Who Pays the Price When the Lights Go Out?

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, with restaurants dumping spoiled food and workers missing out on wages. Families struggled to keep homes warm and medical devices running. The economic impact was severe, and it's unfair to expect communities to bear these costs alone. Wildfires are a real threat, as seen in the devastating Marshall Fire in Boulder. This event destroyed over 1, 000 homes and 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. 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?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, while 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? 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, and advocating for grid improvements. But cities don't regulate utilities or control when power is shut off. 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 and establish clear standards for PSPS events. This way, wildfire risk reduction won't come at the unchecked expense of local communities, businesses, and workers. 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.