Xcel Energy, along with Qwest Corporation and Teleport Communications America, has reached agreements in principle to settle all litigation related to the 2021 Marshall Fire. The settlements address claims from subrogation insurers, public entities, and individual plaintiffs.
The subsidiary Public Service Company of Colorado (PSCo) expects to pay about $640 million as part of these settlements. Approximately $350 million will be covered by remaining insurance, and none of the settlement costs will be passed on to customers. The agreements are subject to final documentation and require individual plaintiffs to opt in as recommended by their counsel.
Xcel Energy maintains that its equipment did not cause or contribute to the fire and does not admit any fault or negligence as part of the settlement. Bob Frenzel, chairman, president and CEO of Xcel Energy, stated: “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. 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.”
Xcel Energy has outlined a strategy focused on reducing wildfire risk and improving grid resilience in Colorado. Its 2025-2027 Wildfire Mitigation Plan was unanimously approved by the Colorado Public Utilities Commission. The plan includes investments in system resilience, improved awareness of high-risk fire scenarios, enhanced operations and maintenance practices, and increased engagement with state and local agencies. Specific improvements are planned for Boulder County such as undergrounding certain power lines and modernizing energy infrastructure. More information about Xcel Energy’s wildfire mitigation efforts is available at https://co.my.xcelenergy.com/s/outage-safety/wildfires/mitigation.
The Marshall Fire began on December 30, 2021, with an ignition on Twelve Tribes property in Boulder County when embers from an earlier debris burn reignited. High winds spread the fire rapidly into Louisville and Superior. A second ignition occurred nearby roughly 80 minutes later. Plaintiffs sought billions in damages against Xcel Energy and telecom defendants related to this second ignition; Xcel Energy disputes involvement of its equipment.
Xcel Energy is headquartered in Minneapolis and provides electricity and gas services across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas. More details can be found at https://xcelenergy.com or through their social media channels.
