Texas Fires Trigger Drop for Xcel With Law Firm Alleging Link
- Firm asked Xcel to preserve downed utility pole in fire zone
- Utilities are under pressure to protect against wild weather
A charred vehicle sits near the ruins of a home after the property was burned by the Smokehouse Creek Fire on Feb. 28.
Photographer: Ty O'Neil/APThe worst-ever Texas wildfire sent shares of Xcel Energy Inc. plunging after a law firm said it might be linked to the disaster, the latest sign that potential ties between power companies and blazes are triggering volatility in once-sleepy utility stocks.
The unnamed firm said Xcel may be responsible for damages and asked the company to preserve as evidence a fallen utility pole located near the fire’s potential area of origin, Xcel said in a regulatory filing Thursday. The company’s shares fell as much as 9.7%, the most since March 2020 — a drop that reflects concern about potentially “catastrophic” wildfire liabilities, Bloomberg Intelligence analyst Nikki Hsu said in a note to clients.