Texas is suing the utility company whose downed power lines sparked the largest wildfire in state history, a deadly blaze that destroyed homes and livestock and charred miles of landscape, causing more than $1 billion in damage.

The lawsuit filed Tuesday by Texas Attorney General Ken Paxton accuses Southwestern Public Service Company, which operates in Texas as Xcel Energy, of negligence in its upkeep of aging utility poles. It seeks to recover economic damages incurred by the state and prevent the company from passing those costs on to customers.

The Smokehouse Creek fire

The Smokehouse Creek fire killed three people in 2024, burning through more than 1,500 square miles (3,885 square kilometers) in Texas before spilling into neighboring Oklahoma. 

A previous lawsuit filed by Melanie McQuiddy in March 2024 against Southwestern Public Service Company and Osmose Utilities Services, a Georgia-based contractor that inspects wood utility poles, claimed that the fire started on Feb. 26 when a pole, which the firms "failed to properly inspect, maintain, and replace," cracked and snapped off at its base.  

Texas A&M Forest Service investigators determined the fire ignited when a decayed utility pole snapped and fell, dropping Xcel power lines onto dry grass.  

The Minnesota-based company has acknowledged that its equipment appeared to have sparked the wildfire. Paxton's lawsuit claims the company neglected to replace aging utility poles in the windswept Panhandle, some of which were nearly 100 years old and more than twice their typical lifespan of 40 years.

In August 2025, Paxton launched an investigation connected to the fire.    

"Xcel's blatant negligence killed three Texans and caused unfathomable destruction in the Texas Panhandle," Paxton said. "The company made false representations about its safety commitments and ignored warnings that its aging infrastructure needed immediate repair and to be updated."

The fatalities related to the fire included a woman who was overtaken by flames after getting out of her truck, and another woman whose remains were found in her burned home. A fire chief in one of the hardest hit towns died while responding to a house fire.

"Xcel has admitted in public statements that its utility pole was the start of the wildlife," Paxton said in a statement. "The Smokehouse Creek Fire was entirely preventable."

The company disputed Paxton's claims of negligence and noted it had already accepted responsibility for equipment failure. Xcel said it has already paid out more than $361 million to settle 212 of 254 claims.

"When the Attorney General's office approached us earlier this year requesting information, we worked with them in good faith to try and find a consensus solution," Xcel said in a statement. "They chose to file litigation instead. We will review this litigation and vigorously defend ourselves against these allegations."