Rainbow Shultz thought she was in the clear. The chef and owner of The Jamestown Mercantile Cafe received an email from Xcel Energy on Dec. 16, 2025, saying she was not expected to lose power ahead of a powerful windstorm. So she stocked up her food inventory.
The next day, Xcel cut power to tens of thousands of customers as part of a “public safety power shutoff,” or PSPS, aimed at preventing damaged power lines from sparking a wildfire amid high winds and dry conditions.
Shultz was among those who lost power. Her inventory spoiled, costing her about $12,000, plus five days of lost business.
“It’s definitely enough to close my business and lose employment for my employees,” she told the Public Utilities Commission on Jan. 28.
The commission, which oversees utilities in Colorado, held a hearing as part of a pre-rulemaking proceeding to inform possible new state rules for planned power shutoffs.
The December 2025 outages followed an extreme wind event that elevated wildfire risk across the region, prompting Xcel to proactively shut off power to prevent downed lines from sparking fires. In the City of Boulder, nearly two-thirds of Xcel customers lost power during the outages. Xcel intentionally cut power to about 49,900 customers during the Dec. 17 windstorm and 67,000 customers during the Dec. 19 windstorm. Others lost power due to damage.
A frequent complaint following the latest shutoff was that customers were not compensated by Xcel for losses from the outage, which left some without power for more than five days. Residents can submit a claim for losses, but business owners said those claims are often rejected.
Shultz and others said the utility should “either reimburse customers for their loss or be required to put some of their profit into a sustainable system such as underground lines.” She said she hopes Xcel is required to build a power system “that works in this climate that we live in.”
Nick Cole, a community relations manager for Xcel, told business leaders that because Xcel provides advance notice for PSPS events, claims for financial losses are unlikely to be approved.
“Since we are going to notify customers ahead of time, those claims have a harder time getting through,” Cole said during a forum with the Boulder Chamber this week.
In addition to residents and businesses, the City of Boulder has urged Xcel to compensate customers. In a formal letter, the Boulder City Council requested that Xcel “properly compensate those who have suffered monetary damage.” Deputy City Manager Chris Meschuk said businesses took financial losses, workers lost wages, and residents and businesses lost food and medicine. He said “financial resources should be available to help those that are impacted repeatedly by these extended outages.”
“It should never really have to come to the point where shutting off power, causing massive disruption, threatening the lives and the well-being of the most vulnerable in our community, is the only choice for avoiding utility-ignited wildfire,” Meschuk told commissioners during the PUC hearing. “We can’t keep letting the exact same people and businesses pay the price for these outages.”
Jonathan Singer of the Boulder Chamber said a survey of about 300 businesses found they experienced an average financial loss of $25,000 per business, with nine respondents reporting losses exceeding $100,000. More than 20,000 workers were affected.
Singer suggested creating a financing mechanism to incentivize Xcel to invest more in undergrounding lines, hardening poles and wires, and creating microgrids. He and others said the company should also pay for refrigerator trucks and subsidize backup generators for more residents.
He also asked the PUC to work with the Division of Insurance to create a new insurance product that businesses could use for power shutoffs. He also suggested the utility provide fixed payouts, such as $2,500 for businesses and $200 for residents, following outages without requiring customers to navigate a standard claims process. Pacific Gas and Electric Company in California recently announced a similar program following an outage.
During the meeting, the Boulder Chamber and local business owners asked if Xcel would set up a dedicated fund to support the community following the multi-day outages.
“As far as funding goes, that’s something that we can take back with our team and discuss,” Cole said. “But at this moment, I’m not aware of any particular fund.”