Pacificorp agrees to pay $575M to settle Calif wider claims

Pacificorp agrees to pay $575M to settle Calif wider claims

PacifiCorp Agrees to Pay $575 Million to Settle California Wildfire Claims

PacifiCorp has reached a $575 million settlement to resolve claims related to damages caused by six wildfires in California, according to a recent announcement by the U.S. Department of Justice. The agreement addresses allegations that the utility's equipment contributed to the ignitions, which occurred between 2017 and 2021. The fires collectively caused extensive property damage and environmental harm, prompting investigations by state and federal authorities.

The settlement includes compensation for 1,434 plaintiffs, encompassing individuals, businesses, and public entities affected by the wildfires. Under the terms, PacifiCorp will allocate funds to cover verified losses, including property destruction, firefighting costs, and long-term ecological recovery efforts. The utility has not admitted liability as part of the resolution.

This settlement reflects growing regulatory and financial pressures on energy companies to address wildfire risks amid worsening climate conditions. PacifiCorp, a subsidiary of Avista Corp (NASDAQ: AVA), has faced increasing scrutiny over infrastructure maintenance and safety protocols in fire-prone regions. The $575 million payout represents a significant expense for the company, potentially impacting its 2024 earnings and capital allocation plans.

The resolution was finalized with the involvement of the U.S. Attorney's Office for the Eastern District of California and state wildfire mitigation agencies. While the financial terms are fixed, the ultimate cost may vary based on claims administration and legal fees. Investors are likely to monitor how this settlement aligns with PacifiCorp's broader risk management strategies and regulatory compliance efforts.

Source: U.S. Department of Justice Press Release
Source: PacifiCorp Newsroom

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