Utility company settles federal claims tied to costly wildfires across two states.
A major utility company has agreed to pay hundreds of millions of dollars to resolve claims tied to destructive wildfires that burned large areas of public land in California and Oregon. Federal officials announced that PacifiCorp will pay $575 million to settle claims brought by the United States over six separate fires that occurred between 2020 and 2022. The fires damaged national forests, required costly emergency response efforts, and left lasting impacts on public lands.
Two of the fires occurred in California. One began in September 2020 on Slater Butte within the Klamath National Forest and spread across more than 150,000 acres of federal land. Another fire started in July 2022 near the same forest area and burned roughly 39,000 acres. These fires affected multiple national forests and required extensive firefighting resources over long periods of time.
Four additional fires took place in Oregon during September 2020. One started near Chiloquin and burned nearly 9,000 acres of federal land. Another ignited near French Creek in the Umpqua National Forest and spread across about 67,000 acres. A third fire burned near Otis, Oregon, affecting both private and public land, including roughly 2,500 acres under federal control. The fourth Oregon fire began east of Eagle Point and burned nearly 15,000 acres of federal land. Together, the six fires damaged close to 290,000 acres of public land across two states.
Federal officials alleged that PacifiCorp’s electrical lines played a role in starting all six fires. The settlement resolves claims that the company failed to properly manage or maintain its equipment, leading to conditions that allowed the fires to ignite and spread. PacifiCorp has denied responsibility for the fires, and the agreement does not include a legal finding of fault. Instead, the settlement allows both sides to avoid further litigation while addressing the financial impact of the fires.
The funds from the settlement will help cover the high costs the federal government incurred while fighting the fires. Wildfire response has become a growing financial burden, with the U.S. Forest Service now spending more than half of its annual budget on fire suppression efforts. Officials said the payment will help offset those expenses and reduce strain on limited public resources.
In addition to firefighting costs, some of the settlement money will go toward restoring damaged land. Federal agencies plan to use the funds to support recovery work on burned forests and public spaces managed by the Forest Service and the Bureau of Land Management. Restoration efforts may include erosion control, habitat repair, and long-term land management projects designed to reduce future fire risk.
Justice Department representatives said the agreement reflects a broader policy of holding companies accountable when their actions or equipment cause harm to public lands. Officials emphasized that fires affecting federal land remain a priority regardless of size or location, due to the environmental and financial damage they cause. U.S. attorneys from both California and Oregon noted that wildfires continue to threaten communities, natural resources, and local economies.
The settlement was the result of coordination between multiple federal offices, including U.S. attorney’s offices in both states and land management agencies. Government lawyers handled the case on behalf of the United States, working across agencies to assess damages and negotiate terms.
While PacifiCorp continues to deny liability, the agreement closes a major chapter related to the six fires. Federal officials said the outcome ensures that taxpayers are repaid for a portion of the damage while allowing the utility company to continue providing power to customers. The case highlights the growing legal and financial risks tied to wildfire damage as fire seasons become more severe and costly.
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PacifiCorp pays $575M to federal government over 2020 Labor Day Fires
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