Greg Abel, chief executive of Berkshire Hathaway, told shareholders in Omaha that a recent appellate ruling in Oregon has materially altered the legal landscape facing PacifiCorp, the utility that is part of Berkshire Hathaway Energy. Speaking at Berkshire’s annual meeting, Abel said the April 8 decision by an Oregon state appeals court - which found a major wildfire case could not proceed as a class action - has taken a substantial amount of pressure off the company.
"We’re back to first base," Abel said, using the phrase to indicate the legal threat had been reduced. He added that, in practical terms, the ruling means parts of the prior litigation must be revisited. "They said, back to ground zero, start over again," he said, describing the effect of the appeals court ruling on the earlier trial outcomes.
PacifiCorp has been defending itself against litigation tied to a string of wildfires in Oregon and northern California. Victims in those suits have alleged the utility failed to shut off power lines during a 2020 Labor Day weekend windstorm, an accusation that underpinned a significant 2023 jury finding of gross negligence in Oregon. That verdict exposed the Portland-based utility to what plaintiffs argued could be tens of billions of dollars in potential liabilities, and PacifiCorp has at times cited exposure estimates as high as $55 billion.
The Oregon appeals court concluded the trial judge erred by allowing the original jury to assume PacifiCorp’s alleged wrongful conduct applied uniformly to all victims affected by the fires. Prior to the appeals court decision, 171 plaintiffs had been awarded about $1.1 billion across a set of "mini-trials" that began in January 2024; those mini-trials had been expected to continue into 2028.
Abel described the appeals court action as providing breathing room as PacifiCorp engages regulators to secure a framework that would allow it to recover costs and justify investments in the power grid. The company has been lobbying several western states to put in place liability caps and to create state-administered wildfire funds to compensate victims, contingent on utilities filing and honoring safety plans designed to mitigate fire risk.
Utilities contend such arrangements create a safety net that enables them to invest in maintenance and infrastructure without the constant threat that indeterminate litigation could strain liquidity or lead to bankruptcy. Abel used the term "regulatory compact" to describe the arrangement PacifiCorp seeks - a framework where the utility can charge customers enough to justify increased infrastructure spending while avoiding undue risk.
However, Abel acknowledged resistance from regulators and elected officials who are reluctant to allow rate increases. He pointed to states that have adopted protections for utilities, citing California as having raised its wildfire fund by $18 billion following multiple fires that damaged parts of the Los Angeles area in January 2025. He also called Utah’s protections - which allow large utilities to surcharge customers and cap liability on some claims - the "gold standard." Oregon, he noted, has not enacted similar measures.
PacifiCorp is owned by Berkshire Hathaway Energy, which is itself owned by Berkshire Hathaway. Berkshire acquired PacifiCorp in 2006 for $5.1 billion. The company continues to navigate the legal process as it seeks regulatory solutions that would permit it to manage wildfire-related financial risk while maintaining the ability to invest in its grid.