Xcel Energy to pay $640M related to Marshall Fire settlements

In a regulatory filing, Xcel Energy (XEL) stated that as previously disclosed, multiple complaints were filed against Public Service Company of Colorado and Xcel Energy Services, both wholly owned subsidiaries of Xcel Energy, related to the Marshall Fire, which ignited in Boulder County, Colorado in December 2021. On September 23, Xcel Energy, Qwest Corporation and Teleport Communications America reached settlement agreements in principle that resolve all claims asserted by the subrogation insurers, the public entity plaintiffs and individual plaintiffs. PSCo expects to pay approximately $640M related to these settlements, with approximately $350M funded by remaining insurance coverage after consideration of legal costs incurred to date. PSCo expects to recognize an approximately $290M charge to earnings as a result of these settlement agreements in the quarterly period ending September 30, 2025. “Given the non-recurring nature of this charge, this will be an adjustment to net income in determining ongoing earnings for 2025. The agreements in principle remain subject to final documentation and individual plaintiffs opting in to the agreements negotiated and recommended by their counsel. Consistent with previous disclosures, PSCo disputes that its power lines caused the Marshall Fire. PSCo did not admit any fault, wrongdoing or negligence in connection with these settlement agreements,” the company stated.