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 Office of Electricity 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.
Review of Utility Industry Trends
The Burn Rate: How Wildfires Affect Energy Affordability
Wildfire mitigation, liability, and cost recovery pressures are increasingly straining the utility business model. In addition to causing direct damage to utility infrastructure and property, wildfires create substantial financial exposure through third‑party liability and related claims.
This three-part webinar will explore the landscape of utility wildfire costs, how these costs are reflected in utility rates, and potential strategies for improving affordability through cost reduction approaches. It will feature research from Pacific Northwest National Laboratory (PNNL) in this emerging area and bring together industry thought leaders to discuss potential solutions.
Part One: Frame the Problem | Thursday, June 4, 11:00 am–12:00 pm PT
In part one, PNNL will provide an overview of direct and indirect utility costs from wildfire, their scale, how these costs are showing up in utility rates, and how states are balancing their oversight and support. Register Now.
Part Two: Explore Solutions | Thursday, June 11, 11:00 am–12:00 pm PT
In part two, PNNL will present an analysis of potential cost reduction strategies, including utilization of multi-benefit approaches, securitization, and backstop approaches, and will provide an overview of the complexity of charting a path to affordability. Register Now.
Part Three: Industry Thought Leaders | Thursday, June 18, 11:00 am–12:30 pm PT
In part three, PNNL will convene industry thought leaders to discuss the impacts of wildfire on utility business models, seeking their proposals for opportunities to reduce costs and increase energy affordability while comprehensively mitigating risk. Register Now.
Landscape Analysis and Webinar
PNNL hosted a webinar on Tuesday August 19, 2025 to share the research on key trends in wildfire-related risks to the utility business model, actions that utilities and state policymakers are taking to address some of these risks, and emergent questions for future work.
RESOURCE LIBRARY
Since publication of the landscape analysis in August 2025, PNNL has issued memos related to costs and insurance, as well as a seminal report on utility wildfire mitigation. Visit the library.
Technical Advisory Committee
To ensure the analysis is grounded and relevant, PNNL convened a Technical Advisory Committee (TAC) composed of representatives from utilities, financial institutions, regulators, insurers, and investors. The TAC provides strategic input and helps guide external engagement. Members will serve under a formal charter and participate on a voluntary basis.
TAC Members
- TAC Chair: Ali Arabnya, Director, Infrastructure Finance & Climate Risk, Quanta Technology
- Andy Bochman, Senior Grid Strategist, Idaho National Laboratory
- Phillip Bruner, Professor of Practice, Sustainable Finance, University of Washington
- Justin Cruise, Director of Strategy Execution & Enterprise Risk Management, Rappahannock Electric Cooperative
- Campbell Delahoyde, Senior Program Director, Energy Security and Resilience, National Association of State Energy Officials
- Paul Dyson, Director and Lead Analyst Americas Public Finance, S&P Global Ratings
- Kyra Howe, Utility Analyst, Hawaii PUC
- Becky Li, Manager, Carbon-Free Electricity, RMI (formerly Rocky Mountain Institute)
- Cara Peterman, Director, Corporate Treasurer, Puget Sound Energy
- Jody E. Raines, Senior Cybersecurity Policy Specialist, Center for Partnerships and Innovation, National Association of Regulatory Utility Commissioners
- Anna Marie Will, Insurance Program Manager, Treasury, Sacramento Municipal Utility District