Xcel Energy, along with Qwest Corporation and Teleport Communications America, LLC, has reached agreements in principle to settle all litigation related to the 2021 Marshall Fire. The settlements will resolve claims from subrogation insurers, public entity plaintiffs, and individual plaintiffs.
The company expects its subsidiary, Public Service Company of Colorado (PSCo), to pay about $640 million as part of these settlements. Of this amount, approximately $350 million will be covered by remaining insurance policies. Xcel Energy stated that none of the settlement costs will be passed on to customers. The agreements are still subject to final documentation and require individual plaintiffs to opt in through their counsel.
Xcel Energy continues to deny any fault or negligence in connection with the fire. “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. “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.”
To address wildfire risks moving forward, Xcel Energy has implemented a strategy aimed at reducing wildfire risk and improving grid resilience in Colorado. The company’s 2025-2027 Wildfire Mitigation Plan was unanimously approved by the Colorado Public Utilities Commission. This plan includes investments in system resilience, improved awareness of high-risk scenarios, enhanced maintenance practices, increased engagement with state and local agencies, undergrounding power lines in Boulder County, and modernizing energy delivery infrastructure. More information is available at co.my.xcelenergy.com/s/outage-safety/wildfires/mitigation.
The Marshall Fire began on December 30, 2021 in Boulder County after embers from an earlier debris burn reignited on Twelve Tribes property. High winds quickly spread the fire into Louisville and Superior. A second ignition occurred nearby later that day. Lawsuits were filed seeking billions of dollars in damages against Xcel Energy and telecom defendants over 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. The company states it is committed to leading a clean energy transition while maintaining reliable service.
