On Tuesday, Pedro Pizarro, President and CEO of Edison International, stated that the company’s equipment might have ignited the massive Eaton fire. The blaze, which began on January 7, burned over 14,000 acres, killed 18 people, and caused extensive property damage. During an earnings call, Pizarro informed investors that while Southern California Edison (SCE) has not confirmed its equipment as the cause, no other ignition sources have been identified.
Edison International, based in Rosemead, California, is likely to face significant financial losses if found liable. The company has a history of passing disaster-related costs to customers, but how it will manage the financial impact of the Eaton fire remains uncertain. According to the Los Angeles Times , Edison has acknowledged the possibility of a dormant power line being the cause of the fire.
Pizarro noted that the liability is not yet estimable, and investigations are ongoing. The company could potentially access an emergency fund established by California lawmakers in 2019, designed to protect utilities from bankruptcy due to wildfire-related damages. However, if Edison is found imprudent, it may have to repay $4 billion to the fund…