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The federal government is suing PacifiCorp and its subsidiary, Pacific Power, seeking to recover “hundreds of millions of dollars” in costs and damages from the Archie Creek Fire in Douglas County. The government alleges the utility’s negligence and breach of duty caused the blaze to ignite Sept. 8, 2020.
Its complaint outlines a pattern of safety violations by PacifiCorp. The Archie Creek Fire continued burning for nearly eight weeks, scorching more than 130,000 acres, 67,000 of which was owned by the federal government. The lawsuit was filed in U.
S. district court in Portland Dec. 19.
The Oregon Department of Justice also is contemplating a lawsuit regarding 2020 wildfires, according to PacifiCorp’s latest financial statement. The Archie Creek Fire caused significant damage to federally owned and managed forest lands, timber, natural resources, wildlife habitat, trails, roads, bridges, campgrounds and other infrastructure. The government also faced substantial costs for suppression, reforestation, restoration, investigation and administration regarding the fire.
The U.S. aims to determine the exact amount of its damages and losses in a jury trial.
PacifiCorp failed in its duty to maintain and operate its power lines and equipment to minimize fire danger, according to the complaint. It didn’t take reasonable safety precautions, including during high-risk conditions. The utility also had a record of safety violations such as vegetation clearance problems and poorly maintained or obsolete transmission lines.
In a 2021 investigation regarding a 2012 Utah wildfire, the Federal Energy Regulatory Commission found that 45% of PacifiCorp’s transmission lines were so poorly maintained or obsolete that they should not have carried any electrical current. PacifiCorp has already paid about $550 million in settlements for wildfire-related lawsuits from the Archie Creek Fire to 10 companies and 463 individual plaintiffs. Through Sept.
30, PacifiCorp had paid $1.2 billion in settlements regarding wildfires in recent years. But the company still faces other notable court cases.
More than 1,500 victims of the 2020 Labor Day fires have filed $46 billion in claims against the utility. Those were added to a case in which juries have awarded $217 million to plaintiffs. PacifiCorp also faces lawsuits from wineries seeking more than $130 million.
The same day the U.S. government’s lawsuit was filed, the Oregon Public Utility Commission approved an overall rate increase for all Pacific Power customers of approximately 8.
5%. The utility had initially requested a 17.9% increase.
For residential customers, the increase is expected to be 9.8%. Reasons for the increase include wildfire-related cost increases.
Since 2021, Pacific Power has increased rates nearly 50%. A trio of Oregon representatives are calling on the Legislature to hold PacifiCorp responsible, and noted that the federal government asked PacifiCorp to pay for costs associated with the Archie Creek Fire in March 2023. They’ll bring forward a bill in January to ban a public utility from raising rates if they have unresolved wildfire lawsuits for three or more years.
Rep. Jami Cate, R-Lebanon, will introduce the bill, which is co-sponsored by Reps. Virgle Osborne, R-Roseburg, and Ed Diehl, R-Stayton.
“Pacific Power continues to shirk their responsibility in the devastating 2020 fires that ravaged our state,” Cate said in a prepared statement. “It is now Oregon’s turn to put pressure on Pacific Power to finally own up to their liabilities and stop the practice of rubber stamping historic rate hikes, finally ceasing the continued financial hardship of our wildfire victims,” she said. State regulators approve more electricity rate hikes for Oregonians in 2025 Wyden calls on Oregon’s largest electric utility to detail drivers of massive rate hikes Washington utilities call keeping grid up to snuff 'moon shot' PacifiCorp faces new $100 million wine damage lawsuit for 2020 Labor Day fires Pacific Power faces $42.
5 billion in new wildfire claims, seeks more rate increases Pacific Power seeks another rate increase.
