PacifiCorp Settles Federal Claims for $575M Over 2020 and 2022 Wildfires

Utility company resolves government claims related to Labor Day and McKinney fires.

Published on Feb. 23, 2026

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PacifiCorp, a utility company, has reached a $575 million settlement with the federal government to resolve all known claims for damages related to the 2020 Labor Day wildfires in Oregon and the 2022 McKinney wildfire. This settlement is part of the company's ongoing efforts to address the impacts of devastating fires and invest in wildfire prevention initiatives.

Why it matters

Wildfires have become an increasingly serious threat in the western United States, causing significant damage to property, infrastructure, and the environment. This settlement represents PacifiCorp's commitment to take responsibility for its role in these events and work towards long-term solutions to address the growing wildfire risk.

The details

The $575 million settlement covers federal government claims related to the 2020 Labor Day wildfires, including the 242, Archie Creek, Echo Mountain, Slater, and South Obenchain fires, as well as the 2022 McKinney wildfire. PacifiCorp has now settled nearly 90% of known claims totaling more than $2.2 billion, providing financial certainty for the company and its customers. The utility continues to invest in wildfire prevention and mitigation initiatives, such as situational awareness, advanced monitoring technologies, enhanced vegetation management, and system strengthening.

  • The 2020 Labor Day wildfires occurred in September 2020.
  • The 2022 McKinney wildfire took place in 2022.
  • PacifiCorp reached the $575 million settlement on February 20, 2026.

The players

PacifiCorp

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

Ryan Flynn

The President of Pacific Power, a division of PacifiCorp.

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What they’re saying

“This settlement is another significant milestone demonstrating our ongoing commitment to resolve all reasonable claims related to the devastating fires that affected Oregon and California.”

— Ryan Flynn, President of Pacific Power (mybasin.com)

What’s next

PacifiCorp continues to invest in wildfire prevention and mitigation initiatives, including situational awareness, advanced monitoring technologies, enhanced vegetation management, and system strengthening. The company remains dedicated to collaborating with regulators, legislators, and customers to develop long-term solutions that address the growing threat of wildfires and other extreme weather events.

The takeaway

This settlement highlights the growing financial and operational challenges utilities face in addressing the increasing frequency and severity of wildfires, which are exacerbated by climate change. It underscores the importance of utilities taking proactive measures to mitigate wildfire risks and work with stakeholders to develop comprehensive solutions to protect communities and the environment.