Overview

• 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.