Xcel Energy (XEL) Sued for ‘Blatant Negligence’ in Wildfire Incident

Core Insights - Xcel Energy Inc. (NASDAQ:XEL) is recognized as one of the 11 best utility stocks to invest in according to hedge funds [1] - The company is currently facing a lawsuit for alleged negligence related to a significant wildfire incident in Texas, which resulted in three fatalities and over $1 billion in damages [4] - Morgan Stanley has reduced its price target for Xcel Energy from $84 to $79 while maintaining an 'Equal Weight' rating, citing potential growth in data center demand but also highlighting risks from rising electricity bills [3] Company Overview - Xcel Energy engages in the generation, purchasing, transmission, distribution, and sale of electricity in the United States, operating through Regulated Electric Utility and Regulated Natural Gas Utility segments [2] Legal Issues - The lawsuit filed by the Texas Attorney General seeks compensation for economic losses and civil penalties, as well as a court order for corrective actions to prevent future incidents [5] - In response to the lawsuit, Xcel Energy expressed disappointment and noted that it has already established a fund for wildfire victims, with $361 million in compensation paid out [5]