Edison stock rises after judge declines wildfire liability ruling

Edison International's stock price climbed 3% on Tuesday following a California state judge's decision not to hold the utility, Southern California Edison, liable for a 2025 wildfire in the Los Angeles region without a trial. Superior Court Judge Laura Seigle dismissed a motion by insurance companies seeking to automatically hold the utility responsible for billions in property damages under a state law that holds utilities accountable for fires caused by their equipment.

The tentative ruling was revealed during a hearing on Tuesday, following the Los Angeles County Fire Department's conclusion that the Eaton Fire was triggered by electrical arcing events on an out-of-service tower on a dry hillside. SCE spokesperson Kathleen Dunleavy expressed satisfaction with the decision, stating that it means Edison will not face immediate liability without undergoing a trial, offering relief to the company as it contests claims related to the wildfire damages.