Marshall Fire Lawsuit Settled: Xcel Energy Agrees to $640 Million Payout, Averting Trial
Marshall Fire Lawsuit Settled: Xcel Energy Agrees to $640 Million Payout, Averting Trial
Xcel Energy and two telecom companies have reached a $640 million settlement with thousands of plaintiffs, effectively averting a major trial that was set to begin today over the devastating Marshall Fire. The ‘agreement in principle,’ announced by the utility on Wednesday, September 24, 2025, comes just hours before jury selection was slated to begin in Boulder County District Court.
The substantial settlement aims to resolve all liability from claims related to the December 2021 Marshall Fire, which destroyed over 1,000 homes and seven commercial buildings in Louisville, Superior, and unincorporated Boulder County. Xcel Energy anticipates paying approximately $640 million, with roughly $350 million expected to be covered by its insurance policies. Crucially, the company has stated that none of these costs will be passed on to customers.
Despite agreeing to the significant payout, Xcel Energy maintains its stance that its equipment did not cause the Marshall Fire and does not admit to any negligence or fault as part of the confidential settlement terms. The two unnamed telecom companies are also contributing to the overall settlement fund.
The agreement still requires formal approval from individual plaintiffs. District Court Judge Christopher Clayton Zenisek has ordered both sides to provide a written update on the settlement within 30 days, with a follow-up meeting scheduled for November 5 to discuss the final details. This settlement significantly reduces Xcel’s financial risk, as a finding of liability in court could have exposed the company to damages exceeding a billion dollars.
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