PacifiCorp has agreed to pay $575 million to settle federal claims tied to six major wildfires in Oregon and California in 2020 and 2022, federal officials announced Friday.
According to the U.S. Department of Justice, the settlement resolves allegations that the utility’s electrical lines negligently sparked four Oregon fires in 2020 and two California fires in 2020 and 2022. The company has not admitted liability.
The funds will help restore roughly 290,000 acres of burned public land and reimburse the federal government for wildfire suppression costs. The DOJ noted that the U.S. Forest Service now spends more than half of its annual budget on wildfire suppression.
“This settlement served the Department’s longstanding policy of holding individuals and corporations responsible for damages caused by wildfires,” said U.S. Attorney Eric Grant of the Eastern District of California.
Oregon Verdicts and Ongoing Appeals
PacifiCorp has faced multiple lawsuits over the 2020 Labor Day fires in Oregon, among the state’s worst natural disasters. The fires killed 11 people, burned more than 1 million acres and destroyed thousands of homes.
In 2023, an Oregon jury found PacifiCorp liable for negligently failing to shut off power to approximately 600,000 customers despite warnings from fire officials. Jurors determined the company acted negligently and willfully, awarding punitive and other damages to a class of property owners. More than 1,000 additional class member cases are scheduled for trial in 2026 and 2027.
PacifiCorp’s appeal of that verdict is ongoing in state court.
California Fires
The settlement also covers the 2020 Slater Fire and the 2022 McKinney Fire in California, both of which burned large swaths of federal land and caused fatalities.
PacifiCorp said it has now settled claims totaling more than $2 billion related to the fires and described the agreement as part of its ongoing effort to resolve wildfire-related liabilities.
Financial Moves
Earlier this week, PacifiCorp announced plans to sell its wind and natural gas generation and distribution assets in Washington state to Portland General Electric for $1.9 billion, a move aimed at stabilizing its finances.
PacifiCorp is owned by Berkshire Hathaway, led by CEO Greg Abel, who previously oversaw Berkshire’s utility division. Despite Berkshire’s substantial cash reserves, PacifiCorp is expected to manage its own wildfire-related obligations.
The asset sale is intended to improve financial stability and ensure reliable service for customers, company officials said.
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