Major utility company to pay over half a billion dollars for extensive wildlife damages: 'Providing certainty for customers'

Electric power company PacifiCorp announced a $575 million settlement to resolve government claims that its negligence caused six wildfires in Oregon and California that burned over 290,000 acres of public land.

What's happening?

The Department of Justice announced the settlement in a news release. The most damaging of the fires was the Slater Fire, which burned over 157,000 acres in California in September 2020. The four Oregon fires occurred around the same time period, burning around 95,000 acres of federal land.

The government alleged that PacifiCorp was culpable for these huge wildfires. As The Oregonian noted, unlike other companies, PacifiCorp declined to shut down power in the areas of the wildfires despite the forecast of a major windstorm.

Both the government and PacifiCorp characterized the payout as fair and said it would allow the company to continue to serve its customers and the government to recoup firefighting costs and restore some of the land. 

"This agreement strikes 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," Principal Deputy Assistant Attorney General Adam Gustafson said.

Separately, PacifiCorp committed to a $1.6 billion settlement to private homeowners. It faces additional lawsuits, which are being contested in court.

"We have now settled nearly 90% of known claims for a total of more than $2.2 billion, providing certainty for customers and progress toward a financially healthy utility," PacifiCorp President Ryan Flynn said in a statement.

Why is PacifiCorp's settlement with the government important?

Wildfires are incredibly costly and damaging natural disasters. In the government's statement, it revealed that over half of the Forest Service's budget goes to wildfire suppression.

Wildfires not only destroy lives and homes and burn public lands, but they also cause severe health risks by spreading pollutants, including particulate matter. While PacifiCorp didn't admit guilt, the billions of dollars pledged to the government and residents speak loudly enough.

What's being done about the fallout from these wildfires?

The government pledged to continue to hold companies and individuals responsible for their contributions to wildfires.

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"Wildfires remain a recurring threat to our natural resources, the safety of our communities, and their economic well-being," U.S. Attorney Scott E. Bradford said. "Recouping the costs associated with these wildfires is a priority for our office, and this settlement achieves that."

Reuters reported that PacifiCorp sold assets to Portland General Electric to ease liquidity concerns.

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