The Texas Office of the Attorney General announced on Tuesday that it has filed a lawsuit against Minnesota-based electric company Xcel Energy, accusing the utility of negligence in the 2024 Smokehouse Creek Fire that became the largest wildfire in Texas history.
Investigation into the Wildfires
Texas A&M Forest Service investigators determined that power lines were the ignition source for both the Smokehouse Creek Fire and the Windy Deuce fire. Together, these two blazes consumed nearly 2,000 square miles across Texas and Oklahoma, leaving widespread damage and loss of life.
Attorney General’s Legal Action
Attorney General Ken Paxton publicly criticized Xcel Energy for “false representations about its safety commitments” and for ignoring warnings about infrastructure problems. He argued that these failures “created a substantial wildfire risk.”
Paxton said, “Xcel’s blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle.” He continued, “There must be accountability for the death and devastation the company caused.”
Paxton added, “Xcel owes a duty of care to the residents and customers in its service area. Xcel failed this duty, and I am here to hold them accountable.”
Xcel Energy’s Response
Xcel Energy told KXAN that it had worked with the OAG “in good faith” on an information request earlier this year about the wildfire. A company spokesperson said the utility hoped “to try and find a consensus solution.”
“We are deeply disappointed that the Attorney General decided to pursue this litigation,” the company’s statement reads. “We will review this litigation and vigorously defend ourselves against these allegations.”
The spokesperson also noted that the company has agreed to $361 million in 212 settlements, with 42 claims still pending. “Though Xcel Energy disputes claims that it acted negligently in maintaining and operating its infrastructure, we accepted responsibility from the beginning and set up an expedited claims process. Even now, the work to fairly compensate those affected continues,” the company said further.
Settlement and Claims
The $361 million settlement covers 212 claims that have already been resolved, but 42 additional claims remain unresolved. Xcel Energy maintains that it has taken steps to address infrastructure concerns and to compensate affected residents.
The company’s statement emphasizes that it has “accepted responsibility from the beginning” while also asserting that it disputes allegations of negligence. The expedited claims process is intended to ensure timely compensation for those impacted by the fires.
Legal Objectives and Implications
The lawsuit was filed in the district court of Hemphill County, Texas. It seeks to compel Xcel Energy to harden its power distribution system and to allow the state of Texas to recover damages arising from the fires.
By requiring infrastructure hardening, the court would mandate that Xcel Energy upgrade or reinforce power lines and related equipment to reduce the likelihood of future fires. The lawsuit also seeks monetary damages to cover losses suffered by Texas residents and businesses.
The case underscores the growing scrutiny of utility companies over wildfire risk, particularly in regions where dry conditions and aging infrastructure intersect. Texas’s legal action could set a precedent for how state attorneys general address utility liability in wildfire events.
Conclusion
The Texas Attorney General’s lawsuit against Xcel Energy marks a significant escalation in the legal response to the 2024 Smokehouse Creek Fire. With claims of negligence, false safety assurances, and a substantial wildfire risk, the case highlights the tension between utility operations and public safety. Xcel Energy’s settlement commitments and claims process will be closely watched as the lawsuit proceeds in Hemphill County. The outcome may influence how utilities across the United States manage infrastructure and respond to wildfire threats.
