Western power giant PacifiCorp could have its credit rating dropped to “junk” status by a leading ratings group because of its potential liability for destructive wildfires.
S&P Global Ratings said it might downgrade the credit rating of PacifiCorp, which calls itself the largest grid operator in the Western U.S., if juries award substantial damages for the company’s role in a group of 2020 wildfires in Oregon.
PacifiCorp, which generates and sells power to 2.1 million customers in six Western states, faces a barrage of lawsuits tied to major wildfires. It has already paid $2 billion in settlements and estimates it may face over $50 billion more in damages, which has raised analyst concerns over whether the company can afford such liabilities.
The Berkshire Hathaway-owned utility’s court battles have made it an example of how intensifying extreme weather has raised new questions about who can — and should — pay for damages.
