Xcel Energy has agreed to pay approximately $640 million to settle a lawsuit involving over 4,000 plaintiffs who sued the company over complaints stemming from the Marshall Fire.
In December 2021, a wildfire sparked in Boulder County, destroying more than 1,100 homes and buildings and burning over 6,000 acres. The Boulder County Sheriff’s Office said the massive wildfire began as two separate fires. The first began on a property six days before the Marshall Fire and later reignited, investigators determined. They said the second fire began on Dec. 30 when hot particles were discharged from an Xcel Energy power line. According to the Colorado Insurance Commissioner, the Marshall Fire caused over $2 billion in property losses.
Seven lawsuits were filed against the energy company, which were later combined. The initial lawsuits, filed by insurers, claimed the utility company was responsible for the fire.
On Wednesday, Xcel Energy agreed to pay approximately $640 million to settle claims by insurers, public entity plaintiffs and individual plaintiffs. Xcel, a subsidiary of Public Service Company of Colorado, maintains that its equipment did not cause or contribute to the fire, stating:
“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.”
