Pacific Power Responsible for Wildfire Damages, Not Customers
Posted on June 15, 2023 by Bob Jenks
Tags, Energy, General Interest
This week’s court decision found Pacific Power liable for damages related to the 2020 Labor Day fires. The jury looked at the evidence and found that Pacific Power’s conduct was reckless. These are troubling findings for Oregon’s second-largest electric utility.
We rely on utilities to provide a vital, necessary service. We trust Pacific Power to provide our homes and businesses with heat, cooling, lighting, refrigeration, and communications. Electric utilities are necessary for living in the modern world. They are necessary to support our communities.
Pacific Power Found Responsible for Damage Caused by 2020 Wildfires
The jury found that Pacific Power’s gross negligence was responsible for damage caused by four wildfires. Their negligence destroyed homes and heirlooms, upended lives, and left Oregon communities traumatized. Rather than supporting our communities, the utility was found to have willfully harmed communities. As a utility watchdog, CUB finds this deeply concerning.
We allow utilities to place high-voltage transmission lines through our towns, farms, and forests. But we expect them to operate these lines safely. That did not happen. Instead, 2900 properties were destroyed and thousands of Oregon families suffered significant losses.
Pacific Power Owes Money, Not Customers
Pacific Power’s potential liability is huge. The jury awarded $72 million to 17 people and an additional $18 million in punitive damages. There are many more who are awaiting their day in court. Undoubtedly, Pacific Power will appeal. But the potential liability it faces is more than $1 billion. CUB will work hard to ensure that the financial responsibility is on the utility, not customers.
CUB will work hard to ensure that the accountability is on the utility, not customers.
This liability needs to fall on the utility, not its customers. Customer rates are supposed to allow the utility to recover its costs of prudently operating its assets and providing service. Acting in a manner that is grossly negligent and reckless is not acting prudently.
In addition, if the utility was allowed to pass these costs onto its customers, it would penalize its customers, not the utility itself. This would interfere with the Court’s attempt to hold the utility accountable.
Pacific Power Must Do More to Protect from Wildfires
This verdict demonstrates that Pacific Power was not doing enough to protect communities. As climate changes, so does the likelihood of wildfires in the Western US. CUB will continue to hold utilities accountable for enacting plans to prevent wildfires.
There has already been improvement since 2020. After the Labor Day fires, the legislature passed a law requiring utilities to develop annual Wildfire Mitigation Plans. The Public Utility Commission reviews those plans. The second plan has just been approved and requires Oregon utilities to invest in hardening their grids and preparing communities.
Read More: Wildfire Mitigation Plans for Oregon Electric Utilities (CUB Blog)
In addition, we will likely see more power shut-offs as a way to prevent wildfires. We have seen annual Public Safety Power Shut Offs in California when the conditions increase the risk of wildfires. And we will see more of them in Oregon. Customers and communities in fire-prone parts of the state need to prepare for a day or two without power when dry, windy weather conditions hit.
Read More: Preparing for Wildfire Season and Power Outages (CUB Blog)
While CUB will make sure that the court damages are not passed on to customers, we still may see bills increasing for wildfire mitigation projects. Part of 2022’s Pacific Power rate increases was the cost of wildfire mitigation. There will be additional costs in the future as utilities spend money to prevent wildfires. CUB will continue to advocate for Oregon households and ensure we are only paying for necessary costs that provide protection to our communities.
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07/13/23 | 0 Comments | Pacific Power Responsible for Wildfire Damages, Not Customers