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 brought by subrogation insurers, public entity plaintiffs, and individual plaintiffs.
Public Service Company of Colorado (PSCo), a subsidiary of Xcel Energy, expects to pay about $640 million as part of these settlements. Of this amount, approximately $350 million will be covered by the company’s remaining insurance coverage. The company stated that no costs from these settlements will be passed on to its customers. Final documentation and participation by individual plaintiffs are required for the agreements to be finalized.
Xcel Energy has maintained throughout the legal process that its equipment did not cause or contribute to the fire. The company does not admit any fault or wrongdoing as part of this resolution.
Bob Frenzel, chairman, president and CEO of Xcel Energy, said: “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.” He added: “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 in Colorado communities where it operates, Xcel Energy has developed a strategy focused on reducing wildfire risk and improving grid resilience. The company’s 2025-2027 Wildfire Mitigation Plan was unanimously approved by the Colorado Public Utilities Commission. The plan includes investments in system resilience and upgrades such as undergrounding certain power lines and modernizing infrastructure in Boulder County. It also involves enhanced operational practices and increased collaboration with local agencies.
The Marshall Fire began on December 30, 2021, when embers from an earlier debris burn reignited on Twelve Tribes property in Boulder County. High winds spread the fire quickly into Louisville and Superior. A second ignition occurred nearby about 80 minutes later. Lawsuits were filed seeking billions in damages against Xcel Energy and telecom defendants over their alleged involvement in this second ignition; Xcel Energy disputes any involvement of its equipment.
For more details on Xcel Energy’s wildfire mitigation efforts, information is available at co.my.xcelenergy.com/s/outage-safety/wildfires/mitigation.
Xcel Energy is based in Minneapolis and provides electricity and gas services across eight states including Minnesota, Colorado, Wisconsin, Michigan, North Dakota, South Dakota, New Mexico, and Texas.
