PORTLAND, Ore. — A trio of Oregon lawmakers has announced their intention to introduce legislation aimed at preventing utility companies from increasing rates if they are entangled in wildfire-related lawsuits for a duration of three years or more. This initiative is focused on ensuring that PacifiCorp, which is currently facing numerous lawsuits linked to the devastating wildfires that occurred in the state in 2020, remains accountable for its actions.
Republican Representatives Jami Cate, Virgle Osborne, and Ed Diehl shared details of their proposed bill in a statement released on Monday. This announcement follows a recent approval of a rate increase for PacifiCorp’s customers, as well as the federal government initiating a lawsuit against the electric utility firm.
The federal lawsuit was filed last week in relation to the Archie Creek Fire, which began in Douglas County, Oregon in September 2020. This fire spread across more than 200 square miles (approximately 520 square kilometers), with a significant portion of the affected area designated as federal land. The government’s complaint alleges that PacifiCorp acted negligently by failing to maintain its power lines adequately, thereby increasing the risk of wildfires. According to the lawsuit, the federal government aims to seek recovery for “substantial costs and damages.”
In response, a spokesperson for PacifiCorp stated via email that the company is in discussions with the U.S. government to address the allegations. The spokesperson expressed disappointment regarding the lawsuit’s filing in federal court but reiterated the company’s commitment to reach a fair resolution with the government.
The federal lawsuit coincided with the Oregon Public Utility Commission’s decision to permit a 9.8% increase in rates for PacifiCorp’s residential customers set to take effect next year. The company cited rising costs related to wildfire risks as a significant contributing factor to its rate increase request. Once the new rates become effective in January, research by the Oregon Citizens’ Utility Board indicates that PacifiCorp’s rates will have risen by nearly 50% since 2021.
The legislators indicated that they plan to present their bill during the upcoming legislative session, which is slated to commence in January. “The federal government is undertaking the correct action by filing this lawsuit, and we fully support it,” commented Osborne, who is expected to be a co-chief sponsor of the bill. “PacifiCorp must take accountability for the devastation it has caused, and halting rate hikes is an effective means to ensure that happens.”
PacifiCorp is likely facing billions of dollars in damages due to multiple lawsuits concerning the 2020 wildfires in Oregon. The utility has already reached two settlement agreements related to the Archie Creek Fire, including a $299 million settlement with 463 affected plaintiffs and a $250 million agreement with ten timber companies.
Earlier this year, an Oregon jury ruled that PacifiCorp was liable for failing to proactively cut power when warnings were issued by fire officials, showing negligence that affected a large number of its customers. This outcome imposed significant punitive and other damages on the utility, which now faces demands from various wildfire victims. The wildfires that broke out during the Labor Day weekend of 2020 are regarded as one of Oregon’s gravest natural disasters, claiming nine lives and destroying countless homes.
