Edison International

Consumer Watchdog says the utility-funded coalition Wildfire Victims First is using utility-paid spokespeople to push a wildfire bailout in Sacramento. The group says three leaders featured by the coalition represent organizations with significant financial ties to utilities, including $604,757 in combined funding from PG&E, Edison, SDG&E and SoCalGas from 2023 through 2025. IBEW Local 1245 is directly connected to a funder of Wildfire Victims First through a political committee that spent heavily in the 2026 gubernatorial primary, with PG&E contributing $13.575 million and IBEW Local 1245 contributing $150,000. Consumer Watchdog also found that 142 of the 214 organizations in the coalition, or 66%, received a combined $7.3 million from the four utilities over the same period.

A coalition of governmental entities, wildfire survivors, insurance companies, attorneys and consumer groups sent a joint letter to the California legislature vowing to oppose any proposal that would shift billions of dollars in costs away from utility shareholders and onto insurance policyholders, cities, counties, taxpayers, and wildfire victims. The groups expressed concern that an 11th hour proposal backed by Governor Newsom would undermine one of California's most important incentives for utility safety. Senate Energy Committee Chair Ben Allen has written the CEOs of PG&E and Edison to call out the executives for threats made on recent shareholder calls, as reported by the Los Angeles Times. The CEOs threatened that if they didn't get a bailout in the legislature they would engage in tactics to protect shareholders, such as buying back stock with available cash to prevent the money from being used to improve infrastructure. Allen said he is contemplating having the CEOs appear at hearings to explain themselves.

Electrical sparks from an out-of-service transmission tower owned by Southern California Edison caused the 2025 Eaton Fire that killed 19 people and destroyed thousands of homes near Los Angeles, according to a report released Tuesday by the Los Angeles County Fire Department and Cal Fire. The investigation determined that electrical arcing ejected hot metal particles into dry vegetation below the towers, with two quick-succession arcing events sending unknown burning material that ignited the brush in 12 seconds. Southern California Edison, a subsidiary of Edison International, has already taken responsibility and has offered more than 775 million dollars through its Wildfire Recovery Compensation Program, which has received over 4,000 claims. The findings could still expose the utility to billions of dollars in additional liability claims.

Edison International shares dropped 5.4% after CEO Pedro Pizarro warned that California lawmakers may not pass wildfire liability reforms before the legislative session ends on August 31. Pizarro said on the company's earnings call that failure to enact a credit-supportive framework could significantly raise the cost of debt passed to Southern California Edison customers, noting that SCE's BBB- rating leaves no room before falling to non-investment grade. The company faces substantial wildfire liabilities, including about $1.6 billion committed to victims of the 2025 Eaton Fire, and stated in a new 10-Q filing that it is likely its equipment was associated with the fire's ignition. Edison reported better-than-expected second-quarter adjusted earnings, with net income rising to $534 million from $343 million a year earlier, while reaffirming full-year 2026 EPS guidance of $5.90 to $6.20. Barclays downgraded the stock to Equal Weight from Overweight, citing a shift in management tone and the risk that the capital and growth outlook could change after the legislative outcome.

Consumer Watchdog has issued an alert warning California Governor Gavin Newsom against a reported eleventh-hour proposal to limit utility liability for wildfires. The alert exposes a new ad campaign by a group called Wildfire Victims First, which it describes as a front for the state’s three for-profit utilities—PG&E, Southern California Edison, and SDG&E—whose equipment has caused nine of the twenty most damaging fires in California. According to Public Utilities Commission records, 70 percent of the coalition’s members are funded by the utilities to the tune of $6.9 million. The rumored proposal would cap attorney fees and victim payouts, limit insurance recoveries, and shift more fire costs onto survivors and all Californians. Campaign finance records show the three utilities have given approximately $162,000 to Newsom’s campaign committees since he began running for statewide office, more than any other elected official reviewed. A coalition led by the Every Fire Survivor’s Network has urged the governor to put any proposal through the normal legislative process rather than a last-minute gut-and-amend with no public input.

Southern California Edison's Wildfire Recovery Compensation Program tied to the Eaton Fire has attracted more than 11,700 claimants so far, with applications remaining open through November 30, 2026. The voluntary program does not require claimants to waive litigation rights, meaning it runs alongside traditional legal channels and keeps overall liability uncertainty elevated for parent company Edison International. The scale and structure of the program highlight both the social impact of the event and the financial significance of the recovery process, as ongoing claims could pressure profitability and cash flows if ultimate costs are high. Investors are watching how total claims evolve, the mix between Fast Pay and Detailed Review outcomes, and any disclosures on aggregate program costs, as well as regulatory decisions on wildfire cost recovery that will shape long-term earnings and balance sheet impacts.

Morgan Stanley raised its price target on Edison International from $64 to $66 while maintaining an Underweight rating, implying a nearly 13% downside from current levels. The adjustment came as part of the firm's monthly update for North American regulated and diversified utilities, noting the sector fell 5.5% in May against a 5.1% gain for the S&P 500. Separately, Edison declared a quarterly dividend of $0.8775 per share, payable July 31 to shareholders of record July 7, marking 22 consecutive years of payout growth and a 4.64% annual yield.

Southern California Edison has offered nearly $700 million to community members through its Wildfire Recovery Compensation Program following the Eaton Fire. More than 2,000 offers have been extended to over 4,900 claimants, with over 1,700 claimants paid a total of more than $250 million. The program has received more than 3,800 claims representing nearly 11,100 individuals, trusts, and legal entities. Offers are being delivered in an average of 35 days, and 82% of surveyed participants hold a favorable opinion of the program. The voluntary program remains open through November 30, 2026.