Pacific Power Seeks 57 Percent Rate Hike for Wildfire Costs

Pacific Power, a utility owned by Berkshire Hathaway, has requested a 57 percent rate increase from California regulators to raise its annual base revenue by $103 million. The company intends to use the funds to harden its power grid against wildfires in a rugged, sparsely populated region of Northern California that serves approximately 46,000 customers.

In addition to the base revenue increase, the utility is seeking to recover $340.5 million from customers to cover legal expenses and liability claims stemming from the 2020 Slater Fire and the 2022 McKinney Fire. If approved, these requests could raise the average monthly residential bill by $46, though the company has suggested securitizing the costs to spread payments over a longer period.

President Ryan Flynn defended the request by citing the dry, densely forested, and rugged nature of the service territory. The request follows a trend of rising electricity costs and wildfire liabilities across the American West. Regulators are scheduled to review the proposals in 2027.