Rocky Mountain Power Delays Wildfire Liability Fund for Wyoming Ratepayers
Rocky Mountain Power has temporarily withdrawn its proposal to create a special-use account that would have relied on Wyoming ratepayers to help cover the rising costs of wildfire insurance premiums and litigation expenses, Buffalo Bulletin reports.
The utility company, a subsidiary of PacifiCorp, made the decision on Thursday, citing ongoing wildfire-related legal proceedings. Representatives stated they will wait for the outcomes of these cases before revisiting the proposal with the Wyoming Public Service Commission.
This move delays any immediate rate hikes for Wyoming customers, but wildfire-related costs are expected to impact ratepayers eventually. PacifiCorp has already faced over $1 billion in settlements related to wildfires in Oregon and California, with further payments likely. In August, parent company Berkshire Hathaway reported that PacifiCorp anticipates up to $2.66 billion in cumulative wildfire-related losses, including significant settlements related to the James Fire, Slater Fire, and Archie Creek Complex Fire.
The company is also contending with up to $46 billion in additional class-action claims and legal challenges, further complicating its financial outlook.
Wyoming ratepayers have already experienced rate increases this year, with monthly electric bills rising by 5.5% in January, followed by a 9.3% hike. These increases were attributed to higher coal and natural gas prices in 2022 and 2023, and additional wildfire-related expenses could potentially add to future costs.
