In what has become a sort of legislative tradition, NV Energy is having talks late in the session, this time about wildfire liability.
According to four people with knowledge of the situation, discussions are taking place behind the scenes about addressing the utility company’s liability in wildfires started by its equipment.
It’s a fluid situation and everything is in the early stages, but here’s what we know so far:
- Sources familiar with the matter, who spoke on condition of anonymity because conversations are ongoing, said everything is preliminary.
- NV Energy declined to comment on the situation.
- With wildfires becoming larger and more destructive, utilities have been subjected to significant lawsuits regarding their role in recent destructive fires, while insurers often decline to provide sufficient coverage for the damages.
- The discussions come as Western-state utility companies owned by Berkshire Hathaway — which purchased NV Energy a dozen years ago — take efforts to limit what it pays out to victims if its equipment sparked a fire, according to reporting by Politico’s E&E News.
- In Utah, Berkshire Hathaway has pushed through legislation that established a ratepayer-financed fund to pay wildfire claims. It has become the company’s “gold standard” legislation that other states are looking to follow, including Wyoming and Idaho, the latter of which passed a bill awaiting the governor’s signature to limit utilities’ liability if they’re in compliance with wildfire mitigation plans.
- In January, NV Energy asked state energy regulators to approve a $500 million wildfire self-insurance policy, paid by ratepayers, to protect it in case its equipment starts a blaze. Regulators are set to decide later this year.
- In Utah, Berkshire Hathaway has pushed through legislation that established a ratepayer-financed fund to pay wildfire claims. It has become the company’s “gold standard” legislation that other states are looking to follow, including Wyoming and Idaho, the latter of which passed a bill awaiting the governor’s signature to limit utilities’ liability if they’re in compliance with wildfire mitigation plans.
- In 2019, California established a fund to reimburse claims originating from wildfires started by utility companies participating in the fund. A recent proposal in Arizona would also have amply protected utilities from wildfire-related payouts but was significantly winnowed down.
— This story was written by Eric Neugeboren, Tabitha Mueller, Amy Alonzo and used with permission of The Nevada Independent. Go here for updates to this and other Nevada Independent stories.
