PacifiCorp settles wildfire claims for over half a billion dollars
Fortune
by Claire Rush, The Associated PressFebruary 21, 2026
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PacifiCorp has agreed to pay $575 million to settle federal claims related to wildfires in Oregon and California caused by its electrical lines. This settlement addresses damages from six fires between 2020 and 2022, including the deadly Labor Day weekend fires in Oregon that killed 11 people and burned over a million acres. The funds will be used to restore burned public land and reimburse the government for firefighting costs, which have become a significant financial burden for the U.S. Forest Service.
The agreement is part of PacifiCorp's larger efforts to resolve wildfire-related claims totaling over $2 billion. The utility has faced numerous lawsuits in Oregon, with juries awarding hundreds of millions of dollars in damages due to its negligence in managing power lines during high-risk fire conditions. A 2023 verdict found the company liable for failing to cut power despite warnings, leading to a class-action trial set for 2026-27.
PacifiCorp's financial challenges have been further strained by court-mandated bonds to secure its obligations, impacting its cash flow. To stabilize its finances, the utility recently announced plans to sell its wind and natural gas assets in Washington to Portland General Electric for $1.9 billion. This move aims to simplify operations and ensure reliable service while addressing ongoing legal liabilities.
The settlement highlights the growing focus on corporate responsibility in wildfire management. PacifiCorp's parent company, Berkshire Hathaway, led by CEO Greg Abel, expects its subsidiaries to manage their obligations independently. The case underscores the broader implications for utilities and investors navigating increasing regulatory scrutiny and financial risks tied to climate-related disasters.
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Originally published on Fortune on 2/21/2026