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Xcel Energy named in 15 lawsuits over 2024 Texas panhandle fires
2 Min Read
Xcel Energy has been named in 15 lawsuits in connection with the Smokehouse Creek Fire in the Texas Panhandle, which burned more than 1 million acres in March. Company leaders acknowledged that power lines owned by Xcel Energy appear to have played a role in igniting the fire during a first quarter earnings call on April 25.
So far, Xcel Energy estimates its liabilities from the fire will run $215 million, but Chairman, President and CEO Bob Frenzel warned investors that this preliminary figure could increase as more information about the extent of the fire’s damage becomes available.
Xcel Energy plans to accelerate or launch multiple new wildfire mitigation policies, and has for the first time established a policy to proactively de-energize the grid during severe weather that could fuel wildfires, Frenzel said. Company leadership is also exploring potential state and federal-level policy solutions to limit utilities’ liability for wildfires.
Dive Insight:
Xcel Energy’s $500 million insurance policy should offset the cost of its liability for the Smokehouse Creek Fire — believed to be the largest wildfire in Texas state history. But the company already pays a $400 million premium for this wildfire coverage, and Xcel company leaders say they believe it is time for a legislative solution.
“There are precedents at the federal level — you see stuff like the FDIC or FEMA or flood insurance or other types of programs,” said Brian Van Abel, Xcel Energy executive vice president and chief financial officer. “So I think about where the federal government could help — and this applies to the state level too — is having an approved wildfire mitigation plan that can be reviewed by an agency, and then if you are in compliance … then you have access to some form of backstop insurance program.”
To read the complete article, visit Utility Dive.
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