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Senate bars utilities from passing wildfire liability costs to ratepayers, restricts shareholder payouts until judgments paid
Summary
The Senate passed SB 926A to prevent electric companies found negligent in causing wildfires from recovering those costs from customers and to block distributions such as dividends or stock repurchases until court judgments are satisfied.
The Oregon Senate on Wednesday passed Senate Bill 9 26 A, legislation aimed at preventing electric companies from shifting the cost of negligence-related wildfire damages onto ratepayers and at denying certain shareholder payouts until companies satisfy court judgments.
Senator Tim Brzezinski, closing debate on the bill, said the measure "prohibits an electric company from paying or distributing dividends, income, interest or profits, or paying, distributing or repurchasing stock" if the utility owes debts on judgments finding that a wildfire resulted from the company's negligence. Brzezinski told colleagues these restrictions are intended to ensure victims receive court-ordered awards rather than the utility using ratepayer dollars to fund litigation or shareholder returns.
Sponsor Senator Brock Smith described the bill as a response to a pattern of catastrophic wildfire losses and litigation. He said the bill removes the ability of an investor-owned utility to recover from customers costs tied to negligence-based wildfire judgments. In his remarks he cited media reporting and juries that had found negligence or recklessness in 2020 fires and told senators that some victims had waited years for any recovery.
Senator Jeff Golden and others emphasized the human impact of long delays in settlements, calling the legislation a targeted response to recent court findings. Senator Alexa Gerard recounted personal experience as a plaintiff in a class-action lawsuit related to 2020 wildfires in her region and urged colleagues to consider the balance between corporate profitability and the hardship faced by small communities.
Senator Noah Nash described the bill as a technical fix to allow in-stream leasing flexibility in a different measure he was sponsoring earlier in the day; his remarks were not central to SB 926 but part of the day's watershed-related discussion.
On the floor, supporters framed the bill as preventing investor-owned utilities from recovering negligence-related costs through customer rates and ensuring victims are made whole. Opponents and some utilities warned the measure could affect reliability and financing; several senators said they had received communications from utility interests opposing the bill.
The bill passed final passage on a recorded roll call; the clerk declared SB 9 26 A to have received a constitutional majority. Senate debate and the sponsor's closing remarks noted the bill also prohibits the utility from repurchasing equity or making other shareholder distributions while judgments remain unpaid.
The floor debate included testimony and personal accounts from senators representing fire-affected districts and references to court findings and media reporting. The bill now moves forward under legislative procedures.
