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 cover claims brought by subrogation insurers, public entities, and individual plaintiffs.
The Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, expects to pay about $640 million for these settlements. Of this amount, approximately $350 million will come from the company’s remaining insurance coverage. Xcel Energy stated that no settlement costs will be passed on to customers. These agreements are still subject to final documentation and require individual plaintiffs to opt into the agreement recommended by their counsel.
Xcel Energy has maintained throughout the process that its equipment did not cause or contribute to the fire and does not admit any fault or negligence as part of 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. “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 comprehensive wildfire mitigation strategy aimed at reducing 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, better awareness of high-risk fire scenarios, enhanced operations and maintenance practices, increased engagement with agencies at various levels, undergrounding power lines in Boulder County, and modernizing energy delivery infrastructure. More information is available on Xcel Energy’s wildfire mitigation work at co.my.xcelenergy.com/s/outage-safety/wildfires/mitigation.
The Marshall Fire began on December 30, 2021 in Boulder County when embers from an earlier debris burn reignited on Twelve Tribes property during high winds. The fire spread rapidly into Louisville and Superior. A second ignition occurred nearby later that day. Plaintiffs filed lawsuits seeking billions of dollars in damages against Xcel Energy and telecom defendants regarding this second ignition; Xcel Energy disputes involvement of its equipment.
Xcel Energy is headquartered in Minneapolis and provides electricity and gas across eight states: Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico and Texas.
