A major utility company owned by billionaire Warren Buffett’s investment empire is offloading nearly $2 billion worth of power generation facilities and infrastructure as it grapples with potentially catastrophic wildfire-related lawsuits.
PacifiCorp, which operates under Berkshire Hathaway’s umbrella, announced Tuesday it will transfer its Washington state operations to Portland General Electric in a $1.9 billion deal. The massive transaction stems from mounting financial pressures tied to Oregon wildfire litigation that threatens the company’s cash flow.
The sale package encompasses significant energy infrastructure across central and southern Washington, including the Chehalis natural gas facility, the Goodnoe Hills wind farm, two Marengo wind installations, and an extensive network of 4,500 miles of power lines. Portland General Electric will inherit approximately 140,000 customers spanning roughly 2,700 square miles of territory.
Manulife Investment Management will acquire a 49 percent ownership interest in the Washington utility operations, according to Portland General Electric officials. Regulatory approval processes at both federal and state levels are expected to delay the transaction’s completion for at least twelve months. Both companies maintain their headquarters in Portland, Oregon.
The financial strain driving this asset sale traces back to devastating September 2020 wildfires in Oregon. Thousands of residents have filed lawsuits alleging PacifiCorp’s negligence in maintaining active power lines during dangerous windstorm conditions directly caused four major fires.
Legal damages sought in these cases could reach $52 billion, though PacifiCorp expects the final settlement amounts will likely fall below that figure. Court proceedings may continue through 2028. The utility has petitioned Oregon’s state appeals court to overturn class-action status and eliminate compensation requirements for victims’ emotional trauma.
In its official announcement, PacifiCorp described facing “extraordinary pressure” from conflicting regulatory approaches across the six western states where it provides service. These policy differences have undermined the company’s financial stability, available cash reserves, and credit worthiness.
This divestiture represents an unusual move for Berkshire Hathaway, which rarely sells major business units or substantial asset portfolios. Greg Abel assumed the chief executive role at the Omaha-based conglomerate on January 1, replacing legendary investor Warren Buffett. Abel previously managed PacifiCorp’s parent company, Berkshire Hathaway Energy, for approximately ten years.
“PacifiCorp is navigating a complex set of financial and regulatory pressures,” the utility stated. “The sale is an important step in strengthening the company’s overall position and simplifying operations.”
The transaction excludes PacifiCorp’s hydroelectric power generation facilities located in Washington state.
As industrial clients and data processing centers drive unprecedented electricity demand growth, utility companies nationwide are actively pursuing additional power generation and transmission infrastructure to meet increasing consumption.
During a conference call with investors, Portland General Electric CEO Maria Pope described the acquired PacifiCorp facilities as “a valuable mix of natural gas and wind resources that provide safe, reliable and affordable power.”
Portland General Electric also reported adjusted fourth-quarter earnings of $53 million, equivalent to 47 cents per share. Wall Street analysts had projected earnings of 63 cents per share, according to LSEG data.
