Warren Buffett's PacifiCorp reaches $150 million wildfire settlement
Warren Buffett's utility company, PacifiCorp, has reached a $150 million settlement with 378 plaintiffs affected by the 2020 wildfires in Oregon and California. PacifiCorp has already paid over $1 billion to settle claims related to the wildfires. However, the company still faces additional litigation and a potential lawsuit from the U.S. government. Buffett acknowledged in his annual letter to shareholders that he underestimated the financial risks of wildfires. PacifiCorp is a subsidiary of Berkshire Hathaway Energy, which is owned by Buffett's conglomerate, Berkshire Hathaway.
By Jonathan Stempel
June 24 (Reuters) - PacifiCorp, a utility owned by Warren Buffett’s Berkshire Hathaway (BRKa.N) , agreed to a $150 million settlement with 378 plaintiffs arising from one of the 2020 wildfires that devastated parts of Oregon and northern California.
The settlement announced on Monday resolves substantially all claims in northern California related to the Slater Fire, which burned approximately 157,000 acres (63,536 hectares) over two months and crossed into Oregon before being contained.
PacifiCorp has paid more than $1 billion to settle more than 1,600 claims arising from the Labor Day weekend fires with individuals and businesses in Oregon and California.
The Portland, Oregon-based utility still faces a slew of litigation over the wildfires, with some victims blaming PacifiCorp for failing to turn off power lines during a windstorm.
One lawsuit seeks at least $30 billion. PacifiCorp considers that amount excessive, but has said it would continue settling “all reasonable claims.”
The U.S. government has also threatened to sue PacifiCorp over its failure to pay $356 million in costs and damages associated with the Slater fire.
PacifiCorp is a unit of Berkshire Hathaway Energy, which is 92% owned by Berkshire Hathaway, the Omaha, Nebraska-based conglomerate run by Buffett since 1965.
Buffett said in his Feb. 24 annual letter to Berkshire shareholders that he “made a costly mistake” in not anticipating the financial risks from wildfires.
Berkshire bought PacifiCorp for $5.1 billion in 2006.