This wouldn’t be the first time that a wildfire has financially devastated a utility. In 2019, Pacific Gas & Electric, a utility that provides electricity for much of California, declared bankruptcy after being held liable for $30 billion in wildfire damages caused by the company’s powerlines. In June, Colorado officials released a report laying at least partial blame on Xcel Energy, a Colorado electric utility, for fires that destroyed more than 1,000 homes in Boulder County in 2021. The company has since said that it faces at least eight lawsuits stemming from the fire and that the potential damages could exceed what its insurance will cover.