Xcel Energy customers who lost refrigerated or frozen goods during the utility’s public safety power shutoffs face steep hurdles in recovering damages through lawsuits.

Colorado law and utility rules issued by the Colorado Public Utilities Commission limit liability for service interruptions, even when outages result from proactive de-energization to prevent wildfires.

Jack Luellen, senior counsel at Buchalter, said these rules mean the company is not liable unless the customer proves gross negligence or willful misconduct.

The PUC rules prevent utilities from passing costs of negligence-related lawsuits or settlements to ratepayers.

Xcel Energy does not reimburse customers for losses resulting from power interruptions, whether caused by storms or Public Safety Power Shutoffs, said Xcel spokesperson Michelle Aguayo in a statement to The Denver Gazette.

Exceptions exist in narrow circumstances, according to Luellen.

He said gross negligence or even common negligence can sometimes avoid tariff protections, though that is the exception to the rule.

For example, said Luellen, if a court finds gross negligence or willful misconduct, the rate-rule shield may not apply. If evidence shows Xcel knowingly ignored severe defects in infrastructure — such as cracked poles or faulty hangar hardware — that directly necessitated the shutoff, a claim could proceed. Discovery in litigation could reveal inspection records, maintenance logs or internal documents.

The Marshall Fire litigation produced some evidence through court filings before settlement, but no trial occurred.

The Christian Employers Alliance criticized Xcel’s priorities in a statement issued Aug. 8, 2025 — before the recent PSPS events. The alliance argued that Xcel’s focus on spending “more than $3 billion on agenda-driven transmission lines” left existing distribution infrastructure — poles, lines and substations — vulnerable to windstorms and wildfire risks. The statement highlighted long-standing worries about the negligent maintenance of the utility’s aging system.

Critics have drawn parallels to the 2018 Camp Fire in California, where a century-old hanger hook on a PG&E line broke and sparked the blaze that killed 83 people.

Gov. Jared Polis, who appoints PUC commissioners and has signed legislation expanding the commission’s authority over utilities, released a statement on Dec. 19, criticizing Xcel’s communication during public safety power shutoffs and weather-related outages. 

“Utility companies must provide clear and up-to-date information to consumers on planned and unplanned energy outages,” Polis said. “No Coloradan should be wondering if they will or will not have power, and when it may be turned on again, or worse, receive no communication or confusing communication.”

Polis sent a letter to Xcel in April 2024 after the utility’s first PSPS event, expressing frustration with proactive power cuts, slow restoration and insufficient communication.

“We recognize the challenges our customers face when being without power for an extended period of time and appreciate their patience as our crews work tirelessly to restore power,” said Aguayo. “Last week saw historic extreme weather in the state of Colorado, including the issuance of the state’s first Particularly Dangerous Situation warning from the National Weather Service. In such extreme weather conditions, we appreciate customers’ understanding that PSPS can be a public safety necessity.”

The Dec. 17 shutoff affected about 50,000 customers in Boulder, Clear Creek, Jefferson, Larimer and Weld counties. The Dec. 19 shutoff impacted about 69,000 customers in Boulder, Clear Creek, Gilpin, Jefferson, Larimer and Weld counties. Both events coincided with gusts exceeding 90 miles per hour and low humidity. Restoration took hours to days for some customers.

Aguayo said some customers experienced longer outages due to storm damage and the two extreme weather events occurring just days apart.

Xcel said it began communicating with customers last Monday about the likelihood of the shutoff and additional outages due to the severe weather and included steps they could take to prepare for prolonged outages. These communications are in addition to the ongoing public and customer education campaign to help customers adequately prepare for such events, particularly those in wildfire-prone areas.

Xcel did not use widespread public safety power shutoffs before 2024. The company responded to past high-wind events by isolating damaged circuits only after faults occurred. High-wind events have occurred in Colorado for decades, including in Boulder County.

Examples included the 2021 Marshall Fire windstorm, where gusts exceeded 100 miles per hour but no preemptive de-energization took place. Xcel did not shut off power proactively during that event.

The PUC approved Xcel’s 2025-2027 Wildfire Mitigation Plan in June 2025. The plan included public safety power shutoffs as a mitigation tool, alongside enhanced powerline safety settings, vegetation management and targeted undergrounding of lines. The commission required improvements in customer communication and support for vulnerable populations.

The PUC continues to work on permanent rules for public safety power shutoffs, including communication standards.