Additional Piece: The Growing Risk of Wildfires for Energy Companies in the West
The recent decision by an Oregon jury to hold power utility PacifiCorp liable for the devastating Labor Day weekend fires in 2020 has significant implications for energy companies in the West. As the risk of forest fires increases due to escalating climate change, difficult state and federal forest management, and population growth at the wildland-urban interface, energy companies are facing mounting pressure to take responsibility and implement measures to prevent future disasters.
Pacific Gas & Electric, for example, declared bankruptcy and pleaded guilty to 84 counts of manslaughter after neglected gear caused a fire in the Sierra Nevada foothills in 2018 that destroyed nearly 19,000 homes, businesses, and other structures and essentially leveled the city of Paradise, California. Similarly, PacifiCorp now faces the possibility of paying billions of dollars in damages to property owners affected by the Labor Day fires, with the plaintiffs’ attorneys calling the decision historic and paving the way for potentially billions more in damages for class members.
However, the systemic issues contributing to the growing risk of wildfires are bigger than any single utility company, as PacifiCorp notes in its statement following the ruling. The challenge of balancing the competing demands of providing affordable, reliable electricity to customers, ensuring public safety, and mitigating climate change impacts requires regional and national collaboration, innovation, and investment.
According to the National Interagency Fire Center, the 2021 wildfire season is expected to be above average for much of the West, including the Pacific Northwest. As more people move into high-risk areas and climate change exacerbates natural hazards, energy companies must fundamentally shift their approach to wildfire risk management to reduce negative impacts on communities, the environment, and the economy.
One way to do this is to prioritize proactive approaches that prevent the ignition of fires in the first place. This includes using more underground and covered electrical infrastructure, improving vegetation management around power lines, and implementing advanced weather monitoring and detection systems.
Another approach is to enhance response and recovery efforts to minimize the extent and severity of fires when they do occur. This includes investing in fire suppression and containment techniques, ensuring timely and accurate communication with affected communities, and providing adequate resources and support for those impacted by disasters.
Furthermore, energy companies must be transparent and accountable in their decision-making and communication with stakeholders about wildfire risk and mitigation measures. This includes engaging with regulators, policymakers, environmental groups, and residents to understand concerns and address them in a collaborative and timely manner.
Ultimately, reducing the risk of wildfires for energy companies in the West requires a multidisciplinary, integrated approach that recognizes the complex and dynamic nature of the problem. By working together and investing in innovative solutions, we can create a safer, more resilient future for all.
Summary:
An Oregon jury has held power utility PacifiCorp responsible for the cause of devastating Labor Day weekend fires in 2020, ordering the company to pay tens of millions of dollars to 17 homeowners who had sued and holding it liable for additional damages that could push total damages into the billions. The Portland utility is one of several owned by Warren Buffett’s Berkshire Hathaway. Property owners allege PacifiCorp negligently failed to shut off power to its 600,000 customers during a storm, despite warnings from the then-governor’s chief of staff and senior firefighters, and that their power lines were in charge of multiple flames. No official cause has been identified for the Labor Day fires, which killed nine people, burned more than 1,875 square miles in Oregon, and destroyed over 5,000 homes and buildings. Energy companies in the West are facing mounting pressure to take responsibility and implement measures to prevent future disasters.
—————————————————-
table {
width: 100%;
border-collapse: collapse;
}
th, td {
padding: 10px;
text-align: left;
border-bottom: 1px solid #006699;
}
th {
background-color: #006699;
color: #FCB900;
}
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
A jury in Oregon on Monday found power utility PacifiCorp responsible for the cause devastating Labor Day weekend fires in 2020ordering the company to pay tens of millions of dollars to 17 homeowners who had sued and holding it liable for additional damages that could push total damages into the billions.
The Portland utility is one of several owned by a billionaire Warren Buffett’s Omaha, Nebraska-based investment group Berkshire Hathaway. The property owners, who are suing on behalf of a group of thousands others, allege PacifiCorp negligently failed to shut off power to its 600,000 customers during a storm, despite warnings from the then-governor. Kate Brown’s chief of staff and senior firefighters, and that their power lines were in charge multiple flames.
No official cause has been identified for the Labor Day fires, which killed nine people, burned more than 1,875 square miles (4,856 square kilometers) in Oregon, and destroyed over 5,000 homes and buildings. The fires combined were one of the worst natural disasters in Oregon’s history.
In a written statement, the plaintiffs’ attorneys called the decision historic and said it “paves the way for potentially billions of dollars more in damages for class members.”
PacifiCorp immediately stated that it would appeal.
“Escalating climate change, difficult state and federal forest management, and population growth at the wildland-urban interface are significant factors contributing to the growing risk of wildfires,” PacifiCorp said in an emailed statement following the ruling. “These systemic issues affect all Oregonians and are bigger than any single utility company.”
The Multnomah County Circuit Court jury awarded more than $73 million to 17 homeowners who sued PacifiCorp a month after the fires. Each received between $3 million and $5.5 million for damage to their property and emotional distress.
The jury also applied its liability finding to a larger group, including the owners of nearly 2,500 properties damaged by the fires, which could push the cost of damages well into the billions. This damage will be determined later.
The jury heard testimony Monday afternoon as to whether PacifiCorp should pay punitive damages. Nick Rosinia, an attorney for the plaintiffs, told the jury to award punitive damages equal to five times what they had already been awarded for damage caused by PacifiCorp.
“For their reckless and outrageous actions on Labor Day, it’s the only way they really get your message,” Rosinia said.
Doug Dixon, an attorney for the utility, insisted that no punitive damages were warranted. The company continues to work on safety and has not acted recklessly, he said. And while attorneys for the property owners say PacifiCorp is solvent, the company owes $9 billion in debt.
Among those on trial over the verdict was Rachelle McMaster, whose home in the town of Otis, near the Oregon coast, was destroyed in the fires. Wearing a tie-dye T-shirt that read “Keep Earth awesome,” she wiped her eyes and squeezed her spouse’s hand after it was read.
The seven-week trial ended last Wednesday with closing arguments. Oregon Public Radio reported.
The plaintiffs alleged that PacifiCorp acted negligently when it failed to shut down its power lines despite extreme wind warnings over the holiday weekend.
“You don’t really have an answer to any of this,” plaintiffs’ attorney Cody Berne said during closing arguments. “(PacifiCorp) started the fires. You destroyed the evidence. And now they have come before you, demanding not to be held accountable.”
The jury was to determine PacifiCorp’s responsibility for four of those fires: the Santiam Canyon fires east of Salem; the Echo Mountain Complex near Lincoln City; the South Obenchain fire near Eagle Point; and the Two Four Two fire near the southwest Oregon town of Chiloquin.
Attorneys for the plaintiffs said that utility executives left the power on even though the company’s line workers took calls about damaged electrical equipment. The same executives, the lawyers said, did not take responsibility in the process, saying it is front-line workers who decide on the power cut, the news agency reported.
In his closing argument, Dixon said that “alleged power line fires” in Santiam Canyon, where more than half of the classmates live, could not have spread to the plaintiffs’ homes. Also, PacifiCorp does not have equipment in some areas where they have been accused of damage, he said.
The risk of forest fires is increasing for energy companies in the West. Pacific Gas & Electric declared bankruptcy and pleaded guilty to 84 counts of manslaughter after his neglected gear caused a fire in the Sierra Nevada foothills in 2018 that destroyed nearly 19,000 homes, businesses and other structures and virtually leveled the city of Paradise, California.
https://fortune.com/2023/06/13/warren-buffett-berkshire-hathaway-pacificorp-jury-lawsuit-billions-devastating-oregon-wildfires/
—————————————————-