What the Eaton fire could mean for Edison’s bottom line

Electrical lines and towers in the general area of where the Eaton fire may have been sparked. Still, as damage estimates from the Eaton fire climb and Edison’s market cap tumbles, skittish investors have been left wondering how big an effect the blaze will have on the utility’s bottom line. The state law that created the fund “did a number of things to really support and enhance the financial stability of investor-owned utilities,” said Maria Rigatti, chief financial officer for Edison’s parent company, Edison International. Edison International had a valuation of around $30 billion before last month’s wildfires, but has lost about a third of that value as its share price has fallen more than 35% since the Eaton fire. How the fund protects Edison — if it’s found to be responsible for the Eaton fire — will shape the company’s future and guide investor attitudes towards public utilities.