Warren Buffett's PacifiCorp faces $30 bln new wildfire claims
By Jonathan Stempel
April 30 (Reuters) -A utility owned by Warren Buffett's Berkshire Hathaway BRKa.N faces $30 billion of new claims blaming it for causing Oregon wildfires in 2020, nearly four times the maximum loss it had projected.
One thousand victims filed claims against the PacifiCorp utility on Monday in a state court in Portland.
Victims are each seeking up to $5 million for actual losses such as property damage, and up to $25 million for non-economic losses such as emotional distress.
The claimants were added to litigation where a jury last June ordered PacifiCorp to pay $90 million to 17 claimants for gross negligence over its failure to shut down power lines during a Labor Day windstorm.
PacifiCorp is appealing. Through late February, the Portland-based utility had paid $735 million to settle wildfire claims by several hundred people and 10 timber companies.
Neither PacifiCorp nor its immediate parent Berkshire Hathaway Energy immediately responded on Tuesday to requests for comment. Buffett's conglomerate owns 92% of Berkshire Hathaway Energy.
The claims were filed two months after Buffett warned in his annual shareholder letter that wildfires could threaten the survival of utilities in a few states, an outcome he had not anticipated.
Buffett singled out California's Pacific Gas & Electric PCG.N, which filed for bankruptcy in 2019, and Hawaiian Electric HE.N, which faces many lawsuits over last August's wildfires in Maui.
Berkshire ended 2023 with $2.4 billion of projected wildfire losses, and has said they could grow to $8 billion.
The federal government is seeking nearly $1 billion from PacifiCorp to cover costs of multiple wildfires in Oregon and Northern California, and has threatened a lawsuit.
Berkshire bought PacifiCorp for $5.1 billion in 2006.
The case is Henson et al v PacifiCorp et al, Oregon Circuit Court, Multnomah County, No. 20CV33885.
Reporting by Jonathan Stempel in New York; editing by Jonathan Oatis
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