Texas Attorney General Ken Paxton has filed a lawsuit against Southwestern Public Service Company, which operates as Xcel Energy, alleging the utility played a role in causing the Smokehouse Creek Fire that tore through the Texas Panhandle in 2024.
The lawsuit follows an investigation Paxton launched in August into multiple utility companies connected to the Smokehouse Creek Fire and the Windy Deuce Fire, two major wildfires that caused widespread damage across the region. According to investigators and company representatives, the Smokehouse Creek Fire was ignited by a power line owned and operated by utility companies including Xcel Energy, Southwestern Public Service Company, and Osmose Utilities Services. The Windy Deuce Fire, by contrast, was determined to have started from power lines connected to an oil and gas operation.
In announcing the lawsuit, Paxton accused Xcel Energy of failing to properly maintain its infrastructure, arguing that those failures contributed to deadly and destructive consequences.
“Xcel’s blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle,” Paxton said. “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.”
According to the Office of the Attorney General, the lawsuit seeks to recover economic damages allegedly suffered by the state, including property damage, the loss of wildlife and habitat, and civil penalties for violations of Texas law. The state is also asking the court to require Xcel Energy to take corrective actions aimed at preventing similar incidents in the future.
Xcel Energy has disputed claims that it acted negligently. The company previously said it conducted its own internal review of the fires in addition to investigations carried out by outside organizations. It has also stated that it does not believe its equipment played any role in starting the Windy Deuce Fire.
In the months following the Smokehouse Creek Fire, Xcel Energy began compensating people who filed claims through a voluntary claims process. The company has resolved 187 of 253 claims related to the fire and, as of August, committed to $176 million in settlement agreements, with $123 million already paid. In its most recent statement, the company said it now has settlement agreements totaling $361 million for 212 of 254 total claims made against it.
Responding to the lawsuit, an Xcel Energy spokesperson said the company was disappointed by the Attorney General’s decision to pursue litigation.
“We are deeply disappointed that the Attorney General decided to pursue this litigation,” the spokesperson said. “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 spokesperson added that Xcel Energy cooperated with the Attorney General’s office earlier this year when information was requested, but said those discussions did not result in an agreement.
“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,” the statement said. “We will review this litigation and vigorously defend ourselves against these allegations.”
In earlier comments during the investigation phase, an Xcel Energy spokesperson said the company and other utilities involved would cooperate with state officials as they worked to determine the causes of the Panhandle fires. The company has also said it has worked with state and community leaders to address issues raised by last year’s fires and remains committed to preparing for and preventing future wildfire events.
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