The U.S. Department of Justice (DOJ) announced Feb. 20 that it has reached a $575 million settlement with PacifiCorp over claims that the utility’s electrical lines negligently sparked six wildfires in Oregon and California.
According to the DOJ, the agreement resolves allegations that PacifiCorp’s equipment caused the fires. The company continues to deny liability.
Settlement funds will reimburse the federal government for firefighting costs and support restoration efforts on approximately 290,000 acres of burned public land. The money will be distributed to the U.S. Forest Service and the Bureau of Land Management.
Fires Covered Under the Settlement
California:
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Slater Fire (Sept. 8, 2020) — Burned 157,229 acres of federal land
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McKinney Fire (July 29, 2022) — Burned 39,000 acres of federal land
Oregon (September 2020):
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242 Fire — Burned 8,916 acres
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Archie Creek Fire — Burned 67,000 acres
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Echo Mountain Complex Fire — Burned about 2,500 acres
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South Obenchain Fire — Burned 14,780 acres
Principal Deputy Assistant Attorney General Adam Gustafson of the DOJ’s Environment and Natural Resources Division said the settlement ensures “fair compensation to the American taxpayer” while balancing the need to maintain affordable electricity.
Company Response
In a separate statement, PacifiCorp said the settlement resolves all known federal government damage claims related to the 2020 Labor Day and 2022 McKinney wildfires.
Ryan Flynn, president of Pacific Power — a PacifiCorp unit — called the agreement “another significant milestone” in resolving wildfire-related claims. Excluding claims from the Beachie Creek/Santiam Canyon fire, the company says it has settled nearly 90 percent of known claims totaling more than $2.2 billion.
PacifiCorp said it continues to invest in wildfire mitigation and prevention efforts.
Rising Federal Firefighting Costs
Federal wildfire suppression costs have risen sharply in recent years. According to the National Interagency Fire Center, federal agencies spent more than $3.16 billion on firefighting in 2023, compared with $1.74 billion in 2013. The 10-year average annual cost is $2.52 billion.
Insurance Legislation in California
Separately, California state Sen. Sasha Renée Pérez introduced the Insurance Coverage for Fire-Safe Homes Act (SB 1076) on Feb. 18.
The proposed law would require insurers to write and renew policies for homes that meet wildfire hardening and defensible space standards set by the state insurance commissioner.
Pérez said the bill is aimed at ensuring wildfire survivors who rebuild to high safety standards are not denied insurance coverage.
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