Colorado Regulators Draft Rules for Xcel's Wildfire Power Shutoffs Without Compensating Customers for Spoiled Food or Lost Business Revenue
Regulators set a 2027 deadline for new rules on preemptive outages. Public hearings begin November 23.
Utility folks in the mountains know that keeping the lights on during high winds is a gamble. Xcel Energy has been playing that game for years. Now the folks in charge at the Colorado Public Utilities Commission are trying to set the rules for how they pull the plug when the wind gets too strong. The goal is simple. They want to make sure everyone knows when the power is going out before the switch flips. The draft rules are out and they signal a clear message for customers. You might lose your food or your business revenue but you are not getting a check from the utility for it. The process is just getting started. The rules will not be final until 2027. A public hearing is set for November 23 but the draft already tells us what is in and what is out. The commission wants better coordination between Xcel and the folks paying the bills. They want clear communication on when the shutoff happens and when the lights come back on. It remains unclear if there will be penalties if the warning system fails. One thing is certain. The rules will not include a requirement for the company to pay residents for lost food or businesses for lost products and customers. Commission member Erin O'Neill said the rules will set expectations for utilities. They will allow for reporting and follow-up on notification issues. The draft is still a work in progress. The commission plans to hold public hearings and accept comments before anything is set in stone for good.
The memory of the Marshall fire is still fresh in minds out here. That 2021 blaze burned more than 1,000 homes in Boulder County. It killed two people. An investigation pointed to an Xcel power line snapping in hurricane-force winds. The sparks flew onto dry vegetation and the rest is history. Xcel agrees to pay a massive settlement. They agreed to pay $640 million to settle a lawsuit brought by over 4,000 people and businesses. Even though Xcel disputes that its equipment caused the fire they paid up. That tragedy changed how the industry looks at power in dry conditions. Following that they adopted public safety power shutoffs. The utility used this strategy after the Marshall fire to prevent wildfires.
The first real test came in 2024. A windstorm hit and Xcel cut electricity to 55,000 customers. Some of those folks went without power for days. The company did it again in December and January. The scale of those outages really sparked a backlash. The commission launched an investigation after people complained about the shutoffs. The Colorado General Assembly even called Xcel's Colorado chief executive to testify at the state capitol. Sydney Isenberg from the company explained the strategy. They use proactive power shutoffs solely to protect public safety. They weigh factors like wind speeds relative humidity fuel moisture and temperature. They also look at critical customers and infrastructure before pulling the plug. Isenberg said the company uses shutoffs sparingly and judiciously in the most extreme weather. They deploy these outages when they predict other wildfire-mitigation methods will not be enough.
This debate over shutoffs is tied directly to the Marshall fire. It is inseparable from that event. The utility says it wants to review its next steps once it receives the commission's written order. They will continue working with the commission and the community on how to handle these shutoffs. It is a tough spot for everyone involved. Living in these fire zones means living with the risk of the grid going down. The neighbors out there just want to be safe.
We are not the only ones dealing with this stuff. Colorado's push for clearer notification standards echoes practices in other states. Montana-based NorthWestern Energy says it uses shutoffs only in extreme situations during severe fire weather. They follow a phased approach that moves through stages. The stages are monitoring watch warning alert shutoff restoration and closeout. This is a good way to handle things. Under the watch phase potentially affected customers get an automated call text or email two to three days before a shutoff. During the warning phase customers are notified one to two days beforehand. NorthWestern says its crews begin restoring power only after dangerous weather and fire risks pass and the lines are inspected for damage. It is a method that keeps everyone informed. For now Coloradans affected by future shutoffs will have to wait for the rulemaking to play out. The November hearing marks the next formal step but finalization is not expected until 2027. It is a long road to get to the finish line but the rules are finally being written down.
First reported by Hoodline.
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