Berkshire Hathaway's new CEO Gregory Abel drew a line in the sand on wildfire liability, declaring that Berkshire Hathaway Energy's utility PacifiCorp "is not an insurer of last resort and should not be treated as a deep pocket" — a pointed message to plaintiffs' attorneys, regulators and the courts as the energy industry grapples with expanding wildfire exposure across the western United States.
Abel, who succeeded Warren Buffett as chief executive and penned his first annual shareholder letter released today, acknowledged BHE's accountability where it exists — including PacifiCorp's settlements tied primarily to the 2020 Labor Day fires — but drew a firm distinction between admitted responsibility and unwarranted financial exposure.
"Where responsibility does not exist, it will continue to seek judicial relief," he wrote, framing the position as essential to the regulatory compact that allows utilities to earn a reasonable return on invested capital. "Accountability, paired with principled opposition to unwarranted liability, is essential to preserving the regulatory compact that governs utilities."
The statement carries particular weight given the scale of wildfire-related losses already absorbed by BHE's PacifiCorp subsidiary.
