Xcel Energy admits faulty pole may be to blame for deadly Smokehouse Creek wildfire that torched 1million acres in Texas and killed 7,000 cattle

Xcel Energy has admitted its equipment was likely responsible for starting the worst fire in Texas history that burned more than a million acres of land and killed 7,000 cattle. 

The Smokehouse Creek fire killed two residents, destroyed villages and displaced hundreds after igniting last Monday. 

The company is currently being sued by a local homeowner who alleged that a splintered power pole owned by the company fell and started the catastrophic blaze. 

'Based on currently available information, Xcel Energy acknowledges that its facilities appear to have been involved in an ignition of the Smokehouse Creek fire,' the company said in a statement on Thursday.

Although the energy company disputes claims it acted negligently in maintaining and operating its infrastructure it has told those who have lost property, including cattle, in the devastation to submit claims to the company through a dedicated process. 

Xcel Energy has admitted its equipment was likely responsible for starting the worst fire in Texas history

The Smokehouse Creek fire has ravaged more than a million acres of land, killed two residents and burned dozens of cattle to death since igniting last Monday

Hundreds of residents have been displaced and no official cause for the fire has yet been given

Texas Agriculture Commissioner Sid Miller told CBS the 7,000  cattle that have died in the fire may not represent the final death toll, which could end up being around 10,000. 

The 7,000 also does not include cattle that will have to be euthanized due to their injuries, Miller said on Thursday. 

'Their hooves are burned off, their udders are burnt beyond – they can't nurse their babies,' he explained.  

Adding: 'We'll actually end up having to put a lot of cattle down just because they won't be able to make it, even though they survived.'

Xcel's shares have dropped 13 percent since the lawsuit became public last week, losing more than $5 billion in market value. 

'Xcel Energy, through our Southwestern Public Service Company (SPS) subsidiary, has operated in the Texas Panhandle for more than 100 years' CEO Bob Frenzel said on Thursday. 

'The people in this region are our friends, neighbors and relatives. We are deeply saddened by the losses incurred in this community, and we are committed to supporting its renewal and recovery.' 

The Minnesota-based utility serves almost four million customers across eight states and is worth approximately $28 billion. 

Melanie McQuiddy, a resident of the fire-ravaged town of Canadian, is suing Xcel Energy for recovery of damages to real property, arguing that the a pole owned by the company was not properly maintained which resulted in it falling and igniting the fire. 

Canadian local Melanie McQuiddy (right) is suing Xcel Energy for recovery of damages to real property

The fire consumed more than a million acres of land, leaving a trail of devastation 

Hundreds of properties were destroyed in the Smokehouse Creek fire 

In Fritch, where up to 50 homes were destroyed, photos show a calf killed and burned trees by the Smokehouse Creek Fire covered in snow on Thursday

Cindy Owen, (right) from Amarillo died when she tried to escape from her truck after it was surrounded by flames outside Pampa on Thursday.

Joyce Blankenship, 83, was also found dead as a result of the fires last week

McQuiddy sued Southwestern Public Service Company, a subsidiary of Xcel Energy, and Osmose Utilities Services, a Georgia-based contractor that inspects wood utility poles, late on Friday. 

The firms 'failed to properly inspect, maintain, and replace,' the pole which cracked and snapped off at its base, the lawsuit alleges. 

'As a result of the utility, powered utility lines hit the ground, igniting a fire, which spread quickly into an uncontrollable conflagration,' it states. 

Osmose Utilities Services examined poles for Southwestern Public Service and was irresponsible in its inspection and reporting of the 'rotten pole that caused the fire' according to the lawsuit.  

Texas A&M Forest Service is officially investigating the fire but a cause has not yet been determined. 

'Xcel will pay for every dollar that its wildfire has caused,' attorney Mikal Watts representing McQuiddy told News 4.

Xcel is also set to face another lawsuit from multimillionaire trader Salem Abraham for damages to his  3,500 acre ranch. 

Around 95 percent of the fences and pastures on Abraham's land — which stretches along five miles of the Canadian River — were burned in the fire, along with wildlife and thousands of trees. 

Abraham told the Texas Tribune he intends to sue Xcel and Osmose Utility Services later this month over the Xcel Energy pole for damages.

'I'm sick and tired of it,' Abraham said. 'This is not my first or second or third or fourth or fifth fire rodeo, and it's not my first one with these utilities [companies].' 

Two residents have died as a result of the fire so far. 

Cindy Owen from Amarillo died when she tried to escape from her truck after it was surrounded by flames outside Pampa on Thursday. 

Joyce Blankenship, 83, was also announced dead last week.

Her body was found in Stinnett, Hutchinson County Public Engagement Coordinator Deidra Thomas said in a statement on Wednesday.