PacifiCorp, a utility owned by Warren Buffett's Berkshire Hathaway Inc., must face a lawsuit over claims that its hydroelectric dams in the U.S. Northwest pollute the Klamath River and harm fish, a federal court said.

PacifiCorp had sought to have the lawsuit stayed pending the outcome of a relicensing of the dams at the Federal Energy Regulatory Commission, U.S. District Judge William Alsup said in the Aug. 16 ruling. The suit was filed by American Indians, fishermen and groups including environmental advocates Klamath Riverkeeper.

Alsup also denied a request that PacifiCorp be required to operate the dams in a manner that would not promote a type of algae harmful to fish, saying the request was based on state law that is trumped by federal rules.

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The groups suing PacifiCorp have alleged the utility's operation of the dam has exposed the public to toxins, economically harmed fishermen and reduced property values.

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