Oregon lawmakers are preparing to introduce legislation aimed at preventing utility companies from raising rates when they have unresolved wildfire lawsuits pending for three or more years. This move is largely seen as accountability for PacifiCorp, the utility company facing serious legal challenges stemming from the devastating 2020 wildfires.
On December 26, the U.S. government filed suit against PacifiCorp, citing negligence related to the Archie Creek wildfire which swept through Douglas County. This catastrophic event consumed more than 130,000 acres, leading to substantial damage and loss for many residents. The complaint asserts PacifiCorp had “knowingly and intentionally operated insufficiently maintained power lines,” and it highlights the company’s history of over 250 violations concerning vegetation clearance.
State Representatives Jami Cate, Virgle Osborne, and Ed Diehl announced their support for the new legislation on the heels of PacifiCorp’s recently approved rate increase of 9.8 percent for residential customers, effective January 1, 2025. This increase follows nearly 50 percent worth of rate hikes since 2021, raising concerns about the financial strain on residents and wildfire victims who have not yet received compensation for their losses.
Osborne expressed outrage over PacifiCorp’s failure to address its wildfire liabilities, stating, “PacifiCorp has had more than enough time to pay the costs they owe from the Archie Creek Fire, yet they’ve refused to do so. This is a slap in the face to the families who lost everything.” His sentiments reflect the broader scrutiny on the utility’s business practices and the backlash from affected communities.
The motivation behind the proposed legislation is to halt any rate increases until the wildfire claims are resolved. The lawmakers believe this measure serves not only to provide immediate relief to consumers but also to compel the utility company to take responsibility for the damage caused by its infrastructure.
Osborne reiterated support for the federal lawsuit against PacifiCorp, adding, “The federal government is doing the right thing by filing this lawsuit, and we stand firmly behind it.” This bipartisan effort is part of a larger strategy to hold utilities accountable for their negligence and prevent them from shifting costs to consumers without addressing the root causes of these disasters.
PacifiCorp has acknowledged the lawsuit and stated its intention to seek resolution with the U.S. government. A spokesperson remarked, “It is unfortunate the U.S. government decided to file a lawsuit, but PacifiCorp will continue to work with the U.S. government to find reasonable resolution of this matter.” This statement underlines the company’s acknowledgment of the situation without fully addressing the financial and social impact on affected families.
The legal troubles for PacifiCorp are compounded by prior judgments against the company. A jury found PacifiCorp liable for failing to cut power to its customers during the wildfires, which included 600,000 residents. Subsequent lawsuits have resulted in significant payouts, with settlements reaching well over $500 million—thousands of victims have filed claims, including both individuals and commercial entities affected by the flames.
The 2020 wildfires represent some of the most severe natural disasters Oregon has faced, with nine lives lost and thousands of homes destroyed. The Labor Day weekend of those fires has been characterized as one of the darkest periods for many communities, highlighting both ecological and economic devastation.
Launching this legislative measure coupled with the recent legal actions against PacifiCorp creates immediate pressure on the utility company. It compels them to reassess their operations and implementation of safety measures to potentially avoid future disasters. The lawmakers' proposed bill is scheduled to be introduced during the upcoming legislative session, showing an active commitment to wildfire accountability and consumer protection.
With the threat of increased bills looming over utility customers and wildfire victims continuing to seek compensation, the legislative initiative reflects public sentiment against perceived injustices resulting from disaster management failures. The combination of increased support for legislative watchdogs and heightened scrutiny over utility practices signals significant change may be on the horizon for Oregon’s governance of public utilities.
Moving forward, Oregonians will be watching closely, as the outcomes of both the proposed legislation and the federal lawsuit may forever alter the relationship between utility companies, their customers, and the accountability measures required to prevent such catastrophic fires from happening again.
