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American Focus > Blog > Environment > In the West, utilities are shifting the cost of wildfires to customers
Environment

In the West, utilities are shifting the cost of wildfires to customers

Last updated: September 19, 2025 3:10 pm
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In the West, utilities are shifting the cost of wildfires to customers
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The Berkshire Hathaway Energy arm, led by CEO Warren Buffett, has been making strategic moves to protect itself from wildfire liability in various states across the West. At the annual shareholder meeting last year, Berkshire Hathaway’s vice chairman, Greg Abel, highlighted Utah as the “gold standard” for utility protection and urged other states to adopt similar legislative measures.

In Utah, laws have been passed that allow utilities to charge customers to build a fund for future fire damages and cap the amount of damages residents can seek in case of wildfires caused by utility equipment. These laws have significantly reduced costs for Berkshire Hathaway Energy, shielding the company from potentially billions in liability.

Despite the success in Utah, Berkshire Hathaway Energy faces challenges in other states where wildfires have caused significant damage. In Oregon, for example, PacifiCorp, a subsidiary of Berkshire Hathaway Energy, faced backlash after fires caused by its faulty equipment burned down thousands of homes and claimed lives. This has led to a shift in public perception and a loss of potential benefits that the company had secured in other states.

The aging infrastructure of Berkshire Hathaway Energy poses a challenge, as maintaining it is costly. Climate-proofing measures such as running power lines underground can be prohibitively expensive, and routine maintenance like managing vegetation does not provide a return on investment for utilities. This has led to criticism from consumer advocates and calls for utilities to prioritize safety and maintenance over cost-cutting measures.

In states like Wyoming and Idaho, laws have been passed to limit damages that can be awarded to victims of utility-caused fires if the company followed its wildfire plan. This has raised concerns about residents’ ability to seek compensation for damages and has sparked debates among lawmakers about balancing utility costs with accountability for safety.

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Overall, Berkshire Hathaway Energy’s efforts to mitigate wildfire liability through legislative and regulatory means have sparked controversy and raised questions about the balance between utility costs and public safety. As the company continues to navigate these challenges, stakeholders will be closely watching to see how they prioritize safety and accountability in their operations. Following a thorough investigation conducted by the Federal Energy Regulatory Commission, it was revealed that PacifiCorp, a subsidiary of Berkshire Hathaway Energy, had failed to maintain a safe distance between vegetation and power lines. This violation of safety standards was so severe that it was determined that at least 45 percent of PacifiCorp’s Bulk Electric System (BES) lines should not have had any power running through them at all.

The findings sparked public outrage, leading to class action lawsuits being filed against PacifiCorp. As a result, the company has been ordered to pay over $300 million in damages to several dozen plaintiffs. However, the fate of thousands of other claimants remains uncertain as the legal battle continues in court. It is estimated that PacifiCorp could potentially face an additional $8 billion in damages by the end of the lawsuits.

Despite the hefty financial burden placed on PacifiCorp, consumer advocacy groups like the Oregon Citizens’ Utility Board doubt that Warren Buffett, the chairman of Berkshire Hathaway, will simply settle the claims. It is speculated that the company may ultimately file for bankruptcy to avoid the massive liability.

In an effort to protect itself, PacifiCorp has been seeking similar protections in Oregon as it has in Utah. However, attempts to pass utility-friendly bills in the Oregon legislature have been met with strong opposition from lawmakers and the public. The anger towards PacifiCorp is palpable, especially among those who have suffered losses due to the company’s negligence.

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While some experts believe that offering financial support to utilities through ratepayer funds is a viable solution, the situation in California presents a different approach. The California Earthquake Authority, a government entity, oversees the distribution of wildfire funds to utilities in the state. This system allows utilities to receive financial support without passing on the costs directly to customers.

Despite the success of this program in California, concerns remain about the potential for catastrophic fires in states where liability caps are in place. With the increasing threat of wildfires in the Western United States due to climate change, experts warn that it is only a matter of time before PacifiCorp faces a similar crisis.

As Bob Jenks of the Oregon Citizens’ Utility Board emphasizes, the risk of devastating wildfires is heightened by the changing climate and the dry conditions in Western forests. Without proper forest management and preventative measures, the threat to utilities like PacifiCorp will continue to grow, putting both the company and the communities it serves at risk.

TAGGED:CostcustomersShiftingutilitiesWestwildfires
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