Colorado Law Shields Xcel From Most Legal Claims Over Power Outages

By Scott Weiser | The Denver Gazette

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, given the limits on liabilities approved by state regulators.

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

Xcel Energy’s rate rules, issued by the PUC and largely upheld by Colorado courts, contain clauses that shield the utility from claims for power interruptions.

Jack Luellen, senior counsel at Buchalter, said these rules mean the company is not liable for losses caused by service interruptions — unless the customer proves gross negligence or willful misconduct.

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