resources without preventing PacifiCorp from offering electricity at fair prices.”

Related: Buffett Utility Reaches Oregon Wildfire Deal With Nearly 1,500 Victims

Despite agreeing to the settlement, PacifiCorp has denied any liability, according to the Justice Department. The utility has not yet responded to requests for further comment.

This announcement comes just three days after PacifiCorp revealed plans to sell many of its assets in Washington state to Portland General Electric for $1.9 billion. This move aims to enhance liquidity as the company navigates ongoing wildfire litigation.

Related: Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power

(Reporting by Stempel in New York; Additional reporting by Costas Pitas and Ismail Shakil; Editing by David Ljunggren and Deepa Babington)

Topics
Catastrophe
Natural Disasters
California
Claims
Wildfire
Oregon

PacifiCorp, a utility company owned by Berkshire Hathaway, has agreed to a substantial settlement of $575 million to address U.S. government claims related to six significant wildfires in Oregon and California. These fires devastated nearly 290,000 acres of federal land, as announced by the U.S. Department of Justice on Friday.

This settlement resolves allegations that PacifiCorp’s electrical lines were negligently responsible for igniting the fires. The fires in question include five that erupted during the Labor Day weekend in 2020—Archie Creek, Echo Mountain Complex, Slater, South Obenchain, and 242—burning approximately 250,000 acres of federal land. The sixth fire, known as McKinney, ignited in July 2022 and consumed an additional 39,000 acres.

PacifiCorp’s financial contribution will assist in reimbursing the government for firefighting expenses and will facilitate the restoration efforts by the Forest Service and Bureau of Land Management for the affected areas.

Principal Deputy Assistant Attorney General Adam Gustafson stated that the settlement “ensures fair compensation to the American taxpayer” while “striking a balance by addressing the government’s significant fire-suppression costs and loss of natural resources without preventing PacifiCorp from offering electricity at fair prices.”

Related: Buffett Utility Reaches Oregon Wildfire Deal With Nearly 1,500 Victims

Despite agreeing to the settlement, PacifiCorp has denied any liability, according to the Justice Department. The utility has not yet responded to requests for further comment.

This announcement comes just three days after PacifiCorp revealed plans to sell many of its assets in Washington state to Portland General Electric for $1.9 billion. This move aims to enhance liquidity as the company navigates ongoing wildfire litigation.

Related: Utilities’ Extreme Plan to Stop Wildfires: Shut Off the Power

(Reporting by Stempel in New York; Additional reporting by Costas Pitas and Ismail Shakil; Editing by David Ljunggren and Deepa Babington)

Topics
Catastrophe
Natural Disasters
California
Claims
Wildfire
Oregon