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 at 5325 Eldorado Springs Drive six days before the Marshall Fire and later reignited, investigators determined. They said the second fire began south of the Marshall Mesa Trailhead on Dec. 30 when hot particles were discharged from an Xcel Energy power line.
Xcel asserted that the telecommunication equipment was not malfunctioning and that the previous open burn was the start of the wildfire. In the defendant’s trial brief, they argued it ignited over an hour before the trailhead ignition, and had already begun to damage homes by that point.
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 lawsuit, filed by a group including Kupfners, claimed the utility company was responsible for the fire.
“What Xcel Energy has been insisting is that their equipment had nothing to do with the start of the fire, so the sheriff’s investigation blows that up,” James Avery, the lawsuit’s lead attorney, told CBS Colorado in 2023. “They just don’t want to accept their responsibility because it is massive.”
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.”
The company said approximately $350 million of the settlement will be funded by its remaining insurance coverage and that none of it will come from its customers. Xcel Energy said telecom defendants Qwest Corporation and Teleport Communications America, LLC are also contributing to the settlements.
The agreements in principle are subject to final documentation and individual plaintiffs opting into the agreement negotiated by their counsel, they added.
Gov. Jared Polis said he’s glad to see a resolution and hopes it will help the community continue to rebuild.
“The Marshall Fire was the most destructive fire in Colorado history, ripping through our communities and displacing many Coloradans from their homes. It is about time this matter is resolved, and I hope these settlements provide some needed closure for Coloradans and communities that were directly impacted by the Marshall Fire and provide additional resources to help survivors and the community continue to rebuild, recover, and further strengthen our resilience.”Â
