Oregon lawmakers are taking action to stave off utility rate increases amid growing concerns over the accountability of power companies linked to devastating wildfires. A trio of Republican state representatives plans to introduce legislation aimed at preventing utility providers from raising rates if they have outstanding wildfire lawsuits for three years or more.
This bold proposal follows the recent approval of nearly 10% rate hike for customers of PacifiCorp, the parent company of Pacific Power, as well as the backdrop of multiple lawsuits the company faces stemming from the catastrophic wildfires of 2020. Representatives Jami Cate (R-Lebanon), Virgle Osborne (R-Roseburg), and Ed Diehl (R-Stayton) announced their intention to introduce the bill, offering relief to consumers who are increasingly burdened by rising utility costs.
According to the lawmakers, this legislation is aimed squarely at holding PacifiCorp accountable for its alleged negligence. The utility company is under scrutiny amid multiple lawsuits, including recent federal litigation tied to the Archie Creek Fire, which devastated Oregon’s Douglas County. The fire burned over 200 square miles, damaging vast tracts of federal land. The federal government cited negligence, claiming PacifiCorp failed to adequately maintain its power lines, which has resulted in significant damages and costs.
"The federal government is doing the right thing by filing this lawsuit, and we stand firmly behind it," said Rep. Osborne, who is set to be the future bill’s co-chief sponsor. He emphasized the importance of holding the utility accountable for its role in the fires and the destruction they caused. The repercussions of the 2020 wildfires were severe, not just for the environment but for the lives of residents across the state, many of whom are still grappling with the aftermath of the devastating events.
Just days prior to the lawmakers' announcement, PacifiCorp found itself at the center of criticism as the Oregon Public Utility Commission greenlit its request for a significant 9.8% increase for residential customers. The company attributed this hike partially to rising costs linked to wildfire risks and activities. This new increase, effective January 2024, marks nearly 50% higher rates for PacifiCorp customers since 2021, according to the Oregon Citizens' Utility Board, which advocates for utility consumers.
Representative Cate and her colleagues view the bill as not just timely, but necessary. They argue it will provide much-needed protection for consumers who are already struggling with the financial impacts of rising utility rates. "PacifiCorp needs to pay up and take responsibility for the destruction they've caused, and putting a stop to rate hikes is the best way to achieve it," said Osborne, reiteration the sentiment among the lawmakers promoting the bill.
Once hailed as the state's utility lifeline, PacifiCorp's reputation has been severely tarnished by the devastating outcomes of the wildfires, which were among the worst natural disasters recorded in Oregon history. These fires resulted in extensive loss of life and property, leaving behind frustrations and distrust toward power suppliers blamed for negligence.
The legal proceedings against PacifiCorp have already begun to yield significant financial impacts for the company. It has entered several settlement agreements related to the Archie Creek Fire, totaling nearly $549 million, covering claims from victims with personal property losses and timber interests. Despite this, the company continues to face substantial liability, with future rulings expected to plunge the utility corporation even more deeply affected.
Legal decisions so far have not been kind to PacifiCorp as evidence mounts against them. An Oregon jury found the company liable earlier this summer for failing to cut power during extreme fire threats, which not only displayed negligence but also mandated punitive liability to compensate victims of significant losses. Other juries have similarly ruled against PacifiCorp, and collectively, these decisions now suggest the company could owe hundreds of millions, if not billions, due to its alleged failures.
On the one hand, the developers of this pending legislation aspire for collective accountability and consumer protections. On the other, the challenges facing PacifiCorp highlight the complex interplay between environmental responsibility and enhancing infrastructure. Many advocates are advocating for reform across the state’s wildfire risk management policies and utility accountability measures.
Looking forward, the upcoming legislative session starting this January will serve as the meeting ground for these discussions. The proposed legislation could become one of the most impactful measures addressing utility rate settings, giving residents hope for relief from constant escalations during challenging times. The engagement from lawmakers indicates growing awareness and proactive steps being taken to address the pressing issues surrounding utility service and wildfire accountability.
Oregon's potential shift toward stricter regulation could influence how utility companies operate not only across the state but may serve as precedent for other regions grappling with similar wildfire risks. The outcome of the proposed bill, alongside the federal lawsuit's progress, will be closely monitored by advocates and utility customers alike as they seek to navigate the challenging intersection of energy needs and wildfire safety.
