Summary
Xcel Energy Inc. (XEL) has announced a significant development regarding the Marshall Wildfire litigation through an 8-K filing on September 24, 2025. The company, through its subsidiary Public Service Company of Colorado (PSCo), has reached settlement agreements in principle to resolve all claims from subrogation insurers, public entities, and individual plaintiffs related to the 2021 wildfire. PSCo is expected to pay approximately $640 million, with $350 million covered by remaining insurance. This settlement will result in a non-recurring charge of approximately $290 million to earnings in the third quarter of 2025, which will be adjusted for ongoing earnings calculations. Despite this substantial settlement charge, Xcel Energy has reaffirmed its 2025 ongoing earnings per share (EPS) guidance of $3.75 to $3.85. The company emphasizes that PSCo does not admit fault or negligence in connection with the settlement. Investors should note that the ongoing earnings are a non-GAAP measure, and the actual GAAP EPS may differ due to this one-time charge. The settlement is subject to final documentation and individual plaintiff opt-ins.
Key Highlights
- 1Xcel Energy subsidiaries (PSCo) have reached settlement agreements in principle for all claims related to the Marshall Wildfire.
- 2The total settlement cost is expected to be approximately $640 million.
- 3Approximately $350 million of the settlement cost will be funded by remaining insurance coverage.
- 4PSCo expects to recognize a non-recurring charge of approximately $290 million to earnings in Q3 2025.
- 5This $290 million charge will be adjusted when calculating ongoing earnings for 2025.
- 6Xcel Energy reaffirms its 2025 ongoing EPS guidance of $3.75 to $3.85.
- 7PSCo disputes that its power lines caused the fire and does not admit fault or negligence in the settlement.