ROSEMEAD, CA – Edison International (NYSE:EIX)'s subsidiary, Southern California Edison (SCE), announced today that it has filed an application with the California Public Utilities Commission (CPUC) to recover $5.4 billion in losses from the Woolsey Fire. The sum includes approximately $4.4 billion in uninsured claims paid to date and $1.0 billion in associated costs such as legal and financing expenses, as of August 31, 2024.
The company is also seeking to recover around $84 million in restoration costs associated with the fire. SCE's application outlines a request for the CPUC to deliver a proposed decision on the matter by February 2026.
This financial move comes as SCE aims to address the significant financial impact of the Woolsey Fire, which has led to substantial uninsured claims and other related costs. The costs and claims mentioned are deemed prudently incurred by the company, which indicates that they are considered necessary and reasonable in the context of the incident.
The Woolsey Fire, which SCE is seeking recovery for, was a devastating event that required extensive restoration efforts and incurred substantial legal and financial costs. The decision by the CPUC will be critical for SCE as it navigates the financial ramifications of the fire and seeks to stabilize its financial position following these expenses.
In other recent news, Edison International has experienced a number of significant developments. RBC (TSX:RY) Capital Markets recently raised the company's stock price target from $94.00 to $100.00, maintaining an Outperform rating. This adjustment reflects confidence in Edison International's robust wildfire mitigation strategies and its role in supporting California's transition to clean energy.
Additionally, Southern California Edison, a subsidiary of Edison International, is seeking to recover approximately $1.6 billion from $2.7 billion in losses incurred due to wildfires and mudslides in 2017 and 2018. This proposed settlement is currently pending approval by the California Public Utilities Commission.
In the realm of analyst notes, BofA Securities reinstated coverage on Edison International with a Buy rating, forecasting earnings per share (EPS) for Edison International for the years 2024, 2025, and 2026 at $4.97, $5.63, and $6.09, respectively.
In a move to support California's clean energy transition, Southern California Edison has entered into a power purchase agreement with geothermal provider Fervo. Lastly, Edison International's CEO, Pedro Pizarro, emphasized the need for California to incorporate more firm clean power sources to achieve its ambitious climate goals.
InvestingPro Insights
As Edison International (NYSE:EIX) navigates the financial aftermath of the Woolsey Fire, InvestingPro data provides additional context to the company's current position. Despite the significant financial burden of $5.4 billion in losses that SCE is seeking to recover, EIX has demonstrated resilience in other areas. The company's market capitalization stands at $32.79 billion, reflecting its substantial presence in the utility sector.
InvestingPro Tips highlight that EIX has maintained dividend payments for 21 consecutive years and has raised its dividend for 18 consecutive years. This consistent dividend policy may provide some reassurance to investors concerned about the company's financial stability in light of the fire-related expenses.
The company's revenue for the last twelve months as of Q2 2024 was $16.82 billion, with a gross profit margin of 59.33%. These figures suggest that EIX maintains a strong operational foundation, which could be crucial as it seeks to absorb the costs associated with the Woolsey Fire.
It's worth noting that EIX has seen a strong return over the last three months, with a price total return of 19.37%. This recent performance indicates that the market may be factoring in the company's efforts to address its financial challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into EIX's financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.