PacifiCorp, an Oregon-based utility serving 2.1 million customers across six Western states, has asked federal regulators to let it pass $1.7 billion in wildfire-related costs onto ratepayers. In an August filing, the Berkshire Hathaway Energy subsidiary urged the Federal Energy Regulatory Commission to dismiss challenges brought by several power agencies, which argued the company had not proved its costs were reasonable.
What's happening?
According to an article by Utility Dive, the company wants to include liabilities from fires in 2020 and 2022 in its transmission rates, which would increase charges by more than 30% for some customers. PacifiCorp maintains that its accounting practices were "undoubtedly correct" and that most wildfire damages were prudently managed.
Critics point out that a jury has already found the company negligent in one case — the James fire — though PacifiCorp is appealing that verdict.
Why is PacifiCorp's plan important?
The dispute highlights the growing financial burden of extreme wildfires in the West. In recent years, the U.S. has seen more wildfire incidents than at any time in the past decade, and rising global temperatures, hotter summers, and prolonged drought conditions have made power lines and other infrastructure more dangerous ignition sources.
Passing liability costs on to customers raises questions of fairness. Households already strained by rising utility bills could end up shouldering billions in damages linked to corporate negligence. At the same time, the company reported that outstanding wildfire-related claims in Oregon and California total more than $50 billion, showing the scale of financial risk tied to pollution-driven extreme weather.
What's being done about the plan?
Regulators must ultimately decide whether PacifiCorp can recover these costs from consumers. Other utilities, such as Pacific Gas and Electric and Southern California Edison, have urged FERC to continue reviewing wildlife liabilities on a case-by-case basis rather than granting blanket approval.
Consumer advocates are pressing for stricter oversight, pointing to the dangers of letting companies offload risks created by poor grid management.
For everyday people, investing in rooftop solar and battery storage can cut monthly bills and make your home more resilient during outages. Communities can band together to push regulators to demand stronger wildfire mitigation measures, such as burying power lines and expanding renewable energy sources, to help prevent these disasters from recurring.
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