During the recent Phase III Hearing on DAO Docket Issues in Utah, significant discussions emerged regarding the financial implications of Pacific Corp's insurance strategies. A key point of contention was the company's payment of loss premium assessments to insurers. While some parties criticized this practice as a short-term cost, it was clarified that such assessments ultimately lead to lower overall rates in the long run. This approach reflects the company's claims history rather than any negligence.

Another critical topic was the allocation of excess liability insurance costs, particularly concerning policies covering states like California and Oregon. Some argued that these costs should not be shared with Utah customers, but it was explained that the company's insurance policies do not segregate coverage by state. A large claim in California, for instance, could deplete resources available for claims in Utah, making it essential for the company to maintain comprehensive coverage.

Concerns were also raised about the prudence of the company's insurance expenditures, with suggestions that self-insurance or alternative strategies should have been pursued earlier. However, representatives from Pacific Corp defended their approach, emphasizing their commitment to negotiating the best premiums and coverage levels. They highlighted the company's proactive measures, including investments in wildfire mitigation, which have positively influenced insurance negotiations.

As the hearing progressed, the focus remained on the company's efforts to manage rising insurance costs while ensuring adequate coverage for all states involved. The discussions underscored the complexities of insurance procurement in a challenging market, with plans for future mechanisms to address these issues being explored. The meeting concluded with a break before moving into cross-examination, indicating the ongoing scrutiny of Pacific Corp's insurance practices.