Wildfire Workbook Foreword

Hon. Ann Rendahl
Commissioner, Washington Utilities and Transportation Commission
Chair – Wildfire Working Group

The financial risk of catastrophic fire ignited by utility infrastructure, whether a wildland fire, grassland fire, or urban conflagration, impacts utilities, their customers, and state regulators, not only in the Western United States, but also in other areas of the United States. Recent significant fires in Hawaii, New York, North and South Carolina, North Dakota, Texas, and California have demonstrated that such fires can occur anywhere, under certain conditions, with devastating consequences. The impact of this risk on utility credit ratings, the availability and cost of premiums for liability and property insurance for utilities and all property owners, as well as increased costs of utility service due to wildfire mitigation expenses, is increasing costs for utilities across the country, as well as rates for customers, at a time when costs and rates are increasing due to other factors.

NARUC’s Wildfire Workbook is a resource for state commissioners and staff, as well as state energy offices, policy makers, and utilities, both investor-owned and consumer-owned, to rely on when faced with the mitigation measures and costs used to address fire ignited by utility infrastructure. It addresses in different chapters topics such as mitigation plans, cost recovery, community engagement, financial tools, and insurance impacts. Each chapter includes extensive links to wildfire plans, statutes, rules, databases, reports, and emerging technologies. The Wildfire Workbook will be updated over time as more states and utilities develop plans and investments to address the financial risk of wildfire.

I extend my thanks and great appreciation to all those who contributed to getting this project off the ground and to completion.  Your efforts on this Workbook will provide assistance and support to your colleagues in other states as they face the daunting task of addressing the financial risk of wildfires for utilities.