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Texas Attorney General Sues Xcel Energy Inc. (XEL) unit over Smokehouse Creek Wildfire

Xcel Energy Inc. (NASDAQ:XEL)  is among 10 Best Performing Electrical Infrastructure Stocks in 2025. 

On December 16, 2025, Reuters reported that Texas Attorney General Ken Paxton filed a lawsuit against Southwestern Public Service Company, a division of Xcel Energy Inc. (NASDAQ:XEL), claiming it was responsible for the 2024 Smokehouse Creek wildfire. The fire was the largest ever recorded wildfire in Texas history, burning to death three individuals and causing more than $1 billion in damage. Paxton’s office claims that the lawsuit aims to recover monetary damages, such as lost wildlife value and property damage. It also requests a court order mandating corrective actions to stop similar instances in the future, as well as civil fines for breaking Texas law.

Following the announcement, Xcel Energy Inc. (NASDAQ:XEL)’s shares dropped 4% in afternoon trading. An inquiry against multiple utility companies linked to the Smokehouse Creek and Windy Deuce fires was started earlier in 2025 by Paxton’s office. As per Paxton, the company failed to uphold its duty of care to the locals and customers in its service area.

Xcel Energy Inc. (NASDAQ:XEL) handles utilities in eight states, serving 3.8 million electric and 2.2 million natural gas users.

While we acknowledge the risk and potential of XEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XEL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025.

Disclosure. None

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 140 Metas
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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