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Western utilities are trying to limit their liability when they spark wildfires

Clouds of white smoke fill a blue sky with pine trees in the foreground.
Hannah Habermann
/
Wyoming Public Media
The Fish Creek Fire burns in Western Wyoming this fall. According to Shawn Taylor, who represents the state's energy co-ops, the utilities are one wildfire away from going bankrupt.

Electricity providers around the West have been sued for billions of dollars for sparking catastrophic wildfires. Some have even gone bankrupt after power lines sparked flames.

In Wyoming, there’s concern the same could happen, ultimately impacting consumers.

“It doesn't do anybody any good if your utility goes bankrupt,” said Shawn Taylor, executive director of the Wyoming Rural Electric Association.

He’s trying to get lawmakers to pass a bill limiting liability for utility groups — if they have plans to mitigate fires. That could include efforts like making sure electricity poles are strong.

“Maybe putting some fire retardant material around the poles,” Taylor added. “It's trimming trees. It's clearing vegetation along the rights of ways.”

Even if utilities do this, they could still be responsible for property damage and lost production.

“So if you're a rancher or farmer and your hayfield gets burned up, they'd still be able to recover those lost economic damages,” he said.

Though utilities would be on the hook for property damage and economic loss, they wouldn’t have to cover things like emotional distress and pain and suffering, which has accounted for a large part of the lawsuits.

Utah has passed a similar law, and Taylor says he’s working with people in Idaho, Colorado, Nevada and New Mexico to get measures in state capitols.

Some states have also created special funds to help pay fire victims, so utilities don’t go bankrupt.

Utility companies in California and Colorado have also been shutting off power when fire risk is high, but this has also caused problems.

In Wyoming, a legislative committee focused on minerals, business and economic development will consider the liability bill on Dec. 2. So far it has broad support from stakeholders and could be introduced in the upcoming legislative session.

This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Colorado and KANW in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting.

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Hanna is the Mountain West News Bureau reporter based in Teton County.