PacifiCorp to Pay $575M to Resolve Federal Wildfire Claims

Utility company reaches settlement over 2020 and 2022 blazes in Oregon and California.

Published on Feb. 21, 2026

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PacifiCorp has agreed to pay $575 million to resolve the federal government's claims for damages stemming from six wildfires in Oregon and California in 2020 and 2022. The settlement resolves the government's allegations that the utility's electrical lines negligently started the fires, which burned over 290,000 acres of public land.

Why it matters

This settlement is the latest multimillion-dollar payout by PacifiCorp related to the deadly wildfires, which have become an increasing financial burden for the utility. The funds will help restore the burned public lands and repay the government for firefighting costs, which have grown to consume more than half of the U.S. Forest Service's annual budget.

The details

Under the agreement, PacifiCorp will pay $575 million to the federal government to resolve claims over four fires in Oregon in 2020 and two fires in California in 2020 and 2022. The utility has faced a series of lawsuits over the 2020 blazes in Oregon, with juries ordering it to pay hundreds of millions in damages for negligence. PacifiCorp is also appealing a 2023 Oregon jury verdict that found it liable for failing to cut power despite fire warnings.

  • The 2020 Labor Day weekend fires in Oregon were among the worst natural disasters in the state's history, killing 11 people and destroying thousands of homes.
  • The 2020 Slater Fire and 2022 McKinney Fire in California also claimed several lives.

The players

PacifiCorp

A utility company that provides electricity to customers in Utah, Wyoming, Idaho, Washington, Oregon, and California.

U.S. Department of Justice

The federal agency that announced the $575 million settlement with PacifiCorp over the wildfires.

Eric Grant

U.S. Attorney for the Eastern District of California, who said the settlement holds individuals and corporations responsible for wildfire damages.

Darin Carroll

CEO of PacifiCorp, who said the sale of the company's assets in Washington will improve financial stability and ensure reliable service for customers.

Greg Abel

The former head of Berkshire Hathaway's utility unit who is now the CEO of the conglomerate, which owns PacifiCorp.

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What they’re saying

“This settlement served the Department's longstanding policy of holding individuals and corporations responsible for damages caused by wildfires. Every fire impacting federal lands, no matter the size, is a priority.”

— Eric Grant, U.S. Attorney, Eastern District of California

“The move would 'improve the company's financial stability while simplifying our operations' and help ensure reliable service for customers in Washington.”

— Darin Carroll, CEO, PacifiCorp

What’s next

PacifiCorp's appeal of the 2023 Oregon jury verdict that found it liable for negligence is still making its way through state court.

The takeaway

This settlement underscores the growing financial burden that wildfires have become for utility companies like PacifiCorp, as they face mounting legal costs and payouts related to the deadly blazes. The case highlights the need for utilities to prioritize fire prevention and preparedness measures to mitigate their liability risks.