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(Bloomberg) — Texas Attorney General Ken Paxton has sued Xcel Energy Inc., accusing the utility company of “blatant negligence” over its role in the Smokehouse Creek wildfire that killed three people and caused more than $1 billion in damage last year.
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“The company made false representations about its safety commitments and ignored warnings that its aging infrastructure needed immediate repair and to be updated,” according to a statement from the AG’s office Tuesday.
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Paxton said in August that he was investigating Xcel for its role in the Smokehouse fire and another blaze, claiming the company may have prioritized environmental and diversity goals over maintenance and safety. Xcel has acknowledged that its infrastructure was likely involved in starting the Smokehouse fire but has refuted accusations of negligence.
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The lawsuit filed in a state court in Hemphill County in the Texas panhandle is the latest example of the pressure on utilities companies like Xcel to provide electricity across the US West without sparking wildfires, especially during extreme weather events. Power companies across the US are increasingly opting to turn off electricity to prevent downed power lines and other equipment from sparking catastrophic wildfires.
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Xcel shares fell as much as 3.1% on Tuesday.
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The company said it was “deeply disappointed that the Attorney General decided to pursue this litigation” and that it has set up a fund for victims that has already paid out $361 million.
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“Though Xcel Energy disputes claims that it acted negligently in maintaining and operating its infrastructure, we accepted responsibility from the beginning and set up an expedited claims process,” the company said in a statement. “Even now, the work to fairly compensate those affected continues.”
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“Though Xcel Energy disputes claims that it acted negligently in maintaining and operating its infrastructure, we accepted responsibility from the beginning and set up an expedited claims process.
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