Warren Buffett's PacifiCorp Reaches $178 Million Settlement Over 2020 Oregon Wildfires

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Warren Buffett's PacifiCorp Reaches $178 Million Settlement Over 2020 Oregon Wildfires
Emissions rise from smoke stacks at Pacificorp's 1000 megawatt coal fired power plant on October 9, 2017 outside Huntington, Utah. George Frey/Getty Images

PacifiCorp, a utility owned by billionaire Warren Buffett's Berkshire Hathaway, announced on Monday that it has reached a settlement of $178 million to address the claims of 403 plaintiffs related to two Oregon wildfires in 2020.

PacifiCorp Settles Claims with 1,500 in Oregon, California Fires

According to AP, PacifiCorp has recently reached resolutions with almost 1,500 individuals and businesses in Oregon and northern California regarding claims related to the Labor Day weekend fires.

The most recent settlements pertain to individuals affected by the Beachie Creek and Echo Mountain Complex fires in northwestern Oregon.

According to George McCoy, one of the attorneys representing the plaintiffs, the settlement on Monday included a large number of individuals who were affected by the Echo Mountain Complex Fire along Oregon's central coast.

Additionally, there were others who were impacted by the Santiam Fire in northwestern Oregon, east of the state capital Salem.

PacifiCorp Agrees to $900M Compensation for Wildfire Victims

The Portland, Oregon utility considers that amount to be too high, but intends to keep resolving "all reasonable claims."

The company has reached an agreement to provide over $900 million in compensation to those affected by the wildfires. As of March 31, they have projected losses totaling $2.4 billion, Reuters reported.

Victims are holding PacifiCorp responsible for their alleged failure to deactivate power lines during a windstorm. Ryan Flynn, president of PacifiCorp's Pacific Power unit, expressed his hope that the recent settlements would bring a sense of resolution for the plaintiffs.

According to George McCoy, a lawyer at Warren Allen representing the settling plaintiffs, the agreement offers significant compensation and allows the victims to rebuild and recover from the traumatic events.

In his annual letter to Berkshire shareholders on Feb. 24, Buffett admitted to a significant oversight in failing to foresee the financial risks associated with wildfires, describing it as a costly mistake.

During Berkshire's annual meeting on May 4, Greg Abel, who is expected to succeed Buffett as chief executive, expressed his determination to address the ongoing wildfire litigation faced by PacifiCorp.

Abel emphasized the need for legislative and regulatory reform to support utilities in this matter.

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