DENVER — Xcel Energy, along with two telecommunications companies, has agreed to settle a lawsuit involving "virtually all" of the thousands of people and companies impacted by the devastating Marshall Fire in 2021, the company said.
The energy provider — along with telecommunications companies Qwest Corporation and Teleport Communications America, LLC — reached agreements in principle, Xcel Energy announced in a press release on Wednesday. Once the settlement is finalized, it will resolve all claims. The company said it expects to pay about $640 million related to these settlements.
READ MORE: All Denver7 coverage of the Marshall Fire and the aftermath
One of the many attorneys representing plaintiffs in this case also confirmed this settlement to Denver7, but did not provide any further comment. Another attorney representing some of the plaintiffs told Denver7 a number of them have "definitely have not settled," however he added he is not at liberty to discuss further.
Jury selection for a civil trial was expected to start this week.
The Denver Post was the first to break the news on Wednesday.
In September 2023, a judge agreed to consolidate several lawsuits against Xcel Energy, representing hundreds of survivors, into one case.
The fast-moving fire in Boulder County was reported around 11 a.m. on Thursday, Dec. 30, 2021 amid exceptionally dry conditions. The blaze, fueled by hurricane-force winds and dry fuels, ran east for 6,000-plus acres, destroying more than 1,000 homes and businesses in Superior, Louisville and unincorporated Boulder County. More than 35,000 people were evacuated. Two people — Edna Nadine Turnbull, 91, and Robert Sharpe, 69 — died. An estimated 1,000 pets also perished.
The Marshall Fire quickly became the most destructive fire in Colorado history, with about $2 billion in losses.
An investigation by the Boulder County Sheriff's Office found that the devastating fire began as two separate blazes — the first was likely sparked by a resident's buried fire from about a week prior and the second likely began as a result of a disconnected Xcel Energy power line. After examining Xcel Energy power lines after the fire, investigators found that the line had disconnected from a cross arm and was hanging low enough to touch a support brace. After the line broke, smoke and flames were seen near the base of that power pole, the sheriff's office said. The Boulder County District Attorney said based on the extensive investigation, no criminal charges were appropriate.
Watch the full 2023 press conference on the origin and cause of the Marshall Fire in the video below.
However, Xcel Energy said on Wednesday that all plaintiffs in this litigation, which includes Boulder County, have "abandoned and directly repudiated the theory of Xcel’s involvement in starting the Trailhead Ignition that was previously put forth by Boulder County," a trial brief document reads.
Instead, the plaintiffs have a new theory, the document reads: "A loose piece of stainless steel lashing wire on a telecommunications line owned by Teleport (a subsidiary of AT&T) allegedly swung up and contacted Xcel’s powerline."
Xcel Energy said this new theory "will fare no better at trial" than the original civil case against the company, stressing that a group called Twelve Tribes was responsible. The Twelve Tribes property is where the buried fire reignited and was the other cause of the Marshall Fire listed by the sheriff's office.
The settlement does not mean they are admitting any fault or wrongdoing in connection with the fire.
“Despite our conviction that PSCo (Public Service Company of Colorado) 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," said Bob Frenzel, chairman, president and CEO of Xcel Energy on Wednesday. "In resolving all liability from the claims, this settlement reinforces our longstanding commitment to supporting the communities we serve. 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.”
In an interview with Denver7 Chief Investigator Tony Kovaleski, Boulder County District Attorney Michael Dougherty said he hopes the settlement will help people "continue to recover and rebuild."
"Having been the district attorney since 2018 and then during the Marshall Fire and since then, it's been incredible to see victims and community members rallying around each other and rebuilding and recovering, but there's still so much trauma and financial loss for the people who are impacted by the Marshall Fire," he said. "I've been to so many community events and spoken with so many people, including people that I work with, who were impacted by the Marshall Fire, and it's impacted their lives for so long. And I think it'll stay with them forever. So, I think any possible settlement will hopefully allow for those impacted to move forward with their lives and continue to rebuild their lives and also their homes."
Watch Denver7 Chief Investigator Tony Kovaleski's full interview with the district attorney, where he asked Dougherty for his reaction to the settlement.
Kovaleski asked if money can truly fix what happened and Dougherty responded "no, of course not," especially for those who lost pets and loved ones. But it will help a great deal of people, especially those who were under-insured and having difficulty rebuilding, he said.
In the wake of the fire, Xcel Energy has shared multiple wildfire prevention measures, including 21 AI-powered fire detection cameras, burying power lines in targeted areas, and enhanced power line safety.
This is a developing story and will be updated.
