Three Oregon lawmakers are taking aim at utility companies by proposing legislation to block rate increases for those embroiled in unresolved wildfire lawsuits for over three years. The move comes as PacifiCorp, a major utility provider, faces mounting legal challenges tied to the devastating 2020 wildfires.
Targeting PacifiCorp Over Wildfire Damages
Republican state Representatives Jami Cate, Virgle Osborne, and Ed Diehl announced their legislative plan in response to a recent federal lawsuit against PacifiCorp and a 9.8% rate hike approved by the Oregon Public Utility Commission.
The federal lawsuit accuses PacifiCorp of negligence in maintaining power lines that allegedly sparked the Archie Creek Fire in Douglas County in September 2020. The fire scorched over 200 square miles, including significant portions of federal land. The U.S. government seeks to recover substantial damages from the utility company.
“It is unfortunate the U.S. government decided to file a lawsuit in federal district court,” PacifiCorp stated. “However, PacifiCorp will continue to work with the U.S. government to find a reasonable resolution of this matter.”
Escalating Costs for Consumers
The Oregon Public Utility Commission recently approved a nearly 10% rate hike for PacifiCorp’s residential customers, effective January. Once implemented, PacifiCorp’s rates will have increased nearly 50% since 2021, largely driven by wildfire-related costs.
Consumer advocates, including the Oregon Citizens’ Utility Board, argue that customers should not bear the financial burden of a company facing allegations of negligence.
Legislative Action on the Horizon
The proposed bill, set to be introduced in January’s legislative session, aims to hold utility companies accountable for their role in wildfire damage and protect consumers from excessive rate hikes.
“The federal government is doing the right thing by filing this lawsuit, and we stand firmly behind it,” said Representative Osborne, co-chief sponsor of the bill. “PacifiCorp needs to pay up and take responsibility for the destruction they’ve caused, and putting a stop to rate hikes is the best way to achieve it.”
A History of Legal and Financial Fallout
PacifiCorp faces billions of dollars in potential liabilities tied to the 2020 wildfires, among the worst natural disasters in Oregon’s history. The fires killed nine people and destroyed thousands of homes.
The utility company has already settled two major lawsuits over the Archie Creek Fire, including a $299 million agreement with 463 plaintiffs and a $250 million settlement with commercial timber companies.
In June 2023, an Oregon jury found PacifiCorp negligent for failing to shut off power to its 600,000 customers despite warnings from fire officials. The jury awarded punitive and compensatory damages to a class of up to 2,500 property owners. Subsequent juries have imposed tens of millions of dollars in additional damages.
