PacifiCorp has agreed to pay $575 million to settle claims brought by the United States for damages resulting from six wildfires in California and Oregon.
The settlement covers two major fires in California: the Slater Fire, which began on September 8, 2020, within the Klamath National Forest and burned over 157,000 acres of federal land across several forests; and the McKinney Fire, which started on July 29, 2022, near the Klamath National Forest and burned about 39,000 acres of federal land.
In Oregon, four fires are included: the 242 Fire near Chiloquin that burned nearly 9,000 acres; the Archie Creek Fire near French Creek in Umpqua National Forest that burned about 67,000 acres; the Echo Mountain Complex Fire near Otis that affected approximately 2,500 acres including federal lands; and the South Obenchain Fire east of Eagle Point that consumed around 14,780 acres.
The agreement resolves claims alleging PacifiCorp’s electrical lines negligently started all six fires. The funds will reimburse costs incurred by the United States in fighting these fires. The U.S. Forest Service spends more than half its annual budget on wildfire suppression. Settlement money will also go to restoring some of the roughly 290,000 acres of public land damaged by these fires.
Nearly $240 million of this recovery is related to California fires. These sums are among the largest ever recovered by the federal government for wildfire damages.
Principal Deputy Assistant Attorney General Adam Gustafson stated: “The United States and PacifiCorp have reached a settlement that ensures fair compensation to the American taxpayer for fire-related damages. 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.”
U.S. Attorney Eric Grant for the Eastern District of California said: “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.”
Scott E. Bradford, U.S. Attorney for Oregon’s district added: “Wildfires remain a recurring threat to our natural resources, the safety of our communities, and their economic well-being. The costs of land losses and fire responses are substantial. Recouping the costs associated with these wildfires is a priority for our office, and this settlement achieves that.”
This resolution resulted from cooperation between U.S. Attorney’s Offices in California and Oregon along with assistance from both U.S. Forest Service and Department of Interior officials.
Assistant U.S. Attorneys Tara Amin and Kelli L. Taylor (Eastern District of California) as well as Alexis Lien (District of Oregon) represented their offices in handling these cases.
It is noted that all claims resolved under this settlement are allegations only; there has been no finding or admission of liability by PacifiCorp regarding these incidents.
