Core Viewpoint - PacifiCorp, a utility owned by Berkshire Hathaway, is facing potential liquidity issues and the risk of losing its investment-grade status due to accelerated trials related to the 2020 Labor Day weekend wildfires in Oregon [1][3]. Financial Implications - The company has set aside $2.85 billion for lawsuits, including $100 million in Q3, related to claims totaling $55 billion for damages from the wildfires that affected over 2,000 structures and 500,000 acres [1][4]. - A judge's decision to increase the trial pace could significantly strain PacifiCorp's liquidity and credit metrics, with dozens of trials scheduled for 2026 and over 100 more in 2027 and 2028 [3]. Legal Challenges - PacifiCorp is facing $52 billion in claims from the James litigation, with 109 plaintiffs awarded $589 million in mini-trials [4]. - The utility has agreed to pay over $1.5 billion to wildfire claimants, including a recent $125 million settlement with 93 Oregon wineries and vineyards [4]. Management Commentary - Berkshire Hathaway's leadership acknowledged past mistakes in managing wildfire liabilities for PacifiCorp, emphasizing the challenge of balancing service continuity during wildfire threats with financial responsibilities [5].

The U.S. government sued Southern California Edison to help restore National Forest System lands burned in the Saddleridge wildfire near Los Angeles in 2019.Tuesday’s lawsuit seeks damages for fire suppression costs and rehabilitation stemming from the Edison International-owned utility’s alleged negligence, trespass by fire and violations of California public safety laws. Related: Edison to Open LA Fire Compensation Applications by ThanksgivingSouthern California Edison spokesperson Gabriela Ornelas said i ...