Xcel Energy Braces for Lengthy Legal Battle Over Texas Wildfire

The utility company faces years of litigation and financial risks after downed power lines ignited the state's largest wildfire, consuming over 1 million acres.

Xcel Energy Inc. faces years of legal battles over the Smokehouse Creek Fire, the largest wildfire in Texas history, which was ignited by downed power lines.
The wildfire has consumed over 1 million acres and resulted in at least two deaths, with Xcel acknowledging its equipment's involvement but disputing negligence.
Texas A&M Forest Service investigation identified a decayed power pole as the ignition source, while Xcel faces over 300 lawsuits from a previous fire in Colorado.
Xcel has about $500 million in insurance, but faces financial risks due to Texas not having a liability cap for non-economic losses.
The litigation process, including discovery, could take years, with similar cases in other states providing a precedent for lengthy legal proceedings.