Berkshire Hathaway’s utility company, PacifiCorp, is facing a major challenge that could affect power service for hundreds of thousands of people in Oregon. The company is involved in lawsuits tied to huge wildfires from 2020. These fires caused extensive damage, and now PacifiCorp is under the threat of billions of dollars in claims.
In a recent emergency court filing, PacifiCorp highlighted a tough situation. A judge in Portland has scheduled back-to-back jury trials—about 160 of them—over the next two and a half years. These trials involve groups of homeowners seeking millions in damages for homes and businesses destroyed in the wildfires. The company says this intense schedule makes it nearly impossible to keep up operations and puts a serious financial strain on the largest electric grid operator in the western U.S.
PacifiCorp has already paid nearly $500 million to about 90 plaintiffs after a 2023 jury found it negligent for not shutting off power lines before strong winds sparked the fires. But this is just the start. More than 1,900 other fire victims in western Oregon still need to present their damage claims in court. This case is becoming one of the largest in Oregon’s history.
The 2023 trial was groundbreaking, marking the first time a major wildfire lawsuit blamed on utility equipment reached a jury. PacifiCorp believes it will win on appeal and is now asking the state appeals court to pause more trials until the appeal is settled. This could take years. Fire victims’ lawyers, on the other hand, argue that delaying the trials would be unfair since thousands of people were left homeless and struggling after the fires.
Last month, PacifiCorp reported it has already spent over $1 billion on settlements tied to the fires. The company estimates total probable losses at about $2.7 billion as of mid-2023. Berkshire Hathaway’s chairman, Warren Buffett, warned investors earlier this year that wildfires have made utilities in the western U.S. risky investments. Utilities in other states like California and Colorado are also facing huge liabilities due to fire damage.
PacifiCorp is discussing possible solutions with Oregon regulators and lawmakers. They are exploring ways to reduce how much they could lose, including passing some costs on to customers and limiting claims for non-economic damages.
For now, the company’s future remains uncertain as it fights these legal battles, while many Oregonians wait to see if their power will stay on and how the wildfire aftermath will be resolved.