Arizona mulls bill that would shield utilities from wildfire liability

By Adam Aton | 03/14/2025 06:24 AM EDT

The proposal has attracted support on both sides of the aisle, even as the insurance industry has fought aggressively against it.

Smoke rises from a wildfire that erupted last year near Phoenix.

Smoke rises from a wildfire that erupted last year near Phoenix. Tiffany Davila/Arizona Department of Forestry and Fire Management via AP

A proposal to shield Arizona utilities from some wildfire-related lawsuits has divided both parties as it advances through the state Legislature.

At stake is who pays for wildfire damages and the continued flow of electricity.

With utilities risking billions of dollars in potential liabilities if their equipment ignites a wildfire, Arizona lawmakers are struggling to avoid or limit price spikes to power bills, insurance or both.

Advertisement

H.B. 2201 aims to make it more difficult to sue utilities for damage caused by wildfires started by their equipment. It also would require utilities to submit fire mitigation plans every two years.

GET FULL ACCESS