Every spring, investors flock to Omaha, Nebraska, for Berkshire Hathaway’s annual shareholder meeting, where Warren Buffett holds court. Insiders call it “Woodstock for Capitalists,” and CNBC covers it with the fervor of Fox Sports on Super Bowl Sunday.
Last year’s meeting held particular weight. Investors were watching closely to see if Buffett, the company’s 93-year-old CEO, would name Greg Abel, Berkshire’s vice chairman, as his successor, and how the company would weather the billions in wildfire lawsuits threatening its energy utilities. Buffett dodged the succession question, but the meeting revealed something just as consequential: the company’s strategy to avoid wildfire liability.
Two months earlier, the Utah legislature had passed a law allowing utilities to charge their own customers to build a fund for future fire damages. The state also has a 2020 law on the books that capped the amount fire victims could sue utilities for in damages. Combined, the two laws mean that if homes in Utah burn down due to a power company’s faulty electrical line, the financial damages residents can seek are limited — and they may already have been paying into the fund that covers them. For utilities, the result is reduced costs.
At the shareholder meeting, Abel singled out Utah as “the gold standard” of utility protection — a model he urged other states to adopt. “As we go forward,” he told the crowd, “we need both legislative and regulatory reform.”
Berkshire Hathaway Energy, or BHE, Buffett’s $100 billion energy arm, operates a vast power grid that stretches across the West. BHE subsidiaries such as Rocky Mountain Power and PacifiCorp are responsible for maintaining more than 17,000 miles of transmission lines that serve roughly 10 million customers across 10 states. In recent years, BHE has been slapped with lawsuits in Oregon worth nearly $10 billion for fires caused by its faulty equipment. For BHE, the Utah laws were a significant win, shielding the company from that kind of liability in at least one state. Across the West, BHE-owned utilities and their lobbyists are now trying to replicate that success, securing laws that both cap wildfire damages and shift costs onto customers.
“It’s infuriating to me that they are creating these situations,” said Stephanie Chase, a research and communications manager at the Energy & Policy Institute and a former consumer advocate in the Washington state Attorney General’s Office. “They’re not doing a good job at maintaining their power lines. Then when they start fires, they don’t want to pay for them.”
BHE’s infrastructure is aging, and maintaining it is expensive. Climate-proofing measures, like running power lines underground, can easily cost more than $1 million per mile, according to the Institute for Energy Research, and would put the cost of sending all BHE-owned equipment into the ground at well over $17 billion. Other resilience measures, such as trimming branches that grow over power lines and inspecting equipment in rural areas, are also expensive.
“Vegetation management is not one of the things that they receive a return on investment,” said Chase. State regulatory agencies typically set utility prices using a formula known as the rate base, which excludes routine maintenance like managing vegetation. By contrast, utilities earn a return when investing in new infrastructure, Chase added. “Utility companies have a much bigger incentive because they’re receiving a return on equity on any funds that they put into capital expenditures: building a new plant, building construction, building new lines,” she said. BHE did not respond to multiple requests for comment.
Earlier this summer, the Wyoming legislature passed a law that limits damages that can be awarded to victims of a utility-caused fire, so long as the company followed its own wildfire plan. In July, Idaho also enacted a similar law, shielding utilities from negligence if they prove they adhered to their wildfire plan. According to state regulatory filings, at least one representative for Rocky Mountain Power and other utilities operating in the state lobbied lawmakers in March and April to get the law passed.
One state senator who voted against Idaho’s law, Bruce Skaug, told Grist that it leaves little regard for residents who may have legitimate grievances. “We don’t want to bankrupt utilities,” Skaug said. “At the same time, if they burn down your house, you shouldn’t have any trouble getting the claim through a jury trial.” Yet, the law could do just that, he said. Skaug hopes to tweak the law to better protect residents during the next legislative session, which begins in January.
PacifiCorp is also running the same playbook in Washington. The company has petitioned state regulators to start tracking the cost of insurance increases and wildfire liability, which Chase calls a “stepping stone to getting those costs included in customer rates.” From there, utilities could begin to press regulators or legislators for permission to pass those costs on to customers.
In Utah, Rocky Mountain Power’s lobbyists benefited from a friendly legislature. Carl Albrecht, a co-sponsor of the two bills, spent decades working for utilities — including 23 years as CEO of a small electric cooperative — and takes several thousand dollars in political contributions from the energy utility industry and Berkshire Hathaway each year, according to campaign finance disclosures. Perhaps most crucially, Utah hasn’t had any major wildfires in recent memory.
That’s not the case in Oregon. In September 2020, fires enveloped hundreds of thousands of acres across the state, burning down 4,000 homes — including a state senator’s — and killing 11 people. In the aftermath, PacifiCorp became the state’s arch-villain — and a chance at the perks it won in other states vanished.
Soon the public learned that at least some of the half-dozen fires burning across Oregon that Labor Day stemmed from downed power lines owned by PacifiCorp. A subsequent investigation by the Federal Energy Regulatory Commission, an agency that oversees energy markets and transmission, found that the distance between vegetation and power lines did not meet safety standards and that some of these violations were so severe that “at least 45 percent of PacifiCorp’s BES lines” should not have had any power running through them at all.
Public outcry turned into class action lawsuits against PacifiCorp, which turned into a costly lesson for BHE. Since 2020, juries have awarded more than $300 million to several dozen plaintiffs. Yet the fate of thousands of other claimants remains unresolved as the lawsuits drag out in court. In the end, the company may be on the hook for around $8 billion more in potential damages.
But the lawsuits may not bring much relief to the victims.
“Warren Buffett is not just going to dump billions in to settle,” said Bob Jenks, executive director of Oregon Citizens’ Utility Board, a consumer advocacy group. More likely than meeting the claimants’ demands, Jenks predicted that “the company will go into bankruptcy.”
Despite its pariah status in Oregon, PacifiCorp has been trying to secure the same protections that it has in Utah. Earlier this year, when state representatives introduced utility-friendly bills in the Oregon legislature, they were dead on arrival. “I didn’t expect the degree of anger at PacifiCorp that’s out there,” Jenks said. “I understand. Your house burns down, and PacifiCorp is playing hardball and doing everything they can to prevent liability.”
The notion of offering some financial support to utilities in the form of ratepayer funds isn’t inherently problematic, experts acknowledge. For example, utilities in California rely on wildfire funds to pay for damages caused by their fires. As in Utah and other states, ratepayers contribute to the pot. But unlike other states, a government entity called the California Earthquake Authority — and not the utilities — oversees the distribution of that fund when it’s needed. After a tree felled a PG&E power line in 2021 and sent the Dixie Fire burning across Northern California, the fund has provided $445 million in support to the utility. As a result of the program, utilities like PG&E can avoid bankruptcy, but aren’t allowed to pass on the costs directly to their own customers.
So far, catastrophic fires haven’t hit states where PacifiCorp has won liability caps since they’ve taken effect. But with the track record of BHE subsidiaries and rising temperatures drying out Western forests, experts believe that it’s only a matter of time.
“The risk is there,” Jenks said. “Climate change has made our forests so much drier than they used to be, and we don’t have the same June rain. Our forests weren’t designed for this.”
This story was originally published by Grist with the headline Who pays for wildfire damage? In the West, utilities are shifting the risk to customers. on Sep 19, 2025.