EIX · 8-K · 20261030PR000075
Eaton Fire Legal Exposure
EDISON INTERNATIONAL · 2026-10-30 · Importance 58 · Surprise 42 · No source text
As of September 30, 2026, Edison International and SCE said they could not reasonably estimate the range of potential Eaton Fire losses, although SCE had entered into settlements totaling $1.8 billion. The company recorded expected recoveries of $917 million from self-insurance, $859 million from the Wildfire Fund, and $70 million through FERC rates. SCE had received $207 million from the Wildfire Fund by that date. The presentation identifies SB 254 securitization as a potential funding source for claims above the Wildfire Fund’s capacity, subject to CPUC approval.
Key facts
- Edison International reported $1.8 billion of total settlements entered into related to the Eaton Fire as of September 30, 2026. source
- Edison International recorded expected Eaton Fire recoveries of $917 million from self-insurance, $859 million from the Wildfire Fund, and $70 million from FERC rates. source
- Edison International said that if the CPUC finds SCE’s Eaton Fire costs were not prudently incurred, SCE must return amounts recovered to customers through credits over the remaining duration of the financing instrument. source
- Edison International reported that SCE had received $207 million to date from the Wildfire Fund for Eaton Fire claims as of September 30, 2026. source
- The Wildfire Fund administrator recently estimated that the fund’s claim-paying capacity for the Eaton Fire is at least $21 billion. source
- Edison International said it was unable to reasonably estimate the range of losses that may be incurred in connection with the Eaton Fire. source
- Edison International stated that SCE believes it can make a good-faith showing of prudence in its CPUC application regarding the Eaton Fire. source
- Edison International stated that SCE believes there is no basis for a finding of conscious or willful disregard of the rights and safety of others regarding the Eaton Fire. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | — | Edison International reported $1.8 billion of total settlements entered into related to the Eaton Fire as of September 30, 2026. |
| assets | positive | realized | — | Edison International recorded expected Eaton Fire recoveries of $917 million from self-insurance, $859 million from the Wildfire Fund, and… |
| liability | negative | contingent | — | Edison International said that if the CPUC finds SCE’s Eaton Fire costs were not prudently incurred, SCE must return amounts recovered to… |