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Colorado's largest utility has agreed to settle a lawsuit over claims that it sparked the state's most destructive wildfire. CPR's Ishan Thakore has more.
ISHAN THAKORE, BYLINE: In December 2021, the Marshall Fire devastated Boulder County. It burned more than 1,000 homes and killed two people. Hurricane-force winds pushed it from bone-dry grass into dense suburbs. Around $2 billion in insurance claims have been filed. Tawnya Somauroo lost her home.
TAWNYA SOMAUROO: It's been a massive disruption in our lives. We moved five times because of the fire with our kids, and my husband has an illness, so it was very hard on our family. And my kids are still in therapy, for example. So we're still dealing with this disaster very much.
THAKORE: Investigators concluded that the cause was two smaller fires that eventually became the Marshall Fire. They said the first fire emerged from the remnants of a burn pile. Here's Boulder County Sheriff Curtis Johnson in 2023.
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CURTIS JOHNSON: The most likely cause of the second fire was hot particles discharged from an Xcel Energy power line.
THAKORE: Prosecutors ruled out any criminal charges for either of the fires. Instead, thousands of residents, Boulder County and insurance companies sued Xcel Energy, the state's biggest utility company. They claimed it was negligent and should be liable for damages. Xcel denies responsibility. But in recent years, other utilities have been sued for billions of dollars in damages for wildfires. In 2019, Pacific Gas and Electric declared bankruptcy after lawsuits over the Camp Fire and other California fires. A utility in Hawaii has proposed to pay nearly $2 billion for the Lahaina Fire in 2023.
Xcel was prepared to go to court. But on the eve of jury selection, the utility, plus two other telecom companies who were also defendants, agreed to settle for about $640 million. As part of the deal, Xcel admits no wrongdoing. The utility declined an interview but issued a statement saying that they hope the settlement brings, quote, "some closure." Matthew Preusch, one of the plaintiff's attorneys in the case, was happy with the deal.
MATTHEW PREUSCH: It provides real relief for fire survivors and our clients, and it holds Xcel accountable in a meaningful way.
THAKORE: The terms are still confidential and not yet final. Residents must still sign off on deals their lawyers negotiated. Tawnya Somauroo, who lost her home, is waiting for more details about the settlement, as are many of her neighbors.
SOMAUROO: I know at least three families in my neighborhood would rebuild if they had enough money. And I'm hoping that I just get that community back. I would settle for that right now.
THAKORE: Xcel says no customer money will be used to pay for the settlement. But this year, state regulators approved a new, massive wildfire mitigation plan for Xcel. The company will bury power lines underground, use AI-backed cameras to spot fires and shut off power during high-risk days. It's expensive - almost $2 billion. Colorado customers will pay for some of it in the form of higher bills.
For NPR News, I'm Ishan Thakore in Boulder, Colorado.
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