Oregon Senate Passes Bill to Protect Consumers from Paying for Utility-Caused Wildfire Damages
An Oregon Senate bill preventing utility companies from pushing part of the financial burden of wildfire-related damages onto consumers when a court finds the company liable for causing the fire passed the senate on Thursday with a vote of 22-6.
Oregon Senate Bill 926 Prevents Utility Companies From Recovering Certain Wildfire Costs
Oregon Senate Bill 926 was introduced in the Senate on January 21, and- after the Judiciary Committee voted to pass the bill out of committee on April 8, the bill was amended in the Senate on April 18 and passed earlier this week.
SB 926 explicitly targets power companies found to be negligent or complicit in causing a wildfire. It prevents private investor-owned utilities from recovering wildfire lawsuit costs from ratepayers if the court finds that the company caused the fire through negligence or recklessness.
These companies could not recoup costs related to the judgment, legal fees, settlements, or repairs by increasing consumers’ electricity rates.
Under the bill, any utility owing unpaid damages from a wildfire-related court ruling is also banned from issuing dividends, repurchasing stock, or distributing profits to investors.
Companies must consider the victims of wildfires for which they are found responsible before addressing shareholder profits.
SB 926 applies to electric companies serving over 25,000 customers in Oregon, and supporters say it protects ratepayers and may incentivize better wildfire mitigation efforts by utilities.
SB 926 applies to past and current wildfires. It provides for wildfires retrospectively that ignited on or after January 1, 2020, as well as court judgments issued between 2020 and 2025. It sets an annual interest rate of 9% on court-ordered wildfire damages, which will run from the date the fire started.
Utilities must also pay any taxes owed by those suing the electric company if the judgment is still unpaid by January 1, 2026.
Senators who voted against the bill raised concerns about unintended consequences for Oregon ratepayers and the state’s clean energy and energy system stability goals before a vote of 22-6 passed the bill. It now moves to the Oregon House of Representatives for further discussion.