StockNews.AI
EIX
StockNews.AI
194 days

Edison International's Utility – Southern California Edison – Submits Reports on Eaton and Hurst Wildfires to State Regulators

1. SCE investigates potential links between its equipment and wildfires. 2. The Hurst Fire was fully contained, but its cause remains under investigation. 3. SCE is committed to community support and wildfire prevention actions. 4. Edison International allocated $1 million for wildfire relief efforts.

8m saved
Insight
Article

FAQ

Why Bearish?

Ongoing investigations can lead to potential liabilities for EIX, reminiscent of past fire-related litigations impacting stock price.

How important is it?

The article highlights significant ongoing investigations that could influence EIX’s financial standing.

Why Long Term?

Legal outcomes from fire investigations might affect EIX over the coming months.

Related Companies

EIXSCE
ROSEMEAD, Calif.--(BUSINESS WIRE)--Edison International’s subsidiary, Southern California Edison, today submitted two letters to the California Public Utilities Commission providing updates on its ongoing analysis into the origin of the Eaton and Hurst wildfires that began on Jan. 7, 2025, in accordance with state reporting requirements. These reports follow an interim update on the Eaton Fire submitted to the CPUC on Jan. 27, 2025. Eaton Fire In its Feb. 6 report, SCE notes that the cause of the fire’s ignition has not been determined, and its investigation is ongoing. Information and data have come to light, such as videos from external parties of the fire’s early stages, suggesting a possible link to SCE’s equipment, which the company takes seriously. SCE has not identified typical or obvious indications that would support this association, such as broken conductors, fresh arc marks in the preliminary origin area, or evidence of faults on the energized lines running through that area. “While we do not yet know what caused the Eaton wildfire, SCE is exploring every possibility in its investigation, including the possibility that SCE’s equipment was involved,” said Pedro J. Pizarro, president and CEO of SCE’s parent company, Edison International. “We have been fully engaged since the start of the fires in supporting the broader emergency response, containment, recovery and investigation efforts.” The Los Angeles County Fire Department is the lead agency investigating the origin and cause of the Eaton Fire, with support from other agencies, including the California Department of Forestry and Fire Protection. Their investigation remains ongoing. The company is working to examine available information including grid data, maintenance records, photos and videos to determine potential causes of ignition, including whether SCE’s equipment could be related to the cause of the fire. SCE anticipates its full investigation could take several months to complete. The review will include an up-close inspection and testing of equipment in the area of origin as well as material recovered by fire investigators. “Our hearts go out to everyone who has suffered losses. We are working with the local communities SCE serves to rebuild and emerge stronger,” said Pizarro. “We understand the community wants answers, and we remain committed to a thorough and transparent investigation.” As part of the established legal and regulatory process, SCE continues to preserve critical electronic and physical evidence and plans to lower its power lines in proximity to the preliminary origin area in Eaton Canyon for further visual inspection. SCE has three transmission towers that carry transmission lines in Eaton Canyon - four active and one inactive. These lines are currently deenergized. Hurst Fire In its report for the Hurst Fire, SCE states that the Los Angeles Fire Department is investigating the fire and has suggested SCE’s equipment caused the Hurst Fire. The fire burned approximately 799 acres and was fully contained on Jan. 16, 2025. SCE believes its equipment may be associated with the ignition of the Hurst Fire. The cause of the fire remains under investigation, and SCE continues to cooperate with authorities. SCE’s full submissions to the CPUC can be found here (Eaton) and here (Hurst). SCE’s Ongoing Community Support “Edison International and SCE have been part of this community for almost 140 years,” said Pizarro. “As we work to rebuild, SCE’s ongoing investments in wildfire prevention and mitigation, including undergrounding and hardening the grid in high-risk areas will continue, and if necessary, be expanded.” In responding to the windstorms and emergencies created by the Eaton and Palisades fires, over 3,500 SCE crew members, contractors and mutual assistance personnel have worked diligently to support the communities affected by these extreme weather events. Through Jan. 31, 2025, SCE teams have: Installed 400,000 feet of power lines (approximately 75 miles); Set 1,265 poles; and Replaced 380 transformers. During the windstorm, SCE opened 24 customer service locations, helping over 10,000 customers who visited in person. SCE has also assisted thousands of customers through its financial contributions to community-based organizations. To support eligible customers in areas declared as in a State of Emergency, SCE has implemented several customer protections such as protection from disconnections, waived fees, and expedited move-in move-out requests. SCE will continue to provide timely updates to customers as restoration and recovery efforts continue. As announced Jan. 12, Edison International committed to a financial contribution of $1 million to community-based organizations to support relief efforts and assist those affected by the wildfires. The contribution, funded through its foundations and direct giving, will begin with $350,000, including $150,000 to the American Red Cross; up to $100,000 to match employee contributions to three local nonprofits – Los Angeles Regional Food Bank, Pasadena Humane and YMCA of Metropolitan Los Angeles; and $100,000 to America’s Charities to assist employees impacted by the wildfires. For more information, watch this video with Pedro J. Pizarro here. About Edison International Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, focused on providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Trio (formerly Edison Energy), a portfolio of nonregulated competitive businesses providing integrated sustainability and energy advisory services to large commercial, industrial and institutional organizations in North America and Europe.

Related News