Texas AG sues energy utility over Smokehouse Creek Fire

(CN) — Texas Attorney General Ken Paxton sued utility company Xcel Energy Tuesday, claiming its negligence led to the record-breaking Smokehouse Creek Fire, which killed three people and is estimated to have caused over $1 billion in damage.

The fire, which burned through over 1 million acres of the Texas panhandle and western Oklahoma in early 2024, is the largest recorded wildfire in Texas history. It started on February 26, 2024, when a decayed utility pole owned by Xcel snapped during high winds, causing the pole’s power lines to ignite dry grass. The fire burned for nearly three weeks before being declared fully contained on March 16.

In a complaint filed in Hemphill County District Court, Paxton claims Xcel had been notified weeks before the fire started that the pole needed to be replaced.

“But instead of replacing its deteriorated equipment, Xcel ignored the warning and chose to place marginal profits — amounting to only a few thousand dollars — above the safety and wellbeing of Texans, the state’s property and the natural resources enjoyed by all people,” Paxton writes in the complaint.

A day after the fire started, a second Xcel utility pole fell, starting the 687 Reamer Fire, which later joined with the Smokehouse Creek Fire.

Paxton is suing Xcel for negligence, gross negligence, trespass, public nuisance, unjust enrichment and violations of Texas’ Public Utility Regulatory Act and agency rules. He also claims the company violated the Texas Deceptive Trade Practices Act by falsely marketing its utility services as safe and reliable.

In a press release announcing the lawsuit, Paxton’s office said Xcel failed to replace aging utility poles, including some that were almost 100 years old — double their typical forty-year lifespan.

“Xcel’s blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle,” Paxton said in the statement. “The company made false representations about its safety commitments and ignored warnings that its aging infrastructure needed immediate repair and to be updated. This created a substantial wildfire risk, which Xcel did nothing about. There must be accountability for the death and devastation the company caused. 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.”

In a statement to Courthouse News Service, Xcel said it is “deeply disappointed” that Paxton chose to bring the suit.

“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,” the company said. “Even now, the work to fairly compensate those affected continues. To date, Xcel Energy has agreements for settlements totaling $361 million for 212 of 254 total claims made against the company.  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. They chose to file litigation instead. We will review this litigation and vigorously defend ourselves against these allegations.”