PacifiCorp pays $250 million in settlement to timber companies for Oregon wildfires
PORTLAND, Ore. (KOIN) — A major utility company is now shelling out hundreds of millions of dollars to timber companies in a new settlement three years after the Oregon Labor Day fires. This comes after another settlement to hundreds of customers whose homes were destroyed or damaged.
This is the second time this month that PacifiCorp will pay hundreds of millions of dollars to settle, following their alleged part in the 2020 Labor Day fires that burned more than 1,800 square miles and destroyed thousands of homes, as well as killing nine people.
“Oregon is kind of the epicenter of the timber industry in the United States and it’s important what they do,” attorney Mikal Watts said.
The timber industry was also the epicenter of the devastating wildfires in the heart of Oregon.
“Tens of thousands of acres of prime timberland that would’ve been usable wood was burned,” Watts said. “There were massive economic losses as a result.”
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On Monday, PacifiCorp settled for an additional $250 million for some of the state’s largest timber companies for the damage done three years ago in an industry that serves the entire country. This comes after another settlement earlier this month for $299 million in the Archie Creek Fire lawsuits which went to the homeowners impacted.
Back in June, a jury found the electric utility at least partially responsible for causing the fires as property owners alleged PacifiCorp failed to shut off power to its 600,000 customers during a windstorm despite warnings, and that its power lines caused multiple fires. Watts, one of the lead attorneys representing the plaintiffs, has a history of working on major wildfire lawsuits. He says he believes the company is taking responsibility.
“A lot of companies pay when they have to,” Watts said. “This company, from the time that they got new leadership in September, reached out, endeavored to do the right thing.”
Beyond settling the lawsuits, Watts says Pacific Power is also working on proactive measures with the infrastructure and power grid to prevent this from happening again.
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“If they can, you know, recoup the cost of that and use those dollars not to go to shareholder dividends but go toward investments to harden the grid, that’s going to make it less likely that we have another wildfire like this in 2024,” Watts said.
Watts and his team say there are more suits down the road. In addition to ongoing discussions with homeowners along the Oregon-California border with the Slater Fire, they’re also representing many wineries in the Willamette Valley that had most of their 2021 crops destroyed by smoke taint as a result of the 2020 fires.
PacificCorp shared in a statement that they are committed to settling claims for damages and that they are happy they have been able to resolve these matters so far.
Read the full statement from PacifCorp below:
PacifiCorp has reached a $250 million settlement agreement with 10 companies with commercial timber interests associated with the Archie Creek Complex Fire. The 2020 wildfires were undeniably tragic, and PacifiCorp is pleased to resolve this matter on behalf of our impacted customers and communities.
The company has settled and is committed to settling all reasonable claims for actual damages as provided under Oregon law. This is the latest example and follows closely behind a separate settlement agreement reached earlier this month with 463 individual plaintiffs related to the Archie Creek Complex Fire. These are in addition to settlements with other individuals and businesses, and hundreds of insurance claims PacifiCorp settled where homeowners and businesses have received insurance payments for their real and personal property damages and alternative living expenses.
The growing threat of wildfires to communities and businesses is bigger than any one company or industry. PacifiCorp will continue to collaborate with stakeholders on holistic solutions to address the impact of wildfires while leading in investments in wildfire preparedness and mitigation. The safety of our customers and communities remains our top priority.
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