In a significant move, PacifiCorp, a utility under the wing of Warren Buffett’s Berkshire Hathaway, announced on Monday a $178 million settlement to address claims from 403 plaintiffs linked to two devastating Oregon wildfires in 2020.
This settlement brings PacifiCorp’s resolution efforts to nearly 1,500 claims from the Labor Day weekend fires affecting Oregon and Northern California. Specifically, the latest settlement addresses damages from the Beachie Creek and Echo Mountain Complex fires in northwestern Oregon.
PacifiCorp noted that the “vast majority” of plaintiffs chose to settle individually, steering clear of a broader class-action lawsuit demanding at least $30 billion—an amount the utility deems excessive. Nonetheless, PacifiCorp remains committed to settling “all reasonable claims,” having already disbursed over $900 million to wildfire victims. The company had projected losses of $2.4 billion as of March 31, attributed largely to its failure to shut down power lines during a windstorm.
Ryan Flynn, president of PacifiCorp’s Pacific Power unit, expressed hope that these settlements would offer “some closure” to the plaintiffs. George McCoy, representing the plaintiffs from the law firm Warren Allen, emphasized that the settlement provides “meaningful compensation” to aid victims in rebuilding and recovering from the traumatic events.
As part of the larger Berkshire Hathaway Energy group, which is 92% owned by Berkshire Hathaway, PacifiCorp’s settlements reflect Buffett’s acknowledgment of past oversight. In his annual letter to shareholders, Buffett admitted to underestimating the financial risks associated with wildfires. Greg Abel, Buffett’s likely successor as CEO, reaffirmed at Berkshire’s annual meeting the company’s stance on contesting “unfounded” wildfire litigation and called for legislative and regulatory reforms to support utilities in managing such risks.
