Berkshire Hathaway Utility Pays $575M for Western Wildfire Damage

A utility company owned by Warren Buffett's Berkshire Hathaway has agreed to pay $575 million to settle federal claims over six major wildfires. The fires burned nearly 290,000 acres of government land in Oregon and California, allegedly caused by the company's power lines.

A major utility company under Warren Buffett’s Berkshire Hathaway umbrella has reached a massive settlement with federal authorities over devastating wildfires that scorched hundreds of thousands of acres across the West Coast.

PacifiCorp will pay $575 million to resolve government damage claims stemming from six major wildfires that destroyed nearly 290,000 acres of federal property in Oregon and California, the Department of Justice announced Friday.

Federal officials alleged the utility’s power lines were responsible for igniting the blazes through negligent operations.

The most destructive fires occurred during the Labor Day holiday weekend in 2020, when five separate blazes – named Archie Creek, Echo Mountain Complex, Slater, South Obenchain and 242 – consumed roughly 250,000 acres of government land. A sixth fire called McKinney started in July 2022, burning an additional 39,000 acres.

The substantial financial settlement will reimburse taxpayers for emergency firefighting expenses and fund restoration efforts by the Forest Service and Bureau of Land Management on damaged federal property.

Principal Deputy Assistant Attorney General Adam Gustafson described the agreement as one that “ensures fair compensation to the American taxpayer” while “strikes a balance by addressing the government’s significant fire-suppression costs and loss of natural resources without preventing PacifiCorp from offering electricity at fair prices.”

Despite agreeing to the settlement terms, PacifiCorp has not admitted any wrongdoing or legal responsibility, according to Justice Department officials. Company representatives did not respond to media inquiries about the agreement.

The settlement comes just days after PacifiCorp announced plans to sell a significant portion of its Washington state operations to Portland General Electric for $1.9 billion, a move designed to strengthen the company’s financial position as it faces ongoing wildfire-related lawsuits.