Xcel Energy’s preemptive power shutoffs scrutinized by lawmakers

Facing Criticism, Xcel Energy Defends Decision to Preemptively Cut Power to Minimize Wildfire Risks

After receiving a wave of complaints, Xcel Energy appeared before a legislative committee on Friday to explain and justify its choice to proactively shut off power in certain areas along the Front Range in December to reduce the threat of wildfires.

Robert Kenney, president of Xcel Energy-Colorado, informed members of the Joint Energy Committee that the utility rarely resorts to planned power outages, also known as public safety power shutoffs.

The power shutoffs on December 17 and 19 impacted tens of thousands of Xcel customers from Boulder to metro Denver. Additionally, some customers lost power due to severe winds damaging electrical infrastructure.

Xcel’s decision to cut power was influenced by strong winds, dry conditions, and flammable vegetation that could easily ignite from downed power lines or damaged equipment.

“We believe that conducting the shutoffs was the right operational decision for public safety,” Kenney stated.

With wildfire-prone areas becoming increasingly dry and warm, Kenney explained that utilities are using preemptive power shutoffs more frequently to mitigate the risk of devastating fires. He emphasized that these shutoffs are just one of the tools Xcel employs to address wildfire threats.

Despite facing criticism, Xcel’s wildfire mitigation plan for 2025-2027 includes $1.9 billion in investments.

During the legislative committee hearing, lawmakers and members of the public expressed concerns about the utility’s reliance on power shutoffs during extreme weather events. They highlighted the financial losses incurred by businesses, spoiled food, and potential risks to individuals relying on electricity for medical devices.

Xcel cut power to around 9,000 customers in mid-January due to high winds in northern Colorado.

Rebecca White, director of the Colorado Public Utilities Commission (PUC), shared that the commission has allocated $2 million for a program offering rebates to income-qualified individuals for batteries to power medical devices during outages. The PUC is collaborating with Xcel to implement plans for more targeted power shutoffs during extreme weather conditions.

Although Xcel faced criticism for its handling of power shutoffs, improvements have been made since the initial preemptive outages in April 2024. Communication with local governments and the public has been enhanced, but there are calls for further improvements in transparency and information dissemination.

In light of the Marshall fire in December 2021, which investigators partly attributed to Xcel’s electrical distribution system, questions have arisen about the utility’s liability and potential lawsuits. Kenney maintained that Xcel’s wildfire prevention efforts are not driven by a desire to avoid legal action.

While the issue of compensation for losses during power shutoffs was raised, Kenney noted that utilities typically do not provide reimbursement. The complexity of determining who should receive compensation further complicates the matter.

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