In a pivotal moment during the Phase III Hearing on DAO Docket Issues in Utah, discussions centered on Pacificorp's liability insurance practices, revealing significant changes following a landmark legal verdict. Historically, Pacificorp has relied on Berkshire Hathaway's aggregated insurance to manage its excess liability insurance (ELI), allowing the company to benefit from shared costs and expertise. However, this practice shifted dramatically in 2023, the same year a court found Pacificorp grossly negligent in causing devastating fires.

During the hearing, it was confirmed that Pacificorp did not purchase separate ELI coverage until 2023, a decision that marked a departure from its long-standing strategy of leveraging Berkshire Hathaway's resources. The testimony highlighted that, prior to this change, Pacificorp had consistently opted for aggregated insurance, which allowed it to share costs with other subsidiaries.

The implications of this shift are profound. With the new separate coverage, Pacificorp loses the ability to benefit from Berkshire Hathaway's size and expertise, as the insurance purchased is solely for its own interests and does not extend benefits to other subsidiaries. This change raises questions about the company's risk management strategy moving forward, especially in light of the recent legal findings that have put its practices under scrutiny.

As the hearing continues, stakeholders are keenly observing how these developments will affect Pacificorp's operations and insurance strategies in the future. The decision to move away from aggregated coverage could signal a new era for the company, one that may require a reevaluation of its risk exposure and financial planning.