Wyoming moves to protect electric utilities from wildfire liability

By Adam Aton | 03/04/2025 06:22 AM EST

Lawmakers want to avoid big rate hikes if power companies must pay for wildfire damage. Utilities could charge customers for wildfire mitigation.

A Forest Service photo shows wildfire destruction in Wyoming.

A Forest Service photo shows wildfire destruction in Wyoming, where lawmakers are moving to protect electric utilities from liability for wildfire damage. Jerod Delay/U.S. Forest Service via AP

Wyoming is poised to shield electric utilities from some wildfire-related liabilities as climate change disrupts both the electricity and insurance sectors.

Under legislation that’s awaiting action from Republican Gov. Mark Gordon, utilities would file wildfire mitigation plans with the Wyoming Public Service Commission, including schedules for vegetation management and standards for de-energizing power lines during hazardous conditions.

If a wildfire is linked to a utility, lawsuits would have to prove that economic losses were due to the utility violating its own wildfire mitigation plan. Utilities would remain liable for negligence, malice and criminal intent.

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The legislation would limit lawsuits over economic losses to a four-year window, and individual would not be able to recover noneconomic damages such as for pain and suffering unless their claim is related to someone’s injury or death in a fire.

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