The Phase III Hearing on DAO Docket Issues regarding RMP's Rate Case took place in Utah on March 23, 2025, focusing on the ongoing James litigation and its implications for Pacific Corp. The discussions highlighted the potential financial impacts of the litigation on the company and its insurers.

Key points included an examination of the James litigation, which found Pacific Corp grossly negligent in causing wildfires. The ongoing trials related to this case are expected to influence the insurance industry's assessment of risk exposure for utilities, particularly in light of the significant jury verdicts associated with wildfire claims. The hearing underscored that while the James case is notable, it is part of a broader context of wildfire-related litigation that Pacific Corp faces.

Witnesses discussed how the outcomes of these cases could materially affect Pacific Corp's financial condition and its ability to secure liability insurance. Insurers are likely to consider these factors when determining policy premiums, as the litigation environment remains uncertain and potentially adverse.

The hearing also addressed the differentiation between the James case and other wildfire litigations, emphasizing that while James is a significant event, it is not the sole factor influencing insurance premiums. The discussions concluded with a recognition that insurers take into account a variety of risk factors, including past jury verdicts, when evaluating coverage for Pacific Corp.

Overall, the hearing highlighted the complexities of litigation risks for utility companies and the ongoing challenges they face in managing their financial and insurance landscapes in the wake of significant legal judgments.