The chief executive of Edison’s parent company in Southern California said Tuesday that the company is likely to suffer “material losses” related to the fatal Eaton fire that fired on more than 14,000 acres on Jan. 7.
Edison’s international chief executive Pedro Pizzarro has not concluded that investigations into the cause of the fire continue and that Edison’s equipment caused the flames.
However, investigations into the launch of the Edison fire have not revealed any other possible sources of fire, Pizzaro said.
“There is no additional evidence” and “In light of pending lawsuits, Edison International and Edison in Southern California could suffer significant losses in connection with the Eton Fire,” Pizzaro said.
Edison believes it could be blamed for the flames, and said this month it could be caused by dormant power lines.
However, Tuesday’s comments are the clearest signal to date that the company is likely to maintain a major loss from a catastrophic wildfire.
“It’s still very early here and today’s responsibility is simply not estimated,” Pizzaro said. “I don’t know when that will be estimated.”
Eaton Fire killed 18 people and destroyed thousands of homes and other structures. Early estimates showed the cost of losses to $10 billion, but experts said the number would increase. The total estimated economic loss caused by people has risen
Based in Rosemead, Southern California’s Edison is an investor-owned utility that provides electricity to approximately 15 million people in Southern California’s 50,000 square miles of region. In addition to the nation’s largest utility, Edison International owns the energy advisory company Trio.
Overall, Edison International employs more than 14,000 people and was valued at around $30 billion before the January wildfire. The company’s valuation closed at $22.6 billion on Tuesday.
If Edison has to cover the damage caused by the Eton Fire, the utility will be partially protected by state legislators who created in 2019 in the wake of a previous wildfire. The fund is designed to protect utility companies from bankruptcy if the utility is liable for wildfires and has to make large payments.
Video of the flames at the foot of Edison Transmission Tower in Eaton Canyon at night raised suspicions that utility equipment was breaking down as a fire began to break out. The state’s utility safety regulators raised questions about maintaining the aging transmission line in Edison, Southern California, Times reported. It caused 178 fires in 2024.
“Unlike when we were dealing with TKM and Woolsey, we have a wildfire fund that we can access,” Edison International Chief Financial Officer Maria Rigatti said Tuesday.
The Emergency Fund is supposed to cover up to $21 billion in damages on behalf of utility companies, but as of December 2024 it had accumulated just $14.7 billion.
Under state law, if a review finds that you acted carefully to prevent a fire, such as closing power to a power line in high winds, you don’t need to refund utility bills after using it, and using the Wildfire Fund. However, if Edison turns out to be rude, he will have to pay $4 billion back to the fund.
“Based on everything we know today and the information we review, we believe Edison in Southern California will create goodwill that it is wise,” Rigatti said.
On Tuesday, Edison International reported that its first quarter net income and earnings per share of $1.4 billion increased from $1.13, ahead of $1.37.
The shares closed at $58.73 on Tuesday, with 26% up and down about half this year.
