Berkshire Hathaway Energy Co.’s PacifiCorp has been battered in an unprecedented court fight over the utility’s failure to prevent massive wildfire destruction in Oregon.

The largest grid operator in the western US faces the risk that it will have to pay billions of dollars in damages following a jury’s finding that it was grossly negligent in a series of fires in September 2020. The ongoing litigation has also spooked investors, hurting PacifiCorp bonds and the company’s credit rating.

The high stakes PacifiCorp faces in the final chapter of its battle with fire victims in 2024 shows why wildfires now ...