Why Shares of Edison International Are Falling Today
Shares of Edison International (NYSE: EIX) traded down more than 8.5% on Friday as investors monitor the wildfires raging in California and worry about what the damage might mean for the state's utilities. To date, Edison has fared much better than bankrupt PG&E, which was blamed for last year's devastating Camp fire, but investors are clearly wondering how long Edison's luck can hold out.
While PG&E has received most of the attention, Edison equipment is under scrutiny for potentially causing the Saddleridge fire in Southern California that has burned more than 8,000 acres in the San Fernando Valley.
CEO Pedro Pizarro in a March interview with The Los Angeles Times admitted "at least in part, it's luck" that his utility has so far escaped bankruptcy while PG&E is in court protection. And investors in all California utilities, Edison included, have been watching the PG&E bankruptcy closely to get a feel for what they might expect if other energy providers are forced to follow a similar path.
Source Fool.com
