House Bill 490 says if a utility outlines ways to reduce the risk of its equipment causing a wildfire, it cannot be held legally responsible for the fire.
Kalispell Republican Amy Regier is the bill’s sponsor. She says it's needed to protect utility companies from lawsuits that could cause them to go bankrupt.
"If a utility shows they substantially followed their wildfire mitigation plan at the location where the fire started, the law will presume that they acted reasonably, unless the plaintiff can present evidence to the contrary."
The bill was supported by electric cooperatives from across the state, as well Montana’s largest utility company. Alan Olsen, NorthWestern Energy’s Director of Government Affairs spoke in support of the bill, which he helped write.
"We have an obligation to serve. We have that obligation. Sometimes things happen."
Wildfires are a growing threat across much of the country as human-caused climate change increases fires frequency and intensity.
According to data from Headwaters Economics, a third of homes in Montana are located in areas with moderate to high wildfire risk.
NorthWestern Energy says its power lines may have started a 2021 fire that ripped through the town of Denton igniting over 10,000 acres and destroying 25 homes.
NorthWestern Energy is still involved in litigation over the fire. Mike Weinheimer’s fourth-generation family farm burned down.
"This is a handout to utilities at the expense of Montana landowners," Weinheimer said.
Some of the state’s largest insurance companies also spoke against the bill, because it would make it harder for them to recover costs associated with fire damages. They said that could ultimately lead to homeowners paying higher premiums, or could cause companies to stop insuring homes in Montana. The state auditor’s office opposed the bill for similar reasons.
The Public Service Commission was also opposed, because the agency said it would struggle to evaluate the utilities’ wildfire mitigation plans under this bill.
