As I write this column in early September, I’m crossing my fingers that Colorado residents and communities get through the rest of 2024 without being impacted by more wildfires. Some of this year’s wildfires have caused significant damage to homes and other structures in addition to the loss of life.
Wildfires are always top of mind for Colorado’s electric co-ops. We have witnessed numerous devastating wildfires over the last 10 years or so, with the worst fires in Colorado history taking place during that period. While none of those fires were caused by electric co-op facilities, we’re always concerned about the possibility that co-op lines or other equipment could spark a fire in co-op territory.
Regardless of the ignition source of a wildfire, as we have seen all too often, the consequences can be devastating. While our first concern is always for the safety of people and property, we are also concerned about the ability of electric co-ops to provide electricity in the event power infrastructure is damaged or destroyed. Every electric co-op in the state takes very seriously its responsibility to provide the power that is needed to sustain the folks who live in co-op service territories.
As I’ve noted in this space many times, Colorado’s electric co-ops go to great lengths to reduce the risk of co-op facilities igniting a wildfire. By way of undergrounding lines, installing fire-resistant poles and wires, and changing operating protocols, co-ops and other electric utilities in Colorado are investing millions of dollars to help keep our communities safe. Co-ops are also deploying new technology that will help assist in the early detection of wildfires.
Even with these investments, given the thousands of miles of power lines that cross the state, there is always the possibility that a fire could be caused by co-op equipment.
You may think that co-ops and other utilities are protected by insurance policies that would pay for claims brought in the event of a fire that caused damages or injuries to the public. That’s just not the case. Insurance companies across the country are either refusing entirely to provide insurance against these risks or are charging premiums that cost nearly as much as the policy coverage. Given the extraordinary damages that have resulted from fires in California and other states that were caused by power lines, insurance companies have basically decided not to insure against those risks.
Knowing that the wrong spark in the wrong place could literally bankrupt a co-op, we’re exploring legislative solutions that might give co-ops some liability protection. That protection would not come easily; it would only be available to those co-ops or other electric utilities that could demonstrate that they have taken all reasonable steps to mitigate the risk of a wildfire. If a co-op has taken all reasonable measures to reduce the risk that its facilities could cause a wildfire, we believe that those co-ops should receive some protection from legal liability.
You will likely be hearing more about this issue in the coming months as we work with our member co-ops to educate the public and the Colorado General Assembly. CREA and its members believe that wildfires pose an existential risk to co-op communities and to the ability of co-ops to serve those communities. We hope to find a way to mitigate that risk in the coming months and will keep you apprised of our progress.
Kent Singer is the executive director of CREA and offers a statewide perspective on issues affecting electric cooperatives. CREA is the trade association for 21 Colorado electric distribution co-ops and one power supply co-op.