PUEBLO COUNTY, Colo. — Residents forced to evacuate due to the Aspen Acres Fire have filed a lawsuit against the local power company, alleging powerlines were a "substantial factor in causing and contributing" to the wildfire's spread in Custer and Pueblo counties.
The Aspen Acres Fire, which started on June 29, has burned 99,820 acres as of Thursday morning and is 36% contained, according to the Northern Rockies Complex Incident Management Team. They determined it was human-caused, but exact details remain under investigation. The fire forced evacuations in Beulah, Rye, Whetmore, Colorado City and the surrounding areas.
The plaintiffs in the lawsuit, who are represented by Denver Injury Law LLC, are listed as Seth Johnson and Stacey Johnson, a married couple, as well as Frank Elmer and Rafael Velez. They allege that powerlines and energy utility equipment from San Isabel Electric Association, Inc. "were a substantial factor in the cause, origin, and continuation" of the Aspen Acres Fire. Plaintiffs claim the company put "profits over public safety," and led to extensive losses and trauma.
"My clients allege that the electric company was negligent in regard to their wildfire mitigation efforts and failing to keep the organic timber and other materials sufficiently away from the power lines so that these sort of things don't happen," explained James Avery, principal owner of Denver Injury Law LLC. "... My clients just want just compensation for their losses, whatever those losses may be, whether it's evacuation damages, the loss of wages for their time, loss of equipment, loss of homes, loss of personal property, smoke damage. There's a whole spectrum of damages that these people have suffered."
In a statement, San Isabel Electric Association, Inc. said it is aware of the lawsuit and is reviewing it, though its focus remains on safely repairing its system and restoring service.
"We are also conducting a thorough investigation into the cause of the fire but will not comment on the substantive allegations contained in the complaint," the company said.
According to the lawsuit, around 6 a.m. on June 29, a witness saw a fire burning near a powerline on an undeveloped property at 17245 State Highway 165 in the Aspen Acres neighborhood.
"A witness reports observing a fallen tree on a power line, another witness reports the sound of an explosion, and video taken by a witness shows the fire start in the area (which later became known as the “Aspen Acres Fire”)," the lawsuit reads. "The fire start was south of the Aspen Acres Campground on the same side of CO 165, Colorado."
These witnesses were not named in the lawsuit.
Strong winds helped the flames spread, the lawsuit reads, which ultimately "destroyed over a thousand structures, including over 300 homes. 30,000 residents were evacuated, dozens were injured, and at least one man lost his life while fleeing from the Aspen Acres Fire."
In a correction to the complaint, Avery confirmed to Denver7 there was no loss of human life in this fire.
In the days before the Aspen Acres Fire, residents had seen powerline-related fires in the community and were able to extinguish them, the lawsuit reads, adding that San Isabel Electric Association should have noticed this danger and addressed it.
The plaintiffs claim that the San Isabel Electric Association failed to properly inspect, maintain and repair the powerlines on the property prior to the fire, as well as failing to trim vegetation near the lines, which "allowed an unreasonably dangerous condition to exist on said property."
The lawsuit points to other instances where power utility equipment contributed to a Colorado wildfire, including the 2021 Marshall Fire in Boulder County. Xcel Energy, which agreed to pay $640 million to settle with residents in 2025, has consistently stated their powerlines were not responsible for the Marshall Fire.
Avery told Denver7's Maggy Wolanske that even if a court demands the defendants pay what the plaintiffs argue is fair, "everybody's going to come up short."
"Even though the homeowners, they had insurance — it's going to be a big blow to this community. That's going to take years, if not a decade or more, to recover from. So, that's my job, and that's why these homeowners contacted me to help them fill the gaps and to help them replace things like land and shops and equipment that is not going to be covered by insurance."
A lot of people in the community lost their entire life savings, he said.
"They've lost their dreams and their dream homes," Avery continued. "... We have one client who spent 40 years up here building his cabin by himself, stick by stick. He's lost it all. And there's nobody coming around with any aid or compensation."
A community meeting about the Aspen Acres Fire is scheduled for July 17 at 7 p.m. at the Raymond Aguirre Community Center, located at 28 County Road 632 in Gardner.
This is a developing story and Denver7 is working to learn more.
