The Phase III Hearing on DAO Docket Issues regarding RMP's Rate Case took place in Utah on March 23, 2025, focusing on wildfire risk assessments across various states, including Utah. The discussions centered around a report from Verisk, which provides data on wildfire risks in 13 states, including specific metrics for Utah.

During the hearing, it was confirmed that Utah is listed in the Verisk report, which categorizes wildfire risk into several measures. Notably, the report indicates that 77% of structures in Utah are at negligible risk of wildfire, while 6% are classified as being at high to extreme risk. The data suggests that Utah's wildfire risk is higher than that of seven other states in the report based on these criteria.

The testimony revealed that the increasing severity of wildfires in Utah poses a significant financial threat to insurers, a point that was acknowledged by the witnesses. However, there was no indication in the report that Utah has a relatively low wildfire risk compared to other western states.

The discussion also highlighted the importance of understanding the difference between "wildfire peril risk" and general "wildfire risk" from an insurance perspective. The term "peril" specifically refers to the occurrence of wildfires, while "risk" encompasses a broader range of factors.

Furthermore, the hearing examined the allocation of insurance premiums based on various exposure measures, such as the number of transmission and distribution miles in high fire risk areas. Despite Utah's high ranking in several exposure metrics, the analysis suggested that Utah should only be allocated approximately 1.8% of the total premium allocation, a figure that surprised some participants given the state's high exposure levels.

The meeting concluded with a reaffirmation of the credibility of Verisk's data, which is widely used in the insurance industry for rate setting and risk assessment. The models take into account various factors, including geography and climate change, to provide a comprehensive view of wildfire risks.

Overall, the hearing underscored the complexities of assessing wildfire risk and its implications for insurance premiums in Utah and other states, highlighting the need for accurate data in determining financial responsibilities for wildfire-related damages.