Wildfires and Utility Liability: Complying With New Regulations, Impact of PG&E Litigation

Wildfires have plagued multiple states resulting in complex litigation implicating utility companies and state and local governments. Attorneys within the energy sector must have an in-depth understanding of new state regulations impacting utility project development, safety and maintenance, along with new federal standards and guidance.

Utilities face the risk of being subject to mounting wildfire claims stemming from transmission lines or other infrastructure. Recently, PG&E filed bankruptcy in the face of billions of dollars of potential liability resulting from a link between its transmission infrastructure and the ignition of wildfires in California. State regulators have launched investigations into the role of utility companies play in contributing to wildfires and assess their fire mitigation plans to ensure compliance with state law.

Some western states impose strict liability against utility companies if proven that the utility's equipment caused the wildfire, while other states allow claims for negligence focused on failures in utility construction, safety or maintenance. Also, the federal government can pursue claims for negligence, trespass, and fire-suppression costs if a fire burns government lands or national forests.

Listen as our panel discusses the implications of the PG&E lawsuits on utility companies, recent state regulations, impact to power purchase agreements, and offer guidance in pursuing or defending claims.