A string of wildfires that tore through Oregon and Northern California has now produced a $575 million reckoning.
PacifiCorp, the Portland-based utility owned by Berkshire Hathaway, has agreed to pay the U.S. government to settle claims that its electrical lines ignited six major fires that scorched vast stretches of federal land. The payment closes a lawsuit brought by the United States Department of Justice, which accused the company of negligence in maintaining and operating its power infrastructure.
Five of the fires erupted during the chaotic Labor Day weekend of September 2020—among them the Archie Creek Fire, the Echo Mountain Complex Fire, the Slater Fire, the South Obenchain Fire, and the Two Four Two Fire. Together, they devoured roughly 250,000 acres of federal terrain. A sixth blaze, the McKinney Fire, ignited in July 2022 and burned another 39,000 acres.
The government had sought more than $900 million to cover firefighting costs and environmental damage. The settlement lands lower—but still substantial. Officials say the funds will support suppression expenses and help agencies like the Forest Service and Bureau of Land Management rehabilitate blackened landscapes.
PacifiCorp, for its part, did not concede fault. Instead, it framed the payout as a step toward financial stability and customer certainty. The utility has already committed over $2.2 billion toward wildfire-related claims, and the federal agreement adds another heavy line item to that ledger.
The broader financial strain remains formidable. The company has disclosed potential wildfire liabilities totaling tens of billions of dollars, largely stemming from private lawsuits filed by homeowners and businesses. Many of those cases argue that the utility failed to de-energize power lines during extreme wind conditions in 2020.
Liquidity pressures have pushed PacifiCorp into asset reshuffling. Earlier this month, it agreed to sell a significant portion of its Washington state operations to Portland General Electric for $1.9 billion, a move aimed at strengthening its balance sheet.
Meanwhile, litigation continues on multiple fronts. The utility is challenging the certification of a sweeping class action in Oregon courts, seeking to limit exposure—particularly claims tied to emotional distress damages. That appeal remains pending.
PacifiCorp was acquired in 2006 for $5.1 billion by Berkshire, the Omaha-based conglomerate long steered by Warren Buffett. The fires may be in the past, but the financial aftershocks are still rippling through the utility’s books—and the courts.
