Spencer Pratt and Heidi Montag are suing the city of Los Angeles and the Department of Water and Power, alleging that the agencies' management of the water supply directly caused damage to their home in the Pacific Palisades Fire.

A number of water systems across Los Angeles have been compromised as a result of the wildfires, making water not safe to drink.

Spencer Pratt and Heidi Montag are suing the City of Los Angeles after alleging the fire that destroyed their $2.5million home was unavoidable

The lawsuit faults the Los Angeles Department of Water and Power for delaying repairs to a massive reservoir that services the Pacific Palisades.

The municipal bond market's initial negative reaction to this month's Southern California wildfires has eased, with secondary spreads starting to tighten.

The Los Angeles Department of Water and Power is investigating whether an empty reservoir led to the failure of its water system during the deadly Palisades Fire. Several fire hydrants ran dry during the peak of the firefight on January 7th and 8th.