Xcel Faces Texas AG Lawsuit and $460M Wildfire Losses Over Pole Inspections
XEL is trading near its 52-week low of $71.59 (1.1% above the low) on light trading volume (0.2× avg).
Summary
A Wall Street Journal investigation details a Texas trader's campaign against Xcel Energy over pole inspection records, alleging negligence in the 2024 Smokehouse Creek Fire. The Texas Attorney General sued Xcel in December, claiming inspections showed deteriorating poles, some in service since 1936. Xcel estimates wildfire losses of at least $460 million and has paid nearly $400 million in settlements through June. The company agreed to inspect 35,000 wooden poles annually in Texas and replace damaged ones quickly. A coalition of 10 towns is pressing for safety improvements and even seeking to replace Xcel with a local co-op. This adds regulatory and legal pressure on Xcel, which is already trading near its 52-week low. Watch for further court rulings on inspection records and any additional wildfire-related claims.
At the time of this announcement, XEL was trading at $72.39 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $45.2B. The 52-week trading range was $71.59 to $84.23. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.