Before the last burning embers are extinguished, before the pain and loss of a catastrophic wildfire sinks in, and before the choking smoke dissipates, the finger-pointing and rush to judgment to find the cost causer has already begun.
From Maui to Texas to the recent fires we witnessed in Los Angeles and New Jersey, wildfires are a continual threat. This is an issue that will be knocking on the door of each region, as extreme weather persists. If leaders are not prepared, there could be dire consequences.
State leaders, regulatory commissions and policymakers around the country must focus on measures to protect customers from rapidly growing wildfire risk. Aside from the devastation from fire itself, unrestricted liability could lead to forced shifts in infrastructure investments, rate increases for customers and utilities threatened as they continue to become the insurers of last resort, regardless of cause.
In 2023, an Oregon jury found Pacific Power liable for over $90 million in damages from some of the fires that ravaged the state during Labor Day 2020. A recent Oregon Department of Forestry report concluded that power lines were not the cause of the largest of these fires. Despite the findings, damage trials continue, and the utility remains on the hook for damages, pending appeal.
This type of uncapped liability threatens the health of utilities and negatively impacts customers, communities and economies. Thankfully, states in our region — Utah, Wyoming, and Idaho — have led in taking proactive measures, creating a standard of care that utilities must meet to protect customers and communities, while also shielding our utility providers from shouldering unmitigated blame simply because they have the deepest pockets.
Our independent spirit and desire to continue our groundbreaking economic growth creates an environment where appropriate accountability meets commonsense regulation. With that approach, we gain opportunities for infrastructure, commerce and good-paying jobs for our residents.
Extreme weather and wildfire risk are now the norm, not the exception. For many states, it is not if, but when, a catastrophic wildfire will impact communities. We applaud these Intermountain states and urge utility commissions to be mindful in striking the right balance in protecting customers, maintaining affordability and preserving the health of utilities.
Let’s not compound the tragic impacts of catastrophic wildfire by rushing to judgment and crippling the energy providers that drive our economic opportunity and ultimately our national security interests.
Paul Kjellander is the former president of the National Association of Regulatory Utility Commissioners. He also served as president of the National Council on Electricity Policy, as well as president of the Idaho Public Utilities Commission. Before joining the commission in 1999, Paul was elected to three terms in the Idaho House of Representatives, where he served from 1994 to 1999.