The Phase III Hearing on DAO Docket Issues regarding RMP's Rate Case took place in Utah on March 23, 2025, focusing on the impact of wildfire risks on utility insurance premiums. Key discussions highlighted the significant differences in insurance costs for utilities based on their wildfire claim history.

Experts noted that utilities with prior wildfire claims face substantially higher premiums compared to those without such experiences. For instance, a Western utility with wildfire exposure and no losses could see a 300% increase in insurance renewal costs, while those with a history of claims might experience increases as high as 1000%. This stark contrast underscores the financial implications of wildfire risks on utility operations.

The meeting also addressed the complexities of insurance policies, particularly how some insurers have begun to separate wildfire risk from general utility coverage. This shift has led to utilities needing to purchase specific wildfire-related policies, which can significantly affect their overall insurance costs and risk management strategies.

Additionally, the discussions touched on the geographical factors influencing wildfire risks. Utilities operating in isolated or rural areas may manage exposures differently than those in more densely populated regions. However, experts cautioned against underestimating the value of rural properties, as they can still pose significant risks in the event of wildfires.

The hearing concluded with a recognition of the evolving landscape of wildfire mitigation strategies and their potential influence on future insurance discussions. As utilities navigate these challenges, the implications for ratepayers and overall service costs remain a critical concern. The outcomes of this hearing will likely shape future regulatory approaches and insurance practices in the region.