Berkshire Hathaway subsidiary PacifiCorp has agreed to pay US$575 million (A$811 million) to settle damage claims brought by the United States Government over wildfires that burned nearly 290,000 acres of federal land.
The U.S. Department of Justice said the settlement resolved the claims that PacifiCorp’s electrical lines negligently started all six fires in California and Oregon in 2020 and 2022.
It said the money would help repay the United States for the substantial costs of fighting the fires, with the funds to be distributed to the Forest Service and Bureau of Land Management to restore some of the public land that was burned.
“This agreement strikes a balance by addressing the government’s significant fire-suppression costs and loss of natural resources without preventing PacifiCorp from offering electricity at fair prices,” Principal Deputy Assistant Attorney General Adam Gustafson of the Department of Justice’s Environment and Natural Resources Division said in a media release.
U.S. Attorney Eric Grant of the Eastern District of California said the settlement served the Department’s longstanding policy of holding individuals and corporations responsible for damages caused by wildfires.
PacifiCorp denied liability in agreeing to settle.
President of PacifiCorp’s Pacific Power unit Ryan Flynn said the settlement reflected "our ongoing commitment to resolve all reasonable claims" related to Oregon and California wildfires, while "providing certainty for customers and progress toward a financially healthy utility.”
Berkshire, 30% owned by now-retired billionaire Warren Buffet, bought PacifiCorp for $5.1 billion in 2006.
He remains Chairman but has been succeeded by Greg Abel as Chief Executive.
Berkshire Hathaway Inc Class B (NYSE: BRK.B) shares finished $1.26 (0.25%) higher at $498.20 on Friday (Saturday AEDT), capitalising the company at $1.07 trillion.
