Salem, OR – Three Oregon lawmakers have announced plans to introduce legislation that would prevent utility companies, such as PacifiCorp, from raising rates while they are facing unresolved wildfire lawsuits for three or more years. The proposal comes in the wake of a recent rate increase approval for PacifiCorp, which has been embroiled in numerous lawsuits stemming from the devastating 2020 wildfires in Oregon.
Republican Reps. Jami Cate, Virgle Osborne, and Ed Diehl shared their intention to sponsor the bill ahead of the upcoming legislative session in January 2024. The bill seeks to hold utilities accountable for their role in the wildfires, particularly as the state grapples with the aftermath of the destruction caused by the 2020 fires. The lawmakers argue that it is unfair for PacifiCorp to raise rates on customers while the company has yet to fully resolve the lawsuits related to the deadly wildfires.
Their announcement follows a 9.8% rate increase approved by the Oregon Public Utility Commission, which will take effect in January 2024. This rate hike is part of PacifiCorp’s effort to cover rising costs, some of which the company attributes to wildfire risk and mitigation. Since 2021, PacifiCorp customers have seen nearly a 50% increase in their rates, according to the Oregon Citizens’ Utility Board, which advocates on behalf of utility customers.
The utility is currently facing multiple lawsuits over the 2020 wildfires, including a recent federal lawsuit filed by the U.S. government over the Archie Creek Fire. The fire, which broke out in September 2020 in Oregon’s Douglas County, scorched more than 200 square miles, including federal land. The U.S. government’s lawsuit accuses PacifiCorp of negligence, claiming the utility failed to maintain its power lines, which led to the fire. The lawsuit seeks to recover damages for the significant costs incurred by the federal government as a result of the fire.
A PacifiCorp spokesperson responded to the federal lawsuit, stating that the company is committed to working with the U.S. government to find a reasonable resolution. “It is unfortunate the U.S. government decided to file a lawsuit in federal district court, however, PacifiCorp will continue to work with the U.S. government to find reasonable resolution of this matter,” the spokesperson said in a statement.
The new legislation, which the lawmakers plan to introduce in the 2024 session, aims to stop PacifiCorp and other utilities from passing the financial burden of unresolved lawsuits onto consumers. Rep. Osborne, who will serve as the bill’s co-chief sponsor, expressed strong support for the federal government’s legal action against the utility. “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,” Osborne said in a statement.
PacifiCorp, meanwhile, has already reached several settlements over the Archie Creek Fire, including a $299 million agreement with 463 plaintiffs and a $250 million settlement with 10 companies with commercial timber interests. The utility has also faced significant legal challenges in other litigation related to the 2020 wildfires. In June 2023, an Oregon jury found PacifiCorp liable for its role in the fires, ordering the company to pay punitive damages and other compensation to victims.
The 2020 wildfires in Oregon, which were among the worst in the state’s history, resulted in the deaths of nine people and the destruction of thousands of homes. With the new bill, Oregon lawmakers are seeking to ensure that utilities like PacifiCorp are held accountable for their role in such disasters while preventing them from raising costs for already struggling customers.
