PacifiCorp to Pay $575 Million in Wildfire Settlement With U.S. Government

PacifiCorp, the Berkshire Hathaway-owned utility, has agreed to pay $575 million to settle U.S. government claims tied to six major wildfires in Oregon and California. The U.S. Department of Justice announced the agreement, resolving allegations that the utility’s electrical lines negligently sparked fires that burned nearly 290,000 acres of federal land.

Five of the wildfires—Archie Creek, Echo Mountain Complex, Slater, South Obenchain, and the 242 Fire—ignited during Labor Day weekend in September 2020. Together, they scorched roughly 250,000 acres of federally managed land. A sixth blaze, the McKinney Fire, erupted in July 2022, burning an additional 39,000 acres. Federal authorities sued PacifiCorp in December 2024, seeking more than $900 million in damages to recover wildfire suppression costs and natural resource losses.

While PacifiCorp denied liability, it agreed to the $575 million settlement as part of what company executives described as an effort to resolve outstanding wildfire claims and stabilize the utility’s financial outlook. Ryan Flynn, president of Pacific Power, said the agreement reflects the company’s commitment to addressing reasonable claims while ensuring reliable electricity service and fair pricing for customers.

The wildfire litigation has significantly strained PacifiCorp’s liquidity and credit ratings. The utility disclosed in November that it faces approximately $55 billion in total wildfire claims, largely stemming from lawsuits filed by Oregon homeowners and businesses. These private claims allege the company failed to shut off power lines during a severe windstorm in 2020, contributing to widespread destruction that damaged more than 2,000 structures and burned over 500,000 acres.

In an effort to strengthen its financial position, PacifiCorp recently agreed to sell several Washington state assets to Portland General Electric for $1.9 billion. Meanwhile, the utility is seeking to decertify a wildfire-related class action in Oregon, arguing against emotional distress damages. The court has not yet issued a ruling.

Berkshire Hathaway acquired PacifiCorp in 2006 for $5.1 billion. The utility operates under Berkshire Hathaway Energy, now led by CEO Greg Abel, who succeeded Warren Buffett earlier this year.