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Electric Companies in the Western U.S. Facing Lawsuits Over Failure to Prepare for Extreme Weather
Hawaiian Electric Sued for Alleged Negligence in Devastating Wildfires
Industry Slow to Adapt to Climate Change Poses Existential Threat to Utilities
Aging Infrastructure and Increasing Disasters Amplify Risk
Expensive Solution Needed to Reinforce Electric Infrastructure Against Extreme Weather
Industry Investments Are Being Made, But Challenges Remain
Electric Companies in the Western U.S. Facing Mounting Lawsuits
Electric companies in the western U.S. are dealing with a growing number of lawsuits accusing them of negligence in failing to prepare for extreme weather conditions. These failures have resulted in catastrophic wildfires, causing significant loss of life and billions of dollars in damages.
Hawaiian Electric Faces Allegations of Negligence
Hawaiian Electric is the latest utility to face allegations of negligence. Recently, Maui County filed a lawsuit against the power company for damages resulting from the devastating wildfires on Maui. The lawsuit claims that Hawaiian Electric failed to shut off power despite a “red flag” warning from the National Weather Service regarding increased fire risk due to high winds and drought conditions.
Utility Companies’ Failure to Prepare
The suits against Hawaiian Electric, along with previous lawsuits against other companies such as Pacific Gas & Electric and Berkshire Hathaway’s PacifiCorp, highlight the failure of these companies to take necessary precautions. Despite high winds and dry conditions that increase the risk of wildfires, the companies did not shut off power, leading to devastating consequences.
A Slow Industry to Adapt
The electric industry has been slow to adapt to the changing climate, resulting in catastrophic fires and significant losses. Utilities are not doing enough to harden their infrastructure against extreme weather and clear brush to prevent fires. Despite the urgent need for change, the industry has been resistant due to financial incentives and a slow pace of change.
Lives Lost and Billions in Damages
The consequences of the failures to adapt swiftly to climate change have been significant. The Maui fires alone have resulted in the death of over 100 people, the destruction of the historic town of Lahaina, and economic losses estimated to be around $6 billion. Credit agencies have downgraded Hawaiian Electric’s credit rating, and the company could face over $3.8 billion in liability.
Aging Infrastructure and Increasing Disasters
The problem of aging infrastructure is prevalent throughout the industry. Most transmission and distribution lines in the U.S. have exceeded their intended lifespan. This aging infrastructure, coupled with the increasing number of disasters caused by climate change, poses significant risks. Decaying utility poles and the aboveground nature of the infrastructure contribute to the risks of toppling during high winds and sparking wildfires.
Expensive Solutions Needed
The most effective solution is to install transmission lines, switchgear, and transformers underground. However, this solution comes at a high cost, roughly ten times more expensive than aboveground installations. The U.S. is facing an investment shortfall of $338 billion in electric infrastructure by 2039.
Industry Investments and Challenges
The electric industry has made substantial investments in upgrading and maintaining infrastructure over the past decade, amounting to $1 trillion. However, challenges remain in terms of adapting to extreme weather and mitigating risks. While efforts are being made, the risk factor can never be reduced to zero. The industry needs to continue driving down risk and preparing for extreme weather events.
