Retired power lines or the cause of the Eaton fire, Edison International (EIX.US) experiences a decline before the market opens.

Earlier, foreign media reported that Edison International's (EIX.US) investigation into the January fire in Eaton Canyon, which killed 17 people, was increasingly focusing on whether a retired power line was reactivated, which caused the fire. Edison International's stock price fell 2.6% before the market opened on Monday, and as of the writing, it has fallen 1.37%.

The line was not connected to the grid, but the Southern California Edison Company was concerned that it might have been the cause of the fire. Investigators are trying to determine whether it was electrified by a phenomenon known as "induction," which is the flow of current caused by electromagnetic forces.

"We are indeed highly focused and focused on the induction theory," said Pedro Pizarro, Edison International's CEO, in an interview. "Since the line was not connected to any equipment, induction eventually became the main assumption."

The findings are crucial for Southern California Edison. If its equipment is found to have caused the fire, the company could face potential liability in the tens of billions of dollars. The fire destroyed about 14,000 acres and more than 6,000 homes, making it the second-largest fire in California's history.

It was reported that Southern California Edison could tap a $21 billion fund set up by the state to help utilities cope with the costs of liability related to destructive fires. However, to use the fund without repayment, the company needs to prove to California regulators that its maintenance of the retired line was reasonable or in line with industry standards.