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Edison International's quarterly profits fall as wildfire investigations continue

Edison International announced a decline in its second-quarter profits on Thursday as it struggled to deal with increased operating costs and ongoing investigations related the Los Angeles fires that occurred earlier this year.

The wildfires that ravaged Los Angeles are expected to be one of the most expensive natural disasters in U.S. History. Electric utilities in the area have been under increased scrutiny.

Wildfires are a major cause of power outages, and can be caused by damage to power lines or infrastructure. However, these fires can also start from power lines that have not been properly maintained.

Southern California Edison, a subsidiary of Edison International, faces multiple lawsuits alleging that its electrical equipment caused the Eaton Fire, one of the most significant wildfires to occur in the Los Angeles region.

A report from June stated that SCE's internal wildfire predictions underestimated the size of the Eaton Canyon Fire in Los Angeles in the days before a deadly conflagration occurred in January by a factor ten.

The company attributes the decline in earnings primarily to the higher operating and maintenance costs and the net effect of regulatory decisions made by Southern California Edison (SCE). The decrease was also attributed to higher interest costs at the parent company.

The company plans to also

launch

A wildfire recovery program.

The company confirmed its forecast of adjusted earnings between $5.94 and $6.34 for 2025. Analysts estimate them at $6.06 a share.

Edison CEO Pedro Pizarro stated in a press release that he was confident policymakers would act to restore confidence and strengthen California's wildfire framework in the current legislative session.

The Rosemead-based California company reported a second quarter net income of $343m, or 89c per share, down from $385m, or $1.14 a share, one year ago. Reporting by Khusbu Jennifer in Bengaluru, Editing by Leroy Leo

(source: Reuters)