Texas Sues Utility Company Xcel Over ‘Blatant Negligence’ in Fatal Wildfire

Core Viewpoint - Texas Attorney General Ken Paxton has filed a lawsuit against Xcel Energy Inc. for alleged negligence related to the Smokehouse Creek wildfire, which resulted in three fatalities and over $1 billion in damages [1][2]. Group 1: Allegations and Lawsuit Details - The lawsuit claims Xcel Energy made false representations regarding its safety commitments and ignored warnings about the need for infrastructure repairs [1]. - Paxton's investigation suggests that Xcel may have prioritized environmental and diversity goals over maintenance and safety [2]. - The lawsuit includes accusations of violating state consumer protection laws by misrepresenting the safety and reliability of its equipment [5]. Group 2: Company Response and Financial Implications - Xcel Energy has acknowledged its infrastructure's involvement in the wildfire but disputes the negligence claims, stating it has accepted responsibility and set up a claims process [5]. - The company has established a fund for victims, which has already disbursed $361 million [4]. - Xcel's shares fell by as much as 4.34% following the announcement of the lawsuit [1]. Group 3: Legal and Regulatory Actions - The lawsuit seeks punitive damages for damage to state property and civil fines, as well as restitution for consumers affected by the fire [6]. - Paxton is also requesting a court order for Xcel to replace all utility poles and provide public warnings about wildfire risks [7]. - The lawsuit aims to prevent Xcel from passing fire-related costs onto consumers through rate increases [7].