Core Thesis - Edison International (EIX) presents a bullish investment opportunity following a significant share price decline due to concerns over potential liabilities from the Eaton Fire, despite a 37% sell-off being viewed as excessive given the company's strong regulated-utility model and financial protections in California [2][6]. Company Overview - Edison International operates primarily through Southern California Edison (SCE), one of the largest regulated electric utilities in the U.S., earning returns through CPUC-approved rate base investments rather than electricity sales [3]. - SCE has a 10.33% authorized return on equity (ROE), one of the highest in the industry, supported by multi-year rate case decisions focused on grid modernization, wildfire mitigation, and clean energy infrastructure [3]. Financial Performance and Outlook - Despite limited customer growth, California's strong commercial economy and increasing power demand support sustained capital deployment, leading to a management outlook of 5-7% EPS growth and long-term dividend expansion [4]. - The company benefits from California's Wildfire Fund, which caps SCE's exposure to wildfire liabilities at $3.9 billion, fully recoverable through the fund, thus mitigating concerns over wildfire liabilities [5]. Investment Opportunity - The stock is considered undervalued with an implied value of $79.11, representing a 43.1% upside from current levels, making it a compelling risk-adjusted investment opportunity as liabilities become clearer and investor confidence returns [6].