More than 2,000 Coloradans have agreed to settle their claims with Xcel Energy over the 2021 Marshall Fire, lawyers said during a hearing in Boulder district court on Wednesday. That represents roughly half of the individuals who sued Xcel Energy for its alleged role in sparking the state’s costliest wildfire.
Their claims sought to prove that the utility and two telecom companies were liable for sparking the blaze and should pay hefty damages.
But on the eve of a jury trial in late September, Xcel and the companies agreed to pay around $640 million to settle the claims. As part of its “agreements in principle,” Xcel admitted to no wrongdoing and maintains that its equipment did not spark the fire.
The actual terms of the settlements are confidential, though, as are the exact amounts that will be distributed to thousands of residents, insurance companies and municipalities, like Boulder County, who sued Xcel.
In its third-quarter earnings report, Xcel said that most of the settlement payments will be covered by its insurers. The company reported a $287 million hit to its earnings to cover the rest of the payment.
Since the settlements were announced, attorneys have been ironing out final details and getting clients to sign agreements.
Kevin J. Orsini, an attorney representing Xcel, said they expect to finalize binding settlement agreements with “the overwhelming majority of [individual] plaintiffs,” hopefully by the end of the year.
Settlements with municipalities, including Boulder County and the town of Superior, are also being finalized.
“We see no reason to believe there will be any speed bumps that will derail getting those agreements signed,” Orsini said.
A lawyer for the municipalities said that settlement agreements will go to town boards for approval later in November. Exact amounts are unclear, but in other cases, such as the 2018 Camp Fire, the town of Paradise, California, was paid $270 million by the utility giant PG&E.
Orsini said there were a couple “final tweaks” to make before finalizing settlement terms with the insurance companies that’ve sued Xcel.
But a few issues remain. A handful of people have declined their settlements, according to Orsini, so those cases could head to trial next year.
Around 600 minors — children and teenagers — are listed as plaintiffs, which means their settlements may need special approval, and those funds may need to be handled by guardians or conservators.
That process could add months, or even years, to a settlement process that is winding down. Attorneys asked the judge for guidance.
“I'm just trying to avoid the scenario where we have to file 600 separate cases and delay things,” said Eve-Lynn Rapp, an attorney representing fire victims, including around 100 minors.
District Court Judge Christopher Clayton Zenisek set another status hearing for Jan 13, 2026.
David Smith, a plaintiff and fire victim, said in court that he hopes the settlement process is finally coming to a close.
“Let’s move forward, that’s all I’m saying at this point,” Smith said.
