The Growing Risk of Wildfires
PrintWildfire Mitigation Requires Planning & Collaboration
By Scott Flood
Wildfires have always been part of North America’s ecosystems. However, the risks to communities and electric utilities have risen in recent years due to declining forest and public land health, severe weather, and increased urban wildland interface. This risk is compounded for electric utilities because dry vegetation ignites easily when it contact with downed power lines or sparks from equipment, and wind creates incidents that start fires and accelerate the spread of flames.
While there’s a common perception that wildfires are only a problem out West, recent headlines about wildfires along the Carolina coast, on Long Island, and even in the Milwaukee suburbs confirm they’re a potential threat everywhere. When the Forest Service proposed—but subsequently withdrew—a 2024 rule about forest conservation, it cited a study that wildfire risk is growing in the east as fire-resistant species, such as oaks in Eastern forests, are giving way to more combustible species, such as red maples.
In several high-profile cases, investigations cited power infrastructure as the cause of wildfires, making the owners of that infrastructure liable for damage. The Western Fire Chiefs Association reported that nearly 1/5 of wildfires from 2016 to 2020 were triggered by electric power infrastructure. Even if an electric utility isn’t directly responsible for a wildfire, it may find itself compelled to pay for damages under federal strict liability statutes.
“Suppose there’s a shed on a piece of private property, and a strong wind blows the shed into a co-op’s power lines or other infrastructure, causing a fire in a national forest,” says Megan Olmstead, regulatory affairs director for the National Rural Electric Cooperative Association. “Even though the co-op had no control over what the wind did, it may still be on the hook for strict liability and the costs of suppressing the fire and any damage to timber and other natural resources. If you’re operating on Forest Service or Bureau of Land Management lands, you could face between nearly $2,000,000 and upward of $3 million dollars in damages per incident—and that is strict liability alone.”
Given that responsibility, it’s no surprise that liability insurance premiums for wildfire damage have increased, and coverage is becoming unavailable in some states. Because insurers spread risk across all their policyholders, even electric utilities facing minimal wildfire risk are seeing higher premiums.
“Our focus is advocating before the federal government to resolve challenges that limit co-op wildfire mitigation efforts, including arduous permitting processes for vegetation management and grid-hardening projects,” Megan says.
At times, it can take several months or even years for federal regulators to approve the removal of a single tree that poses a danger to power lines. Even then, the threat is not removed from the forest or public land.
“In some cases, once co-op crews remove the trees, federal law requires them to leave the timber on the forest floor, which creates more of a fuel load for fires,” Megan says. “Co-ops also face challenges acquiring approvals to simply access their power lines.”
Even basic grid-hardening strategies, such as undergrounding a line or replacing an existing wood pole with a metal one, can trigger a years-long environmental review process.
Bipartisan legislation moving through Congress would allow electric utilities to step up their mitigation efforts by eliminating delay-causing regulatory roadblocks. The Fix Our Forests Act is designed to expedite federal approvals, making it substantially easier for utilities to harden their grids against wildfires and remove hazardous vegetation that fuels blazes. The act would also limit exposure to frivolous lawsuits that often complicate those efforts. Among its many helpful provisions is permission for utilities to remove vegetation within 150 feet of power lines, rather than the current 10-foot limit.
NRECA’s team is working directly with federal agencies to help utilities develop strategies for limiting liability.
“If your co-op creates a forest operating agreement with the U.S. Forest Service, they’ll cap your strict liability amount per incident,” Megan says. “We’re working to promote similar concepts across the other federal land management agencies.”
As the risk of wildfire grows, more utilities are developing wildfire mitigation plans.
“Plans spell out the mitigation process co-ops employ to reduce risks to their systems, including vegetation management and grid hardening projects,” she says. “Many co-ops also are increasingly navigating the complex decision-making process related to whether Public Safety Power Shutoffs are necessary or helpful in their systems, then determining how that process will work during severe weather.”
Researchers and electric utilities are investigating new technologies for the detection of and response to wildfires, but for now, wildfire mitigation planning is crucial. The process is most effective when it involves a collaborative approach with all stakeholders.
“It’s important to engage with land management agencies, state and local government, local businesses, and the agricultural community to discuss the risks and how everyone should respond if a fire occurs,” Megan says. “By working together, they can focus on key factors, such as community hardening and minimizing damage.”
