Texas sues utility company to recover damages from historic wildfireTexas is suing the utility company whose downed power lines sparked the largest wildfire in state historyByJIM VERTUNO Associated PressDecember 16, 2025, 3:04 PMAUSTIN, Texas -- Texas has sued 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 state 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 killed three people in 2024, burning through more than 1,500 square miles (3,885 square kilometers) in Texas before spilling into neighboring Oklahoma. Texas A&M Forest Service investigators determined it was ignited when a decayed utility pole snapped and fell, dropping Xcel power lines onto dry grass.