Oregon lawmakers have announced plans to introduce legislation aimed at halting utility rate increases amid unresolved lawsuits stemming from devastating wildfires. The proposal, put forth by Republican state representatives Jami Cate, Virgle Osborne, and Ed Diehl, seeks to bar utilities from raising rates if they have outstanding wildfire lawsuits for three years or more.
The initiative is focused on holding the utility company PacifiCorp accountable, especially as it faces multiple lawsuits linked to the catastrophic 2020 wildfires. The lawmakers emphasized the need for accountability following the recent approval of nearly 10% rate increases for PacifiCorp customers, alongside the backdrop of the federal government's lawsuit against the company.
On December 19, 2023, the federal government filed allegations against PacifiCorp, claiming negligence related to the famous Archie Creek Fire, which ignited during Oregon's Labor Day weekend wildfires. The complaints assert the company failed to properly maintain its power lines, leading to the ignition of the fires and subsequent devastation across the region. The Archie Creek Fire burned over 200 square miles, primarily affecting federal land and displacing countless residents.
"The federal government is doing the right thing by filing this lawsuit, and we stand firmly behind it," stated Rep. Osborne, who is poised to be one of the bill's chief sponsors. He emphasized the urgent need for PacifiCorp to take responsibility for the wide-reaching impacts of their negligence, noting it as the best approach to achieve accountability.
PacifiCorp has faced scrutiny not only for the fires but also for increasing its rates, which have nearly risen by 50% since 2021. According to the Oregon Citizens' Utility Board, this spike is due, in part, to rising costs linked to wildfire prevention initiatives. The new rates, set to take effect on January 1, 2024, have left many questioning the fairness of financial burdens placed on customers without corresponding accountability from the utilities.
According to Rep. Cate, "When this [rate increase] goes... Pacific Power has yet to pay anything toward its wildfire liabilities." This statement highlights the frustration lawmakers feel as they aim to establish regulatory measures to protect consumers, especially victims of the wildfires.
The local legislature's response follows significant legal challenges for PacifiCorp, which has already reached two settlement agreements over the Archie Creek Fire, totaling $549 million to compensate affected parties. This adds to the financial pressures on PacifiCorp as it navigates the aftermath of severe legal accusations stemming from its alleged negligence.
The 2020 wildfires are characterized as one of the most disastrous events to hit Oregon, leading to the deaths of nine individuals, leaving thousands of homes destroyed, and displacing entire communities. These tragic outcomes have heightened public interest and scrutiny over the conduct of utility companies and their preparedness for wildfire risks.
Rep. Diehl emphasized the need for systemic changes, stating, "Pacific Power continues to shirk their responsibility... I applaud the federal government for taking action to force financial restitution for the damages they incurred. It is now Oregon’s turn to put pressure on Pacific Power to finally own up to their liabilities, and stop the practice of rubber stamping historic rate hikes, finally ceasing the continued financial hardship of our wildfire victims.”
By crafting this legislation, these lawmakers hope to provide added protection for consumers and deter utility companies from engaging in practices perceived as exploitative, especially during periods of immense hardship for wildfire-affected residents.
With the bill expected to be introduced during the next legislative session starting January 2024, its future will depend on garnering sufficient support from both sides of the aisle. The nuances of utility rate regulation and accountability will likely come under scrutiny from various stakeholders, including consumer advocates, industry representatives, and local communities still recovering from the tragic losses of 2020.
