The latest move in Xcel Energy (XEL) stock comes as investors juggle two big developments: a high-profile Texas wildfire lawsuit that raises liability questions, and a $345 million bond tender aimed at tightening the balance sheet.

The lawsuit alleged negligence led to the fire that killed three people and caused over $1 billion in damages.

Texas sues Southwestern Public Service Company over a wildfire that caused $1 billion in damage and three deaths.

Xcel Energy‘s failure to replace decaying utility poles resulted in a massive wildfire last February that caused damages of up to $1 billion in the Texas Panhandle, state Attorney General Ken Paxton (R) said in a new lawsuit.

Texas Attorney General Ken Paxton has sued Xcel Energy for over $1 billion, alleging "blatant negligence" caused the 2024 Smokehouse Creek Fire.

Texas is seeking to recover the state's economic losses, impose civil penalties, and force the utility to adopt corrective safety measures. The complaint also asks the court to bar Southwestern Public Service from passing wildfire-related costs on to customers—a major point of tension in past utility fire cases around the country.

Xcel insists liability concerns are not driving its decision-making. Xcel paid a $640 million settlement related to the Marshall Fire just a few months ago.