Xcel to pay $640 in Marshall Fire settlement

Electric utility admits to no fault in causing December 2021 fire

by Allen Best

Xcel Energy, Qwest Corporation, and Teleport Communications America have reached agreements in principle to settle all claims asserted by subrogation insurers, the public entity plaintiffs, and individual plaintiffs.

Xcel Energy, through its subsidiary, Public Service Company of Colorado, expects to pay $640 million related to these settlements. Of that, $350 million is to come from insurance coverage and none from its customers.

The agreements in principle remain subject to final documentation and individual plaintiffs opting in to the agreement negotiated and recommended by their counsel.

Xcel Energy does not admit any fault, wrongdoing, or negligence in connection with this resolution.

“Despite our conviction that PSCo equipment did not cause the Marshall Fire or plaintiffs’ damages, we have always been open to a resolution that properly accounts for the strong defenses we have to these claims. In resolving all liability from the claims, this settlement reinforces our longstanding commitment to supporting the communities we serve,” said Bob Frenzel, chairman, president and CEO of Xcel Energy, in a statement released by Xcel.

“We recognize that the fire and its aftermath have been difficult and painful for many, and we hope that our and the telecom defendants’ contributions in today’s settlement can bring some closure for the community.”

The front steps in Superior remained but the house itself was gone after the Marshall Fire of December 2021. Photo/Allen Best. Top: a housing site in Louisville. Photo/ Robert Castellino

Xcel has developed a comprehensive strategy to reduce wildfire risk and improve grid resilience. See more about that plan here. The 2025-27 Wildfire Mitigation Plan includes investments in system resilience, improved situational awareness of high-risk fire scenarios, enhanced operations and maintenance practices to mitigate fire risk and increased engagement with state and local agencies.

This plan, which is informed by inputs from local communities and governments, includes specific improvements for Boulder County, including undergrounding certain power lines and modernizing energy delivery infrastructure.

The Marshall Fire started December 30, 2021, from an ignition on the Twelve Tribes property in Boulder County, when embers from an earlier debris burn reignited. The fire, fueled by high winds, spread quickly to the towns of Louisville and Superior. A second ignition occurred nearby approximately 80 minutes later.

The plaintiffs filed lawsuits seeking billions of dollars in damages against Xcel Energy and the telecom defendants in connection with the second ignition. Xcel Energy disputes that its equipment was involved in the second ignition.