Colorado will create new rules for Xcel's preemptive power shutoffs

A barrage of complaints about Xcel Energy's preemptive power shutoffs on windy days has led state regulators to craft guidelines around how Colorado's largest power company uses them in an effort to prevent wildfires.

The Colorado Public Utilities Commission on Wednesday began the process of creating rules for what Xcel calls "public safety power shutoffs," saying the state needs improved coordination between the utility and its customers and public safety agencies. Xcel needs to improve its communication about the timing of power shutoffs, their scope and how the company plans to restore electricity to those affected, commissioners said.

The proposed rules would not require Xcel to provide financial compensation to residents who lose food or businesses that lose products and customers during power shutoffs. It is unclear whether the proposed rules would include penalties if Xcel fails to meet expectations with its notifications and communication. A public hearing is scheduled for Nov. 23.

Xcel adopted public safety power shutoffs after the 2021 Marshall fire as a way to prevent or minimize the damage its power lines can cause when they are blown down in strong winds. The Marshall fire, which burned more than 1,000 homes in Boulder County and killed two people, was caused by an Xcel power line that snapped during hurricane-force winds and sent sparks onto dry vegetation. Xcel disputes that its equipment caused the Marshall fire. The company agreed to pay $640 million to settle a lawsuit brought by more than 4,000 people and businesses over the wildfire's ignition.

Xcel's first preemptive shutoff affected 55,000 customers ahead of a 2024 windstorm. Some customers went days without electricity as the company inspected its lines and equipment for damage after the storm before restoring power.