Edison International's Q1 2025: Navigating Wildfire Liabilities and Regulatory Contradictions

Wildfire liability and AB 1054, regulatory environment and policy, wildfire mitigation and abandoned lines, legislative engagement and wildfire fund security, financial impact of potential material loss are the key contradictions discussed in Edison International's latest 2025Q1 earnings call.



Wildfire Impact and Financial Disclosures:
- Edison International reported a potential material loss in connection with the Eaton Fire, indicating a probable loss, although the total liability is not estimable at present.
- The company's financial disclosure reflects the ongoing investigation into the cause of the fire and the potential link to its equipment.
- This disclosure is based on the absence of other likely ignition sources and the ongoing analysis of evidence.

Capital Expenditure and Rate Case Developments:
- Edison International plans to underground more than 150 circuit miles of distribution power lines in high fire risk areas following the Palisade and Eaton fires.
- The company's 2025 General Rate Case is anticipated to result in a decision in the first half of the year, with the final decision expected within 30 days later.
- These developments are part of Edison's commitment to enhancing reliability and resiliency, driven by regulatory and safety needs.

Regulatory Achievements and Progress:
- SCE received a unanimous CPUC approval for the TKM Settlement Agreement, signaling a constructive regulatory environment.
- The CPUC issued a scoping memo for the Wolfe cost recovery ALJ, aligning with SCE's and intervenors' proposed schedule.
- These milestones reflect the company's proactive approach to regulatory proceedings and its focus on achieving fair and reasonable outcomes.

Legislative Engagement and Wildfire Mitigation:
- Edison International is engaged in discussions with California legislators and the governor's office to enhance the AB 1054 regulatory framework.
- The ongoing legislative efforts aim to strengthen confidence in the state's wildfire framework and policies.
- These efforts reflect the company's commitment to supporting community safety and economic development in California.