PacifiCorp, a utility owned by Warren Buffett’s Berkshire Hathaway, has reached a $150 million settlement with 378 plaintiffs concerning the 2020 wildfires that ravaged parts of Oregon and northern California. The settlement, announced on Monday, resolves most claims in northern California linked to the Slater Fire, which scorched about 157,000 acres over two months, spreading into Oregon before being controlled.
So far, PacifiCorp has disbursed over $1 billion to settle over 1,600 claims stemming from the Labor Day weekend fires involving individuals and businesses in Oregon and California. Despite this, the Portland-based utility is still entangled in numerous legal battles over the wildfires, with some victims alleging that PacifiCorp neglected to deactivate power lines during a windstorm. One lawsuit is seeking a minimum of $30 billion, a sum PacifiCorp deems excessive but is committed to resolving ‘all reasonable claims.’
Moreover, the U.S. government has issued a warning to sue PacifiCorp for failing to pay $356 million in expenses and damages related to the Slater fire. PacifiCorp operates as a subsidiary of Berkshire Hathaway Energy, which is predominantly owned by Berkshire Hathaway, the conglomerate overseen by Buffett since 1965. Buffett admitted in his annual letter to Berkshire shareholders on Feb. 24 that he underestimated the financial risks posed by wildfires. In 2006, Berkshire acquired PacifiCorp for $5.1 billion.
