By Jonathan Stempel
(Reuters) – PacifiCorp, a utility company owned by billionaire Warren Buffett’s Berkshire Hathaway (NYSE:), said on Monday it agreed to pay $178 million to resolve 403 plaintiffs’ claims arising from two wildfires in Oregon in 2020.
PacifiCorp has now settled nearly 1,500 claims arising from the Labor Day weekend fires with individuals and businesses in Oregon and Northern California.
The latest settlements involve victims of the Beachie Creek and Echo Mountain Complex fires in northwestern Oregon.
PacifiCorp said the “vast majority” of plaintiffs have withdrawn from class action lawsuits, while other plaintiffs are seeking at least $30 billion.
The Portland, Oregon-based utility considers that amount excessive, but plans to continue settling “all reasonable claims.”
It has agreed to pay more than $900 million to wildfire victims, and had $2.4 billion in expected losses through March 31. Victims blame PacifiCorp for failing to shut down power lines during a storm.
Ryan Flynn, president of PacifiCorp’s Pacific Power unit, said he hoped the latest settlements would provide plaintiffs with “some closure.”
George McCoy, an attorney at Warren Allen representing the settlement plaintiffs, said the agreement provides “meaningful compensation” and allows victims to “rebuild and recover from these traumatic events.”
PacifiCorp is part of Berkshire Hathaway Energy, which is 92% owned by Berkshire Hathaway, the Omaha, Nebraska-based conglomerate run by Buffett since 1965.
Buffett said in his annual letter to Berkshire shareholders on Feb. 24 that he “made a costly mistake” by failing to anticipate the financial risks of wildfires.
Greg Abel, Buffett’s expected successor as CEO, said at Berkshire’s annual meeting on May 4 that PacifiCorp would continue to fight “baseless” lawsuits, and that regulatory reform was needed to help utilities.
