Southern California Edison expects ‘muted’ 2026 growth as wildfire costs roll in

Core Insights - Southern California Edison has initiated a Wildfire Recovery Compensation Program to compensate victims of the Eaton Fire, potentially affecting tens of thousands of claimants [1] - The company has recorded approximately $1 billion in liabilities related to the Eaton Fire, including 2,405 claims and 593 offers totaling over $183 million [2][3] Financial Overview - The estimated total potential liability for the Eaton Fire is projected at $13.5 billion, based on an assumption of 2.5 claims per 18,000 properties at $300,000 per claim [9] - Edison International has a 5-year capital spending plan ranging from $38 billion to $41 billion [4] - The company has invested $12 billion in safety and reliability upgrades over the past two years [5] Incident Details - The cause of the Eaton Fire remains undetermined, but there is a prevailing theory that an idle transmission line owned by Southern California Edison may have sparked the blaze [6] - The company has photographic evidence of anomalies in the grounding of the suspect line and has since adopted a policy of grounding idle lines every two miles [6][7] - Approximately 18,000 properties are eligible for payouts under the compensation program, with many properties potentially representing multiple claims [8] Community Support - Edison International has contributed $2 million to the Pasadena Community Foundation to support survivors of the Eaton Fire [9]