Edison International Provides Latest Update on Southern California Wildfires and SCE Power Outages

Rhea-AI Summary

Edison International and Southern California Edison (SCE) are managing widespread power outages and wildfire impacts across Southern California. As of January 12, SCE has restored power to over 500,000 customers (90% of outages), with 62,662 customers still affected. Restoration times may extend from days to weeks due to severe equipment damage and access restrictions.

The company filed two Electric Safety Incident Reports (ESIR) with the California Public Utilities Commission for the Eaton Fire and Hurst Fire. For the Eaton Fire, preliminary analysis showed no electrical anomalies. Regarding the Hurst Fire, a downed powerline was discovered, though its relation to the fire's ignition remains unclear.

Edison International has pledged $1 million in wildfire relief efforts, including $350,000 in immediate support to various organizations. Dangerous weather conditions are expected through January 15, with some customers potentially facing continued Public Safety Power Shutoffs (PSPS).

Positive

• Power restored to over 500,000 customers (90% of outages)
• $1 million pledged for wildfire relief efforts
• No electrical anomalies found in Eaton Fire preliminary analysis

Negative

• 62,662 customers still without power
• Potential weeks-long power restoration delays in some areas
• Possible connection between SCE equipment and Hurst Fire ignition
• Risk of additional power shutoffs through January 15

Insights

Utility Infrastructure Expert

The ongoing wildfire crisis presents substantial operational and financial risks for Edison International. The filing of two Electric Safety Incident Reports (ESIRs) for the Eaton and Hurst fires signals potential liability exposure, particularly concerning the Hurst Fire where preliminary evidence shows equipment involvement. The discovery of a downed powerline coinciding with the fire's start time could lead to significant legal and financial repercussions.

The restoration of power to 500,000 customers represents effective crisis management, but 62,662 customers remaining without power and extended restoration timelines will impact revenue and customer satisfaction metrics. The $1 million commitment to relief efforts, while positive for community relations, is a minor expense compared to potential wildfire-related liabilities. Previous California utility wildfire settlements have reached billions, making this a material risk for investors.

The documented equipment damage and potential connection to fire ignition points could trigger regulatory investigations and impact SCE's cost recovery mechanisms. This situation echoes previous California utility wildfire cases where equipment failure led to substantial shareholder losses and regulatory scrutiny.

Risk Management Analyst

The convergence of multiple risk factors - extreme weather conditions, equipment damage and potential fire liability - creates a complex risk matrix for Edison International. The preservation notices from insurance companies regarding the Eaton Fire suggest early positioning for potential claims, while the timing correlation between the Hurst Fire and the circuit relay event heightens liability exposure.

Critical infrastructure damage requiring weeks for restoration indicates potential long-term financial implications beyond immediate repair costs. The company's proactive Public Safety Power Shutoff (PSPS) program, while mitigating fire risk, may face regulatory scrutiny over extended outage durations. Historical precedents in California utility cases suggest that wildfire liability can significantly impact equity valuations and credit ratings.

ROSEMEAD, Calif.--(BUSINESS WIRE)-- Powerful winds and several dangerous wildfires continue to create life-threatening conditions in parts of Southern California.

Edison International and Southern California Edison (SCE) extend their thoughts to everyone impacted by this devastating event, and offer immense gratitude to firefighters, public safety officials and all the utility workers supporting customers in California.

Since Jan. 7, SCE has restored more than 500,000 customers ‒ more than 90% of the outages – with 62,662 customers currently without power as of 5:30 a.m. on Jan. 12. Severe equipment damage and access restrictions in areas impacted by wildfire may lead to restoration times taking longer than usual, from several days to, in some instances, weeks. Thousands of SCE employees and contractors are working alongside mutual assistance crews 24/7 to restore power.

SCE filed two Electric Safety Incident Reports (ESIR) related to current wildfires, one for the Eaton Fire and another for the Hurst Fire. ESIRs are filed with the California Public Utilities Commission (CPUC) for incidents that meet certain criteria, such as significant media attention or a governmental investigation. These brief reports contain preliminary information and are provided within two to four hours after a triggering event. To comply with CPUC requirements, these reports are often submitted before SCE can determine whether its electric facilities are associated with an ignition.

Eaton Fire

On Jan. 9, SCE filed an ESIR related to the Eaton Fire, as the incident may have met the reporting requirement, such as significant media attention and property damage exceeding $200,000. Additionally, SCE received evidence preservation notices from counsel representing insurance companies in connection with the fire. SCE conducted preliminary analysis of electrical circuit information for the four energized transmission lines in the Eaton Canyon area. That analysis shows no interruptions or operational/electrical anomalies in the 12 hours prior to the fire’s reported start time until more than one hour after the reported start time of the fire. Aside from the preservation notices suggesting SCE’s potential involvement and media attention surrounding the fire, SCE would not have filed an ESIR.

Hurst Fire

On Jan. 10, SCE filed an ESIR related to the Hurst Fire once SCE learned fire agencies are investigating whether SCE equipment was involved in the ignition, which is a triggering event for reporting. SCE noted that the fire was reported at approximately 10:10 p.m. on Jan. 7, and preliminary information reflects the Eagle Rock - Sylmar 220 kV circuit experienced a relay at 10:11 p.m. A downed powerline was discovered at a tower associated with the Eagle Rock - Sylmar 220 kV circuit. SCE does not know whether the damage observed occurred before or after the start of the fire.

Wildfire Relief Efforts

To support communities affected by the wildfires, Edison International announced a financial contribution of $1 million to community-based organizations to support relief efforts and assist those affected by the wildfires. The contribution, funded through the foundation and direct giving, will begin with $350,000, including $150,000 to the American Red Cross; up to $100,000 to match employee contributions to three local nonprofits – Los Angeles Regional Food Bank, Pasadena Humane and YMCA of Metropolitan Los Angeles; and $100,000 to America’s Charities to assist employees impacted by the wildfires.

“We are proud to support nonprofits that provide critical services to our customers and employees, and we are grateful for the contributions from other Southern California companies who have stepped up to support our communities during this difficult time,” said Pedro J. Pizarro, president and CEO of Edison International. “Their collective efforts demonstrate the strength and resilience of our region, and we are honored to stand alongside them in providing aid and support to those in need.”

Power Restoration

“We greatly appreciate the dedicated efforts of SCE’s employees and the mutual assistance colleagues who are working around the clock to support our communities during this challenging time,” said Steven D. Powell, president and CEO of SCE. “Their unwavering commitment and hard work are truly commendable.”

The extreme weather continues to be a rapidly evolving situation. While wind conditions have improved, dangerous weather is expected through Jan. 15 in some areas. Safety remains the company’s top priority for customers, communities and employees. Some customers may be de-energized this weekend and into the coming week, either from a Public Safety Power Shutoff (PSPS), strong winds, wildfires or other conditions. SCE will restore service as quickly as it is safe to do so. Crews patrolling lines that were de-energized through PSPS have found damage indicating PSPS has already been valuable in protecting communities during this windstorm.

About Edison International

Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, focused on providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility delivering electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Trio (formerly Edison Energy), a portfolio of nonregulated competitive businesses providing integrated sustainability and energy advisory services to large commercial, industrial and institutional organizations in North America and Europe.

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Investor Relations: Sam Ramraj, (626) 302-2540

Media Relations: (626) 302-2255

News@sce.com

Source: Edison International

FAQ

How many customers are still without power in SCE's service area as of January 12?

As of 5:30 a.m. on January 12, 62,662 SCE customers were still without power.

What is Edison International's (EIX) financial commitment to wildfire relief efforts?

Edison International has committed $1 million to support wildfire relief efforts, with an initial $350,000 being distributed to various organizations including the American Red Cross.

What did SCE's investigation reveal about the Eaton Fire incident?

SCE's preliminary analysis showed no interruptions or electrical anomalies in the four energized transmission lines in the Eaton Canyon area during the relevant time period.

When will SCE restore power to all affected customers?

Restoration times vary, with some areas expecting delays of several days to weeks due to severe equipment damage and access restrictions in wildfire-affected areas.

What was discovered during SCE's investigation of the Hurst Fire?

SCE discovered a downed powerline at a tower associated with the Eagle Rock - Sylmar 220 kV circuit, though it's unclear if the damage occurred before or after the fire started.