From Investing.com: 2024-05-04 13:36:18

Warren Buffett’s Berkshire Hathaway Energy faces potential liability from wildfires, with costs expected to rise due to climate change. The PacifiCorp unit could see billions in projected losses, impacting Berkshire’s bottom line. Shareholders may seek clarity at the annual meeting in May.

PacifiCorp’s projected wildfire losses have reached $2.4 billion, with claims escalating to $30 billion. Berkshire Hathaway Energy’s profit dropped 40% in 2023, impacting its parent company’s earnings. PacifiCorp faces years without dividends, affecting Berkshire’s ability to fund operations.

Berkshire Hathaway Energy could face significant financial strain from ongoing litigation, potentially affecting its generating and transmission assets. While bankruptcy is not foreseen, Berkshire may limit support if damages become unsustainable long-term. States are exploring solutions to mitigate utilities’ risk of going bankrupt from wildfires.



Read more at Investing.com: Analysis-Warren Buffett’s PacifiCorp utility singed by wildfires By Reuters