One Spark Away

Why Liability Reform Matters

Wildfires are a persistent, growing threat in our region. We have seen firsthand the devastation they bring, standing shoulder-to-shoulder with our members during the Spring Creek and Oak Ridge fires and helping rebuild in the aftermath.

At San Isabel Electric, we take wildfire risk seriously. Every day, we work to keep our system safe. We have a comprehensive wildfire mitigation program, including expanded line-clearance operations, system hardening, LiDAR-supported vegetation management, coordination with landowners and emergency responders, and a new Pano AI early-fire-detection camera pilot project funded largely by Tri-State, our power supplier. These efforts, and many more, protect our homes, lands, and lives. But here is the hard truth: Even when we do everything right, one fire could mean bankruptcy.

The Challenge

Across the West, utilities have faced uncapped litigation claims after wildfires, paying millions or even billions in damages. Some have gone bankrupt. In all cases, rates for electric consumers dramatically increased to cover costs.

For cooperatives like SIEA, that is an impossible scenario. We do not have deep pockets. We are a not-for-profit cooperative and operate on an at-cost basis. Every dollar spent comes directly from our members. Rising insurance premiums, fueled by the risk of uncapped litigation, make it increasingly difficult to secure adequate coverage. In fact, some carriers are exiting the market entirely, leaving some cooperatives exposed.

How Policy Can Help

Colorado’s electric cooperatives, including SIEA, are teaming up with state leaders to develop bipartisan legislation that creates a fair balance. If a utility adopts and maintains stringent wildfire mitigation plans, they should receive some level of liability protection.

The legislation recognizes the need to make sure homeowners are compensated for damage while also balancing the needs of communities that depend on consistent, affordable electric service.

Limiting exposure to unlimited litigation and establishing damage caps will help keep insurance coverage attainable. For you, that means continued low-cost rates and the safe, reliable electricity you depend on.

We are grateful for the bipartisan leadership spearheading this effort to protect the member-consumers of Colorado’s electric cooperatives. If you believe in this effort, please contact your state representative and senator and urge them to support legislation protecting electric cooperatives from unlimited wildfire liability.

Donation Impact Report

San Isabel Electric operates under seven cooperative principles which includes practicing a Concern for Community. Each board member lives in the community they serve, and we all work together to help our communities thrive.

Each month, the Board of Directors donates to community projects to help keep our communities strong and growing. All philanthropic funding comes from unclaimed capital credits not from member rates and electric bills. Our process for using unclaimed capital credits follows state law for unclaimed property. Unclaimed capital credits cannot be used for system improvements, maintenance, payroll or other overhead costs. For more information about capital credits and unclaimed capital credits, visit https://www.siea.com/capitalcredits.