The Smokehouse Creek fire has burned more than 1 million acres across the Texas panhandle.
Xcel Energy said Thursday that its equipment appears to have been an ignition source of the Smokehouse Creek Fire in Texas, but the utility denied it was negligent as it faces legal threats over liability in the biggest wildfire in the state's history.
The Smokehouse Creek fire has burned more than 1 million acres across the Texas panhandle. Minneapolis-based Xcel serves through area through its subsidiary Southwestern Public Service Company.
"The people in this region are our friends, neighbors and relatives," said CEO Bob Frenzel in a statement. "We are deeply saddened by the losses incurred in this community, and we are committed to supporting its renewal and recovery."
Last week, Xcel said it was warned by a law firm representing property insurers that the utility could face liability in the wildfire, causing the company's stock to fall nearly 9%. At least one lawsuit has since been filed, by a Texas homeowner whose house was destroyed.
Xcel was asked to preserve a fallen utility pole. On Wednesday, Bloomberg News reported that pole was marked with a "do not climb" sign before the wildfire began.
Xcel said Thursday it "acknowledges that its facilities appear to have been involved in an ignition of the Smokehouse Creek fire."
But it disputed that it acted negligently in maintaining and operating its infrastructure. The company said anyone with property destroyed or livestock killed in the blaze should submit a claim to Xcel.
Xcel said at least 64 occupied homes have been destroyed by the fire as of March 5 based on government information. Xcel said it was not responsible for the nearby Windy Deuce fire.
Texas Gov. Greg Abbott said last week the several wildfires scorching the region may have destroyed as many as 500 structures. The Smokehouse Creek fire is the largest of the group.
Separately, Xcel faces legal challenges over the December 2021 Marshall fire near Boulder, Colo., that claim the company is partly responsible for the destructive blaze. Xcel denies it is at fault and claims the sheriff's investigation that concluded its equipment caused one of two blazes that merged is flawed.
However, in January, Xcel said in its quarterly earnings report that if the company was found liable and required to pay damages, the amount could exceed its insurance coverage of roughly $500 million and hurt its "financial condition, results of operations or cash flows."
That fire burned over 6,000 acres, killing two people and destroying over 1,000 residential buildings and reportedly causing about $2 billion in property damage.
Xcel stock was up roughly 3% Thursday morning.
https://www.startribune.com/xcel-texas-smokehouse-creek-fire-equipment-played-role/600349153/
