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Xcel Energy Sued Again By Residents, This Time Over Mudslides

November 21, 2005

Less than two months after Xcel Energy confirmed a settlement had been reached in a lawsuit by Jamestown residents over damage from a wildfire sparked by a power line, the power company is being sued again, this time over mudslides.

In a lawsuit filed in district court in Boulder, Jamestown and 18 families claim the company is responsible for the loss of homes, views and access, while the town also claims the fire caused the walls of James Canyon to become unstable. An Xcel spokeswoman said the company does not comment on pending litigation.

At least three slides hit the town this summer, including one that buried a parked car, after rains fell on canyon walls denuded of vegetation by the October 2003 fire. Mayor Ken Lenarcic said the town can't afford bigger culverts and drainage channels that may be needed to prevent the slides. The lawsuit seeks unspecified damages.

In September, Xcel and an attorney for 49 plaintiffs confirmed that the first lawsuit related to the fire filed last year had been settled for an undisclosed amount. The 3,500-acre fire burned at least 18 houses. Investigators said the fire was caused by a spark from power lines downed by high winds.