As wildfires intensify, utilities want liability protections

Across the West, electrical utilities are pushing state lawmakers to grant them legal immunity or limit damage payouts if their equipment sparks a blaze. They're backing bills, which have passed or been proposed in at least eight states over the past few years

- Alex Brown

As climate change drastically increases the frequency and severity of wildfires, power companies say they're facing a growing risk for payouts that could bankrupt them or require massive rate hikes on customers. Across the West, electrical utilities are pushing state lawmakers to grant them legal immunity or limit damage payouts if their equipment sparks a blaze. They're backing bills, which have passed or been proposed in at least eight states over the past few years, that would require the utilities to follow plans to limit their risks of causing a fire, such as trimming trees or burying power lines. In exchange for taking those steps, lawmakers would give utilities protection from lawsuits that could expose them to billions of dollars in damage claims.

"We're only one wildfire away from bankruptcy," said Shawn Taylor, executive director of the Wyoming Rural Electric Association, a group that represents electrical cooperatives. "Even if we avoid bankruptcy, we'd have huge rate increases to cover the cost of a lawsuit."