Edison International shares tumble as California wildfires rage

Hawaiian Electric Industries

08/01/2025 17:19

** Shares of utility firm Edison International  EIX.N  down 8.5%
to $70.81, and falling for fourth straight session on Weds, as
wildfires rage out of control near Los Angeles
    ** EIX shares hit lowest levels since May and on track for
biggest one-day pct drop since COVID pandemic onset in Mar 2020
** Powerful winds fueling devastating fires, forcing tens of
thousands to evacuate homes and scorching buildings and
hillsides
** EIX subsidiary, Southern California Edison, has shut power to
over 110,000 customers to prevent damage to distribution lines
from the wildfire, co said on Weds
    ** Jefferies in note says investors remain nervous "given
the lack of containment with a 'sell first, ask questions later'
mindset"
    ** But Jefferies, which rates EIX 'buy', adds it "remains
comfortable" due to the AB 1054 liability protections that
limits the tail risks for utilities
** Meanwhile, shares of California utility PG&E Corp  PCG.N  off
nearly 4% on the session. Co, which in 2020 emerged from a
bankruptcy prompted by deadly blazes linked to its equipment,
was offered a $15 bln loan last month by the U.S. DOE to bolster
the power grid
    ** Including move on Weds, EIX shares down 11% to start
2025, after 12% gain in 2024

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))