Texas Attorney General Ken Paxton has announced an official investigation into several utility companies allegedly connected to two of the most destructive wildfires in Texas history — the 2024 Smokehouse Creek Fire and Windy Deuce Fire — which together scorched more than 1 million acres in the Texas Panhandle.
The announcement follows months of community outcry and legal action after the February–March fires killed at least three people, destroyed hundreds of homes, and caused massive ecological and agricultural damage, including the deaths of thousands of cattle.
According to Paxton’s office, the investigation will examine whether the companies acted negligently by failing to maintain their infrastructure, and whether their business priorities may have shifted resources away from safety to focus instead on environmental, social, and governance (ESG) initiatives or diversity, equity, and inclusion (DEI) programs.
“It is unconscionable that utility companies might have sacrificed infrastructure maintenance, public safety, and the well-being of our Texas communities for radical ESG and DEI goals,” Paxton said in a prepared statement. “If any companies connected to these devastating fires have violated Texas law, they will be held accountable. We will not stop fighting for those who were victimized by these fires.”
Fires Among the Largest in Texas History
The Smokehouse Creek Fire began in late February 2024 and quickly became one of the largest recorded wildfires in the state’s history, burning through rural communities, ranchlands, and natural habitats. In total, the fire consumed over 1 million acres across the Texas Panhandle and parts of western Oklahoma.
The nearby Windy Deuce Fire also ignited during the same period, adding to the devastation. These two fires, along with at least two other smaller blazes, were later determined to have been started by electrical power lines, according to investigators.
Preliminary findings linked the Smokehouse Creek Fire to power lines owned and operated by utility companies including Xcel Energy, Southwestern Public Service Company, and Osmose Utilities Services. The Windy Deuce Fire, on the other hand, was traced to power lines associated with an oil and gas operation.
In total, at least four wildfires during that period were connected to electrical equipment, two of which were owned by Xcel Energy and two by oil and gas companies.
Negligence Allegations and Legal Settlements
Multiple lawsuits have already been filed against the utility companies involved, alleging negligence in equipment maintenance and safety protocols. Some companies have begun settlement discussions with affected residents and property owners, though many legal disputes remain unresolved.
Critics argue that these fires highlight long-standing gaps in oversight of rural electrical infrastructure. In certain parts of Texas, particularly where oil and gas producers operate their own private power lines, maintenance responsibilities fall into what experts describe as a regulatory “no man’s land.” In these cases, it can be unclear which state or federal safety standards apply — and enforcement by agencies such as the Texas Railroad Commission or the Public Utility Commission is inconsistent at best.
The 2024 state legislative committee tasked with investigating the Panhandle fires recommended changes to clarify maintenance requirements and strengthen accountability for utility operators. However, few of those recommendations have been implemented to date.
Focus on ESG and DEI Policies
While many wildfire investigations focus solely on maintenance records and technical failures, Paxton’s office is also examining whether utility companies diverted resources away from safety and infrastructure upkeep in favor of ESG and DEI programs.
ESG is a corporate framework that measures a company’s performance on environmental sustainability, social responsibility, and corporate governance. DEI refers to organizational initiatives promoting diversity, equity, and inclusion in the workplace.
Paxton has been outspoken in his criticism of both ESG and DEI, arguing that such policies can become “politically motivated distractions” if implemented without regard to operational safety. His office’s statement suggests that if companies shifted resources toward these programs at the expense of basic maintenance — such as replacing aging power poles, inspecting lines, and clearing vegetation — they could face legal consequences under Texas law.
Civil Investigative Demands Issued
As part of the investigation, the Attorney General’s Office has issued civil investigative demand (CID) letters to Xcel Energy, Southwestern Public Service Company, and Osmose Utilities Services. These letters require the companies to produce internal records, maintenance logs, and other documents related to the Smokehouse Creek and Windy Deuce fires.
A CID functions similarly to a subpoena in civil cases, giving the state the legal authority to compel companies to provide evidence. The information gathered will help determine whether the companies violated any Texas statutes — including those related to public safety, environmental protection, and corporate accountability.
The timeline for completing the investigation has not been publicly disclosed. Depending on the findings, potential consequences could range from civil penalties and mandatory safety upgrades to criminal charges in extreme cases of willful negligence.
Wildfire Risks from Power Infrastructure
The Panhandle region’s dry climate, high winds, and wide-open rangeland make it particularly susceptible to fast-moving wildfires. Power lines, if poorly maintained or inadequately inspected, can spark blazes when cables snap, insulation fails, or lines come into contact with dry vegetation.
In the last two decades, wildfires in the region have been ignited by a variety of causes, including arson, dragging chains from vehicles, fireworks, discarded cigarettes — and, increasingly, electrical equipment.
Experts say preventing utility-caused wildfires often comes down to routine inspections, timely replacement of aging infrastructure, and aggressive vegetation management. These measures can be costly for companies but are far less expensive than the long-term economic and environmental toll of a major wildfire.
Community and Environmental Impacts
The human and ecological toll from the 2024 fires has been profound. In addition to the loss of life and livestock, ranchers and farmers have reported devastating economic setbacks. Many have struggled to rebuild fences, barns, and water systems while facing steep declines in pastureland productivity.
Ecologically, the fires destroyed wildlife habitats, damaged soil structure, and increased erosion risks. Recovery in some areas could take years, if not decades.
For displaced residents, insurance disputes and the slow pace of rebuilding have compounded the trauma. Community advocates have argued that stronger state oversight of utilities could prevent similar tragedies in the future.
Next Steps in the Investigation
Paxton’s office has not indicated when it expects to announce results from the investigation. However, the Attorney General has made clear that his team will pursue the matter aggressively.
The investigation’s outcomes could also influence future legislative efforts to tighten utility safety standards and clarify regulatory jurisdiction in rural Texas. If negligence is proven, the case could serve as a precedent for holding utility companies financially and legally responsible for wildfire damage.
Until then, residents of the Texas Panhandle continue to recover from what many call an unprecedented disaster — one whose causes, and potential preventability, remain at the heart of the state’s latest legal battle.
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