Edison International is pushing for wildfire reforms in California as regulatory uncertainty weighs on the utility sector, even as the company sticks to its long-term earnings growth outlook.
- According to a CNBC interview, Pizarro said Edison and Southern California Edison are already at the lowest investment-grade credit ratings, making borrowing costs a key concern.
- Edison reiterated its target for 5% to 7% annual EPS growth through 2030.
- Earlier this year, the company reaffirmed its 2026 EPS guidance of $5.90 to $6.20.
Edison International (EIX) CEO Pedro Pizarro warned that California’s failure to establish a new framework for wildfire liabilities could increase financing costs for utilities and ultimately leave customers paying more than ‘hundreds of millions of dollars.’
Speaking to CNBC on Monday, Pizarro said that while California has made progress on wildfire protection, it still needs a broader solution covering utilities, insurance and fire prevention.
Pizarro said Edison International and its unit, Southern California Edison, are already at the “lowest possible investment grade credit ratings,” underscoring the importance of resolving the issue.
“This is not just a shareholder issue. This is a customer issue. This could mean hundreds of millions of dollars, or more, in cost exposure for customers if the framework isn’t addressed,” Pizarro said.
EIX shares were up 0.5% at the time of writing.
SB 492 Fails To Address Utilities’ Concerns
California lawmakers spent weeks negotiating Senate Bill 492 (SB 492) as part of a broader effort to reform how wildfire victims are compensated and how wildfire-related financial risks are managed.
Governor Gavin Newsom initially pushed for broader reforms to reduce utilities’ exposure to certain wildfire claims. However, the final version of SB 492 was narrower and did not substantially reduce utilities’ liabilities.
Edison said the amended SB 492 “does not deliver” comprehensive wildfire reform and failed to provide a stable financing framework. The bill ultimately failed to pass the Assembly.
Edison Reiterates EPS Growth
Edison reported second-quarter earnings of $1.54 per share, beating Wall Street estimates of $1.21 per share, according to Koyfin data. However, revenue of $4.36 billion missed estimates for the second straight quarter.
Despite the uncertainty, Pizarro said Edison remains committed to its 5% to 7% annual EPS growth target through 2030. The company reaffirmed its 2026 EPS guidance of $5.90 to $6.20.
“When you look at the fundamentals for a company, we are in the middle of an area that continues to enjoy a lot of growth. We’ve recommitted ourselves to our 5 to 7% EPS annual growth rate through 2030.”
Retail sentiment surrounding EIX on Stocktwits remained ‘bearish’ over the past 24 hours.
EIX shares have declined nearly 9% so far this year.
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