PacifiCorp Appeals $1B Verdicts, Seeks Liability Caps After $2.2B Settlements
PacifiCorp reached $2.2B in wildfire settlements but faces about $55B in claims and saw its credit rating slide to one notch above junk. The Berkshire utility is appealing more than $1B in jury awards for 145 plaintiffs and lobbying states to cap liabilities and shift costs to customers.
1. Financial Exposure and Settlements
PacifiCorp has secured $2.2B in settlements to date but faces about $55B in wildfire-related claims that have pressured its S&P rating to one notch above junk. This massive exposure threatens the utility's equity base of $11B and underscores escalating fire risks in the West.
2. Litigation and Appeals
Juries have awarded over $1B to roughly 145 plaintiffs for equipment-caused wildfires, with average non-economic damages exceeding $5M per victim. PacifiCorp is appealing these verdicts, arguing that separate cases should not be consolidated, and a three-judge panel is reviewing the appeal.
3. Legislative and Regulatory Push
The utility is lobbying in multiple states for legislation that would cap wildfire liabilities and allow recovery of fire-related losses through customer rates. PacifiCorp aims to replicate California’s model of predefined liability thresholds and state wildfire insurance funds to stabilize its finances.