Texas Utility Pole at Center of Wildfire Suit Was Marked Unsafe to Climb

The toppled utility pole that Xcel Energy Inc. has been asked to preserve as potential evidence was inspected and marked with a “do not climb” symbol before the start of the worst wildfire in Texas history, photos seen by Bloomberg News show.

Photos shared by a landowner whose ranch burned in the blaze show a downed pole, wrapped in evidence tape, sporting a silver inspection tag and a red metal caution tag. The law firm that last week sent the letter to Xcel requesting it hold onto the pole said the tags mean it had been flagged as needing attention during an inspection earlier this year.

Representatives of Xcel and its pole-inspection contractor, Osmose Utilities Services, declined to comment. Xcel directed Bloomberg News to its earlier statement, which said it “will continue to work in coordination with first responders and local officials to support the power needs of our communities.”

Officials have yet to identify the cause of the blaze. In fact, it may be months or even years before investigators determine the culprit of the Smokehouse Creek Fire, which has burned more than 1 million acres and resulted in at least two deaths. Xcel owns Southwestern Public Service Co., the power company that operates in the area of the fires.

Xcel fell as much as 3.8% Wednesday before paring the losses. Shares have dropped about 16% since Feb. 28, the day the law firm sent the letter to Xcel. The company disclosed the letter in a filing the next day.

Across the US, utilities have been facing mounting pressure to better protect their equipment amid worsening and more frequent wildfires. Though fires can also be caused by human error, including dropped cigarettes or unattended campfires, or natural causes like lightning strikes, utility equipment has been under the spotlight in several recent investigations across the country.

Famed investor Warren Buffett — a long-time holder of utility companies — said in his annual investor letter that the sector no longer appears to be a safe investment due to losses incurred from more frequent fires. Buffett’s PacifiCorp utility faces multi-billion-dollar wildfire claims.

Xcel already faces legal action in Colorado, where state officials concluded a massive 2021 fire was caused in part by a power line that snapped. Xcel has developed a comprehensive wildfire mitigation program in Colorado including increased inspections, pole repairs in high-risk areas and installation of weather-monitoring devices.

Mikal Watts, the plaintiff’s lawyer in a complaint filed last week against Xcel and Osmose on behalf of a different person whose property was destroyed by the fire, said the pole in question was being excavated on Wednesday. Watts has represented numerous claimants in large wildfire settlements with other power companies, including California’s PG&E Corp., which was driven into bankruptcy in 2019 after its power lines set off some of the worst fires that state has ever seen.

It’s not clear whether Xcel or its contractor were required to repair or replace the pole that the photos show was marked with the “do not climb” tag, or whether any such action needed to occur within a certain window of time.

Salem Abraham, president of Abraham Trading and the landowner who shared the tag photo, said the fire burned a ranch he owns near Canadian, Texas. He’s planning to join a lawsuit suing the companies.

“The ranch will never be the same in my lifetime with the loss of thousands of 50- to 100-year-old trees,” he said.