PORTLAND, Ore. — Three Oregon lawmakers are set to introduce a groundbreaking bill aimed at preventing utility rate increases when unresolved wildfire lawsuits persist for three or more years. This initiative focuses on holding PacifiCorp accountable as the company faces an array of lawsuits related to the devastating 2020 wildfires.
The proposal was revealed in a statement on Monday by Republican state Reps. Jami Cate, Virgle Osborne, and Ed Diehl, shortly after PacifiCorp customers were informed of an approved rate hike and amidst ongoing federal litigation against the utility.
Last week, the federal government filed a lawsuit against PacifiCorp concerning the Archie Creek Fire, which erupted in Douglas County, Oregon, in September 2020, ultimately consuming over 200 square miles, half of which was federal property. The lawsuit alleges negligence on the utility’s part for not adequately maintaining its power lines to prevent the fire, seeking to recover substantial costs and damages.
In response, PacifiCorp expressed its commitment to addressing the claims collaboratively with the federal government.
The timing of the federal lawsuit coincided with the Oregon Public Utility Commission’s approval of a 9.8% rate increase for PacifiCorp’s residential customers set for next year. The company attributed this increase in part to rising costs associated with wildfire risks.
Once the new rates take effect in January, PacifiCorp’s rates will have surged nearly 50% since 2021, according to the Oregon Citizens’ Utility Board, which advocates for customers.
The lawmakers intend to present their bill during the upcoming legislative session starting in January.
Osborne, poised to be a co-chief sponsor of the bill, stated, “The federal government’s lawsuit is a crucial step. PacifiCorp must take responsibility for the devastation caused, and halting rate increases is essential to achieving this.”
PacifiCorp faces potential liabilities amounting to billions in damages from ongoing lawsuits related to the 2020 wildfires.
The company has already settled two claims regarding the Archie Creek Fire, including a $299 million agreement with 463 affected plaintiffs and a $250 million settlement with ten commercial timber companies.
Additionally, a June 2023 jury found PacifiCorp liable for its negligence in not cutting power to its 600,000 customers despite dire warnings from fire officials, mandating that it provide punitive damages to a class of up to 2,500 property owners. Subsequent jury rulings have also ordered PacifiCorp to compensate other wildfire victims significantly.
The wildfires that ignited across Oregon during the Labor Day weekend in 2020 stand as one of the most catastrophic natural disasters in the state’s history, resulting in nine fatalities and the destruction of thousands of homes.
