Wildfire risk is reshaping the utility business model in profound and increasingly visible ways. To better understand these shifts, the U.S. Department of Energy’s Grid Deployment Office is supporting Pacific Northwest National Laboratory (PNNL) in providing credible, data-driven insights into the evolving financial and regulatory landscape facing utilities. This effort will highlight key trends such as the rise of self-insurance, expanded liability exposure, increasing insurance premiums and limitations, impacts on cost of capital, asset valuation changes (e.g., accelerated depreciation), and the redistribution of wildfire-related risk—whether through service suspensions, ratepayer impacts, or shifts to taxpayers and governments.

The project is focused on documenting the business realities utilities face in a wildfire-prone environment—not on introducing or elevating new risks. To ensure the analysis is grounded and relevant, PNNL will convene a Technical Advisory Committee composed of representatives from utilities, financial institutions, regulators, insurers, and investors. The Technical Advisory Committee will provide strategic input and help guide external engagement. Members will serve under a formal charter and participate on a voluntary basis.