Texas Attorney General Ken Paxton has filed a lawsuit against Southwestern Public Service Company — which operates in Texas as Xcel Energy — alleging the company’s negligence caused the 2024 Smokehouse Creek Fire, which state officials have described as the largest wildfire in recorded Texas history.
According to the lawsuit, filed by the Office of the Attorney General, the Smokehouse Creek Fire burned more than one million acres across the Texas Panhandle, killed three Texans, destroyed hundreds of homes, and resulted in more than $1 billion in economic losses, including widespread damage to agriculture, ranching, wildlife, and local communities.
“Xcel’s blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle,” Paxton said in a statement announcing the lawsuit. “The company made false representations about its safety commitments and ignored warnings that its aging infrastructure needed immediate repair and to be updated.”
The lawsuit follows an investigation Paxton launched in August 2025 into utility companies connected to the Smokehouse Creek Fire and the nearby Windy Deuce Fire. At the time, Paxton’s office issued civil investigative demand letters to Xcel Energy, Osmose Utilities Services, and Southwestern Public Service Company seeking documents related to the fires.
In the August announcement, Paxton said utility infrastructure played a role in the fires and raised concerns that companies may have failed to properly maintain equipment, potentially prioritizing environmental, social, and governance (ESG) or diversity, equity, and inclusion (DEI) initiatives over public safety.
“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 at the time.
According to the newly filed lawsuit, Xcel has stated publicly that one of its utility poles was the origin point of the Smokehouse Creek Fire.
The State alleges the fire was entirely preventable and claims that Xcel failed to replace aging infrastructure, including utility poles nearly 100 years old — more than twice their typical 40-year lifespan.
The lawsuit alleges Xcel ignored known wildfire risks and failed to take corrective action despite warnings that its equipment required immediate repair or replacement. The State contends these failures directly contributed to the outbreak and spread of the fire.
In addition to the three fatalities, the Smokehouse Creek Fire is alleged to have killed more than 15,000 head of cattle and caused extensive loss of wildlife habitat across the Panhandle.
The State seeks to recover economic damages, including property damage and the loss of wildlife and natural resources, as well as civil penalties for alleged violations of Texas law. The lawsuit also asks the court to order injunctive relief requiring Xcel to take corrective action to prevent similar disasters in the future.
“Xcel owes a duty of care to the residents and customers in its service area,” Paxton said. “Xcel failed this duty, and I am here to hold them accountable.”
The case marks one of the most significant legal actions taken by the State of Texas related to wildfire liability and utility infrastructure failures.
The lawsuit has been filed in state court. Xcel Energy has not yet publicly responded to the filing.
