Oregon passes SB 926 to hold electric companies accountable for wildfire negligence

In a significant move to hold electric companies accountable for wildfire damages, the Oregon State Legislature has introduced Senate Bill 926 on April 18, 2025. This legislation aims to address the growing concerns surrounding the role of utility companies in igniting wildfires, particularly in light of recent devastating fire seasons across the state.

Senate Bill 926 establishes a framework for civil liability, mandating that if a court finds an electric company negligent in causing a wildfire, the company will be responsible for covering litigation costs, damages, and any associated expenses. Notably, the bill prohibits these companies from distributing dividends or profits to shareholders while they owe debts related to wildfire judgments, effectively ensuring that funds are directed towards compensating affected communities rather than enriching stakeholders.

Key provisions of the bill include a fixed interest rate of nine percent per annum on judgments related to wildfire negligence, which will accrue from the date the fire ignited. Additionally, damages awarded to plaintiffs cannot be offset by any other compensation they may receive, ensuring that victims are fully compensated for their losses.

The bill specifically targets electric companies serving over 25,000 retail consumers in Oregon, reflecting a focused approach to regulating larger utilities that have a more significant impact on wildfire risks. This legislation applies to wildfires ignited on or after January 1, 2020, and includes stipulations for judgments issued between January 1, 2020, and January 1, 2025.

While the bill has garnered support from environmental advocates and community leaders who argue that it is a necessary step towards corporate accountability, it has also faced opposition from utility companies concerned about the financial implications and potential for increased litigation. Critics argue that the bill could lead to higher electricity rates as companies may pass on the costs of litigation and damages to consumers.

The implications of Senate Bill 926 are profound, as it not only seeks to protect communities from the financial burdens of wildfire damages but also aims to incentivize electric companies to adopt safer operational practices. Experts suggest that this legislation could set a precedent for other states grappling with similar wildfire issues, potentially reshaping the landscape of utility regulation nationwide.

As the bill progresses through the legislative process, its future remains uncertain. However, its introduction marks a pivotal moment in Oregon's ongoing battle against wildfires and the accountability of those whose actions contribute to such disasters. The outcome of this legislation could significantly influence both the utility industry and the communities it serves, highlighting the critical intersection of environmental policy and corporate responsibility.