Who Pays the Price When the Lights Go Out?

Significant Disruption and Economic Losses

The recent Public Safety Power Shutoffs (PSPS) by Xcel Energy on December 17, 2025, along the Front Range, caused significant disruption.

Small businesses faced substantial losses:
Restaurants dumped spoiled food.
Workers missed out on wages.
Families struggled to:
Keep homes warm.
Run medical devices.

The economic impact was severe, and it's unfair to expect communities to bear these costs alone.

Wildfire Threat and Responsibility

Wildfires are a real threat, as seen in the devastating Marshall Fire in Boulder:

Destroyed over 1,000 homes.
Caused billions in damage.

When conditions are extreme, taking action is crucial. However, as PSPS events become more frequent, questions arise about who is responsible for protecting communities from both wildfires and the economic fallout of prolonged power outages.

The Hidden Aspect: Liability

There's a hidden aspect to these shutoffs: liability.

Utilities like Xcel Energy risk massive lawsuits if their equipment sparks a fire.
Shutting off power reduces this risk, protecting the utilities from financial ruin.

But does this need to shield themselves from lawsuits outweigh the community's need for reliable energy and economic stability?

Current Situation and Fairness

Currently, the Colorado Public Utilities Commission oversees PSPS decisions, but there's no requirement for utilities to compensate communities for economic damage. This creates an uneven situation where:

Utilities reduce their risk.
Small businesses and workers suffer the losses.

Is it fair to expect a local restaurant to absorb a $50,000 or $100,000 hit every time the power is shut off? Should family-owned businesses and their employees just accept this as the new normal?

Community Anger and Limited Tools

As a city council member, the anger and frustration felt by the community are shared. The holiday season, in particular, is a critical time for sales and wages. However, cities have limited tools to address these issues.

Steps can be taken to reduce the impact of future PSPS events, such as:

Streamlining permitting.
Accelerating inspections.
Advocating for grid improvements.

But cities don't regulate utilities or control when power is shut off.

State Responsibility and Legislative Action

If the state allows utilities to shut off power to reduce wildfire risk and protect themselves from liability, then the state must also protect the communities affected.

In the next legislative session, lawmakers should:

Require utilities to create a fund for compensation.
Establish clear standards for PSPS events.

This way, wildfire risk reduction won't come at the unchecked expense of local communities, businesses, and workers.

Balancing Wildfire Prevention and Economic Survival

We can acknowledge the importance of wildfire prevention while also recognizing the need for economic survival. Protecting communities means more than just preventing fires; it means ensuring that when the lights go out, the local economy doesn't suffer as well.