Subject: PacifiCorp
What should PacifiCorp do? PacifiCorp is facing $46 billion in fire related claims for fires that occurred in 2020 (versus $10 billion in book value), not including doubling or trebling of judgements. Berkshire has stated that the likelihood of such claims holding up is remote.

I've been trying to catch up on all of the different things going on at PacifiCorp related to fire liability. Here's a partial list. Please make additions or corrections.

Actions taken so far:
1. Defend against litigation in progress, and appeal judgements already made.
2. Try to make grid more fire resistant, including covering overhead transmission lines.
3. Ask legislatures to cap damages and create funds to help pay for damages. (Utah has agreed, but so far Oregon has not.)
4. Ask Public Utility Commissions (PUCs) to increase rates to help pay for losses.
5. Cancel some capital expenditures, including previously planned renewable energy projects, and extend planned use period for coal fired plants. (Oregon's PUC has pushed back on the newly amended spending plan, saying that it will make PacifiCorp unable to meet the state's 2021 climate law.)

Berkshire paid $9.4 billion for PacifiCorp in 1996 ($5.1 billion plus $4.3 billion for preferred stock and assumption of debt), and has earned a return on equity of about 10% since. However Buffett stated in the 2023 annual report that PacifiCorp's future could potentially include zero earnings or even bankruptcy.

"Our second and even more severe earnings disappointment last year occurred at BHE. Most
of its large electric-utility businesses, as well as its extensive gas pipelines, performed about as
expected. But the regulatory climate in a few states has raised the specter of zero profitability or
even bankruptcy"

I'm interested in what you think PacifiCorp should do. Personally, as I've stated previously, I think that Berkshire should try to find some out of owning PacifiCorp. Buffett once said that he would not want to own a company that made football helmets, but here we are owning a company that transmits electricity through fire prone forests.