Edison Threatens Action Unless Legislators Shift Wildfire Costs Shift to Ratepayers
CA utilities argue that making shareholders absorb more wildfire losses could threaten investor confidence—and want more of that risk shifted to ratepayers. But utility-caused fires are hardly isolated:
- 3,550 utility-caused fire incidents were reported by CA’s three largest utilities from 2015–2020.
- SCE equipment was involved in 135 fire ignitions in 2024—up 57% from the year before.
Meanwhile, CA ratepayers are already paying some of the highest electricity prices in the country. Residential rates average roughly 33 to 35 cents per kilowatt-hour, about 80% higher than the national average of roughly 18 to 19 cents.
Now investigators have concluded that electrical arcing from SCE equipment caused the Eaton Fire. Yet in 2025, Edison International reported $4.46B in net income, while CEO Pedro Pizarro received $16.6M in compensation – a 20% increase from 2024.
The question for lawmakers is straightforward: why should captive ratepayers absorb even more of the cost of utility-caused disasters so that shareholders are protected from the risks of owning utility stock? This is the quintessential example of for-profit utilities demanding that shareholders be put ahead of the public. Protecting the electrical grid is a public necessity. Protecting private shareholders from the financial consequences of utility-caused disasters – and forcing ratepayers to pick up the tab – is not. It is a bailout paid for by Californians who are already paying some of the highest electricity rates in the nation.
LA Times | LA Times