Xcel Energy Reaches $640 Million Marshall Fire Settlement, Averting Trial
Xcel Energy Reaches $640 Million Marshall Fire Settlement, Averting Trial
Xcel Energy and two telecom companies have agreed to a $640 million settlement with thousands of plaintiffs in the Marshall Fire lawsuit, just one day before the high-stakes trial was set to begin in Boulder.
The “agreement in principle,” announced by the utility on Wednesday, September 24, 2025, aims to resolve all liability from the catastrophic 2021 wildfire. The settlement, which still requires approval from individual plaintiffs, includes payments to insurers, Boulder County, and residents who lost homes and property.
Xcel Energy anticipates covering approximately $640 million of the settlement, with around $350 million expected to be covered by its insurance policies. Crucially, the company stated that none of these costs will be passed on to customers.
Despite the significant payout, Xcel Energy maintains its position that its equipment did not cause the Marshall Fire and does not admit to any negligence or fault as part of the settlement terms. The two telecom companies involved will also contribute to the payments.
The trial, which was slated to last until late November, would have focused on determining liability for sparking one of the fires that merged into the Marshall Fire. Had Xcel been found liable, it faced potential damages exceeding a billion dollars, making this settlement a major reduction in financial risk and a significant shortening of the legal timeline.
While details remain confidential, plaintiffs like Louisville resident Tawnya Somauroo, who lost her home, expressed a desire for the settlement funds to aid in community rebuilding and recovery, hoping to “restitch the neighborhoods impacted by the disaster.”
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