One Spark Away: Why Liability Reform Matters

Wildfires are a persistent, growing threat in our region.

We’ve seen firsthand the devastation they bring, standing shoulder-to-shoulder with our members during the High Park and Cameron Peak fires, while helping rebuild in the aftermath.

At Poudre Valley REA, we take wildfire risk seriously. Every day, we work to keep our system safe. We’ve invested millions into robust wildfire mitigation efforts such as vegetation management, system hardening, fire-retardant materials, and emergency response planning. These efforts, and many more, protect our homes, lands, and lives.

But here’s the hard truth: even when we do everything right, one spark could bankrupt your cooperative.

The Challenge

Across the West, utilities have faced uncapped litigation claims after wildfires, paying millions or even billions in damages. Some have gone bankrupt. In all cases, rates have dramatically increased to cover costs.

For cooperatives like PVREA, that’s an impossible scenario. We don’t have deep pockets. We operate on an at-cost basis, which means every dollar spent comes directly from our members.

Rising insurance premiums, fueled by the risk of uncapped litigation, make it increasingly difficult to secure adequate coverage. In fact, some carriers are exiting the market entirely, leaving cooperatives exposed.

How Policy Can Help

Colorado’s electric cooperatives, including PVREA, are teaming up with state leaders to develop bipartisan legislation that creates a fair balance.

If a utility adopts and maintains stringent wildfire mitigation plans, they should receive some level of liability protection.

The legislation recognizes the need to make sure homeowners are compensated for damage while also balancing the needs of communities that depend on consistent, affordable electric service.

Limiting exposure to unlimited litigation and establishing damage caps will help keep insurance coverage attainable. For you, that means continued low-cost rates and the safe, reliable electricity you depend on.

We are grateful for the bipartisan leadership of Senator Janice Marchman, who represents nearly 20,000 PVREA households, and Senator Marc Catlin, who are spearheading this effort.

Sen. Marchman and Sen. Catlin were both interviewed to further explain the urgent need for wildfire liability reform. You can read this article by clicking here and turning to pages 14-15.

Your Voice Matters

As Colorado considers these protections, we need you engaged more than ever. Get involved by joining our grassroots advocacy network, Cooperative Voices.

From all of us at your co-op, we wish you a merry Christmas and a happy holiday season. May it be bright, cheery, safe for all, and filled with good tidings.