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PORTLAND, Ore. (AP) — In a significant development, PacifiCorp has consented to a $575 million settlement to address federal claims regarding damages from six wildfires that swept through Oregon and California in 2020 and 2022. This settlement, announced by federal officials on Friday, marks the latest in a series of substantial payouts by the utility company related to these devastating fires.
The agreement addresses allegations by the federal government that PacifiCorp’s electrical infrastructure negligently ignited four fires in Oregon in 2020 and two additional fires in California during 2020 and 2022. According to the Justice Department, the settlement funds will aid in the restoration of approximately 290,000 acres (117,359 hectares) of scorched public land. Additionally, it will reimburse the government for firefighting costs, a critical measure given that the U.S. Forest Service now allocates over half of its budget to wildfire suppression annually.
U.S. Attorney Eric Grant from the Eastern District of California emphasized the importance of this settlement, stating it aligns with the Department’s enduring policy of holding both individuals and corporations accountable for wildfire-related damages. “Every fire affecting federal lands, regardless of its scale, is a priority,” he noted in a press release.
In a statement, PacifiCorp expressed that the settlement reflects its unwavering commitment to resolving claims associated with the wildfires. The company has already settled claims amounting to over $2 billion.
PacifiCorp has been embroiled in numerous legal battles concerning the 2020 fires in Oregon. In several trials within the state, juries have rendered verdicts requiring the utility to pay substantial sums—amounting to hundreds of millions of dollars—to those affected by the blazes.
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 it acted negligently and willfully and should have to pay punitive and other damages — a decision that applied to a class of property owners. More than a thousand class members have cases set for trial in 2026 and 2027.
PacifiCorp’s appeal of the case is still making its way through state court.
The 2020 Labor Day weekend fires were among the worst natural disasters in Oregon’s history. They killed 11 people, burned more than a million acres (404,686 hectares) and destroyed thousands of homes.
In California, the 2020 Slater Fire and 2022 McKinney Fire also claimed several lives.
Earlier this week, PacifiCorp announced that it will sell its wind, natural gas generation and distribution assets and infrastructure in the state of Washington to Portland General Electric Company for $1.9 billion to help stabilize its finances. Even though it is appealing wildfire judgments against it, PacifiCorp has had to post bonds with the court, which has put a crunch on its cash flow.
Darin Carroll, PacifiCorp’s CEO, said Tuesday the move would “improve the company’s financial stability while simplifying our operations” and help ensure reliable service for customers in Washington.
The utility’s parent company, Warren Buffett’s Berkshire Hathaway, is sitting on more than $382 billion cash, but the conglomerate expects PacifiCorp to take care if its own obligations. The executive who led Berkshire’s utility unit for years, Greg Abel, is now Berkshire’s CEO.
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