In a significant development on the eve of the much-anticipated Marshall Fire trial, Xcel Energy and two telecommunications companies have reached an agreement in principle to settle for $640 million with plaintiffs affected by the devastating wildfire. The announcement was made on Wednesday, September 24, 2025, by Xcel Energy, although the details of the settlement remain confidential and the agreement is pending approval from the individual plaintiffs involved in the trial.
The state’s largest utility company has indicated that they expect to pay approximately $640 million to thousands of plaintiffs, which include not only residents but also insurers and Boulder County. Notably, Xcel anticipates that around $350 million of the settlement will be covered by its insurance policies, affirming that customers will not bear any of these costs. The two telecom companies involved are also expected to contribute to the overall settlement amount.
According to Singleton Schrieber, the law firm representing several plaintiffs, the exact terms of the settlement remain under wraps. District Court Judge Christopher Clayton Zenisek has mandated both parties to provide a written update regarding the settlement within 30 days, with a follow-up meeting scheduled for November 5 to discuss the agreement further.
As part of the settlement terms, Xcel maintains that its equipment did not cause the Marshall Fire, and the company does not admit to any negligence or wrongdoing. Bob Frenzel, the chairman, president, and CEO of Xcel Energy, stated, “In resolving all liability from the claims, this settlement reinforces our longstanding commitment to supporting the communities we serve.”
Tawnya Somauroo, a Louisville resident who lost her home in the Marshall Fire, expressed her concerns following the announcement. She noted that the immediate news of the settlement has left her with more questions than answers, as she awaits further information from her legal team. Somauroo hopes that the settlement funds will aid in rebuilding the neighborhoods devastated by the fire. “By the time my family joined the case, we had already moved five times due to the fire, which caused enormous mental strain,” she said, highlighting the ongoing challenges faced by many survivors.
This is not the first instance where Xcel's parent company has faced wildfire-related litigation. The company estimates it will pay around $290 million in claims and settlements concerning its involvement in the 2024 Smokehouse Creek Fire in Texas. While Xcel has settled several lawsuits related to that incident, it continues to assert that it did not act negligently, acknowledging only that its facilities were involved in the fire’s ignition.
The trial, initially set to extend into late November, was designed to determine whether Xcel and the two telecom companies should be held accountable for igniting the fires that ultimately merged into the Marshall Fire. Jury selection was scheduled to begin the day after the settlement announcement, with the potential for Xcel to face liabilities amounting to hundreds of millions, if not exceeding a billion dollars, depending on the trial's outcome. Finalizing the settlement could significantly mitigate the company’s financial exposure and expedite the resolution process for the affected communities.
In recent years, utility companies across the Western United States have grappled with substantial financial repercussions stemming from wildfire-related settlements. A notable case in 2023 involved an Oregon jury finding PacifiCorp liable for sparking several fires in 2020, resulting in nearly $500 million in damages to survivors, with additional trials looming.
The Marshall Fire erupted on December 30, 2021, when two separate fires merged, propelled by hurricane-force winds reaching up to 100 miles per hour. The wildfire wreaked havoc across Louisville, Superior, and unincorporated Boulder County, ultimately destroying over 1,000 homes and claiming two lives. Uniquely, the fire occurred outside the peak summer wildfire season, with a subsequent snowstorm aiding in its extinguishment.
A 2023 joint investigative report by the Boulder County Sheriff’s Office and the Boulder County District Attorney’s Office traced the origins of the two fires. The first fire ignited after members of the Twelve Tribes Christian sect conducted a controlled burn on December 24, 2021. A windstorm later unburied embers from this burn, leading to a rapid grass fire, which investigators identified as the initial ignition point of the Marshall Fire.
The second ignition, termed the Trailhead Fire, occurred near Xcel Energy’s power lines. Investigators suggested that a disconnected power line likely caused this ignition. Although the report pointed towards Xcel's power lines as a probable source, it also acknowledged that it could not completely rule out other contributing factors.
The investigation concluded that there was no indication of criminal conduct by the Twelve Tribes or Xcel, despite the catastrophic outcomes of the fire. Plaintiffs, including residents, businesses, and insurance companies, have claimed that the negligence of Xcel and the telecom companies was responsible for their losses. In contrast, Xcel argued that the Twelve Tribes were primarily at fault.
With the settlement announcement, Xcel Energy assured the public that none of the costs associated with the settlement would be passed onto customers. Coloradans currently contribute to expenses aimed at reducing wildfire risks, such as vegetation management around power lines. However, as Xcel's liability insurance costs have surged due to increased wildfire risks, there are concerns about potential impacts on utility bills in the future.
Since the Marshall Fire, Xcel has implemented a “Wildfire Mitigation Plan” to manage wildfire risks effectively. Recently, state regulators approved a more extensive and costly wildfire mitigation strategy, which may eventually lead to higher customer bills. This updated plan includes advanced technologies like AI cameras and the underground placement of power lines, reflecting a collective commitment to combatting wildfire threats in Colorado.
