Overview and Background

As Colorado continues to face increasingly severe wildfire risks driven by climate change, it is more important than ever to strengthen the safety and reliability of the state’s electric grid. In response to these growing challenges, Xcel Energy filed its second Wildfire Mitigation Plan (WMP) with the Colorado Public Utilities Commission (PUC) on June 27, 2024. This plan outlines proposed wildfire prevention and risk reduction efforts for 2025 to 2027.

The proposed WMP includes approximately $2 billion in investments across Xcel’s service territory, including

  • 50 miles of targeted undergrounding of overhead power lines, including projects in the Boulder area.
  • Adoption of Public Safety Power Shutoffs (PSPS) and Enhanced Power Safety Settings (EPSS) as formal wildfire mitigation tools.
  • System resilience investments with a focus on enhanced situational awareness of high-risk fire scenarios, improved operations and maintenance practices to mitigate fire risk.
  • Expanded vegetation management and coordination with local agencies.
  • Dedicated customer service and communications support for those impacted by PSPS events.

Recognizing the critical implications of this plan for public safety and resilience, the City of Boulder formally intervened in the PUC proceeding. Staff from across the city—representing climate initiatives, fire and rescue, forestry, utilities and emergency management—provided expert testimony to shape the plan and advocate for local priorities. Their focus included:

  • Accelerated and expanded undergrounding of electric lines
  • Protection of key infrastructure like water and wastewater treatment facilities
  • Improved PSPS notification and coordination
  • Greater transparency and measurable risk reduction outcomes
  • Enhanced programs for community members impacted by wildfire safety operations

During early 2025, Boulder joined Xcel Energy and other parties in settlement discussions aimed at resolving issues and presenting a unified set of recommendations to the PUC. On April 18, 2025, the parties reached a comprehensive, unanimous settlement agreement. Boulder joined the agreement, as it reflects the city’s top priorities and secures major safety, service and cost-saving benefits for the community.

Key outcomes for Boulder in the proposed settlement include:

  • Undergrounding and hardening of electric lines serving critical infrastructure like the city’s wastewater and water treatment plants
  • Targeted investments in north and south Boulder to reduce wildfire risk and PSPS-related power outages
  • A new program to provide backup power systems for low-income community members with medical needs
  • Clearer PSPS communication protocols, including 72-, 48-, and 24-hour advance notices
  • Improved collaboration between Xcel and local emergency and forestry departments
  • Xcel’s agreement to use securitization—a financial tool projected to save customers up to $1 billion over time—to fund a significant portion of the plan

The plan now awaits a final decision from the PUC. If approved, these efforts will help reduce the risk of wildfire ignition and ensure better protection and support for the Boulder community.

The WMP is a proposal submitted by Xcel Energy to the Colorado Public Utilities Commission (PUC) to invest approximately $2 billion in wildfire risk reduction strategies from 2025 to 2027. It includes infrastructure upgrades, vegetation management, enhanced operations, communications improvements and formal use of Public Safety Power Shutoffs (PSPS) during high-risk conditions.

Boulder is participating as a formal intervenor in the Public Utilities Commission case. This means that the city submitted testimony from nine departments to advocate for Boulder-specific improvements, including stronger protections for critical infrastructure, better coordination during outages and expanded support for vulnerable populations.

The settlement represents a consensus among all parties involved—including city and state agencies, consumer advocates and environmental groups. It addresses key concerns raised by Boulder and proposes a revised version of the plan that is more community-focused, cost-conscious and accountable.

The settlement secures:

  • Substantial investment in wildfire risk reductions
  • Undergrounding and hardening of power lines serving essential city infrastructure
  • Reduced Public Safety Power Shutoffs (PSPS) impacts for Boulder neighborhoods
  • A program providing backup power to income-qualifying medical community members
  • Collaboration on vegetation management
  • Improved communication and advance notification for PSPS events
  • Stronger transparency and annual reporting on wildfire mitigation progress

Due to climate change and development in wildland areas, traditional maintenance is no longer enough. More aggressive wildfire mitigation is now essential. This includes replacing older equipment, expanding tree and vegetation management beyond past standards and installing new technology.

The settlement also ensures that Xcel must prove any costs were prudent and above regular operations to recover them from customers.

Protecting our community members, infrastructure and environment from wildfire risks is a top priority. The settlement balances safety, equity and cost, using a tool called securitization to fund investments in a way that reduces long-term costs for ratepayers, saving an estimated $1 billion compared to traditional utility financing.

Securitization allows Xcel to issue bonds to fund wildfire mitigation instead of relying on the typical utility rate base model. This spreads costs over a longer period and at lower interest rates, resulting in net savings for customers compared to how projects would normally be financed. Xcel’s shareholders also give up returns they would otherwise earn.

Yes. The Public Utilities Commission, Office of Utility Consumer Advocates and Colorado Energy Consumers reviewed and vetted Xcel’s financial models for securitization and verified the projected savings.

Temporarily. Xcel can earn a limited return until Jan. 1, 2029, or until it completes the securitization process. After that, no further shareholder returns are allowed for securitized investments.

State law requires utilities to voluntarily propose securitization. The PUC cannot unilaterally require it. The settlement was the only viable path to securing this tool.

While no single solution eliminates wildfire risk, these combined investments make a meaningful difference. They reduce the chance of utility-caused fires, enhance system resilience and protect lives and property. Without this plan, the alternative may be more frequent and longer power shutoffs—an unacceptable long-term solution.

The PUC will review the proposed settlement and determine whether to approve, modify, or reject it. If approved, Xcel will begin implementing the wildfire mitigation measures, with ongoing reporting, oversight and community engagement.

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