Texas filed a lawsuit Tuesday against Xcel Energy, the Minnesota-based utility that operates as Southwestern Public Service Company in Texas. The suit claims the company’s failure to replace aging utility poles sparked the Smokehouse Creek wildfire, the largest fire in Texas history, which destroyed homes, livestock, and charred more than 1,500 square miles of land before spilling into Oklahoma. The lawsuit seeks to recover economic damages the state incurred and to prevent Xcel from passing those costs on to customers.
The Lawsuit
The Attorney General’s office alleges that Xcel’s negligence in maintaining utility infrastructure caused the fire. The lawsuit accuses the company of neglecting to replace poles in the windswept Texas Panhandle, some of which were nearly 100 years old-more than twice the typical lifespan of 40 years.
The Fire
Investigators from the Texas A&M Forest Service determined the blaze ignited when a decayed pole snapped, dropping Xcel power lines onto dry grass. The resulting fire, which began in 2024, killed three people and burned an area larger than the state of New Mexico.
Paxton said, ‘Xcel’s blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle.’ He added, ‘The company made false representations about its safety commitments and ignored warnings that its aging infrastructure needed immediate repair and to be updated.’
The victims included a woman who was overtaken by flames after getting out of her truck, a second woman whose remains were found in her burned home, and a fire chief who died while responding to a house fire in one of the hardest-hit towns.
Company Response
Xcel disputes the negligence claims, noting it has already accepted responsibility for equipment failure. The company says it has paid more than $361 million to settle 212 of 254 claims related to the disaster.
In a statement, Xcel said, ‘When the Attorney General’s office approached us earlier this year requesting information, we worked with them in good faith to try and find a consensus solution.’ It continued, ‘They chose to file litigation instead. We will review this litigation and vigorously defend ourselves against these allegations.’
The lawsuit reflects the state’s effort to hold utility companies accountable for infrastructure that may pose wildfire risks. It also highlights the broader debate over how utilities should maintain aging equipment and respond to warning signs.
Texas has faced increasing scrutiny over wildfire prevention, especially after the 2020 and 2021 fires that also involved utility lines. The Smokehouse Creek incident underscores the potential cost of delayed maintenance.
The outcome of the lawsuit could set a precedent for how states recover damages from utility companies and may influence future regulatory actions.
Key Takeaways
- Texas sues Xcel Energy over Smokehouse Creek wildfire that killed three and caused $1B in damage.
- The fire burned 1,500 square miles and was sparked by a snapped, decayed utility pole.
- Xcel has already paid $361 million in settlements and now faces litigation over negligence claims.
