Utility Dive Highlights Takeaways from Brattle Whitepaper on Managing Wildfire Financial Risk for Utilities
A recent Utility Dive article summarized key takeaways from a Brattle whitepaper that offers insights into the current landscape of wildfire liability and its impacts on investor-owned utilities (IOUs), particularly in light of current climate conditions and evolving legal and regulatory standards.
The article notes that recent extreme weather events, such as the Eaton and Palisades fires in Southern California, necessitate a change in how lawmakers, regulators, and courts think about wildfires. According to the Brattle whitepaper, cost allocation for utility wildfire liability should be based on regulatory criteria, not legal determinations, given that there are regulatory limits on how much utilities may spend on wildfire mitigation.
The full whitepaper, “Wildfire Financial Risks for Utilities: Proactive Management, Regulatory Policy, and Strategy Recommendations,” is available on the Brattle website, and the full Utility Dive article, “Shareholder earnings should be default source for wildfire costs: Brattle,” is available below.
