EIX · 10-Q · 2026Q3 · Full report

Eaton Fire Legal Exposure

EDISON INTERNATIONAL · 2026-10-29 · Importance 47 · Surprise 60

In August 2026, the Los Angeles County Fire Department and CAL FIRE reported that an electrical arcing event on a de-energized idle SCE transmission facility caused the Eaton Fire ignition; SCE said its review was ongoing but that, absent additional evidence, its equipment likely was associated with the ignition. Multiple lawsuits are pending, bellwether trials are set for January, May, and September 2027, and the SED and Los Angeles District Attorney’s Office are conducting investigations; SCE could face nonrecoverable fines, penalties, or restitution. By September 30, 2026, SCE had recorded $1.8 billion of settlement losses, with expected recoveries of $917 million from customer-funded self-insurance, $859 million from the Wildfire Fund, and $70 million through FERC rates; the recorded net after-tax charge was $9 million. The companies said additional material losses were probable but could not reasonably estimate a loss range; SCE had exhausted $1.0 billion of available self-insurance recoveries and expected eligible excess losses to be reimbursed from the Wildfire Fund, subject to approval and claims-paying capacity.

Key facts

• Bellwether jury trials in Eaton Fire litigation were set for January, May, and September 2027; SCE requested that the January 2027 trial be continued to June 2027. source
• SCE's Wildfire Recovery Compensation Program launched in October 2025 and announced an application deadline of November 2026. source
• SCE will file a CPUC application to review its Eaton Fire costs after resolving all or, if authorized by the CPUC, substantially all third-party damage claims and cross-claims, or upon earlier request of the fund administrator. source
• In January 2026, SCE filed a cross-complaint against certain public and private entities whose actions or inaction may have caused, contributed to, or exacerbated the Eaton Fire losses. source
• In August 2026, the LACoFD and CAL FIRE reports concluded that the Eaton Fire ignition resulted from an electrical arcing event on a de-energized idle SCE transmission facility, ejecting hot metal particles that ignited dry vegetation. source
• Edison International and SCE consider it probable they will incur additional material losses in connection with the Eaton Fire, but cannot reasonably estimate a range of those losses. source
• SCE stated that absent additional evidence, it is likely its equipment was associated with the Eaton Fire ignition. source
• SCE could face material fines, penalties, or restitution if found to have failed to comply with applicable laws and regulations in connection with the Eaton Fire; any such fines and penalties would not be recoverable from insurance, the Wildfire Fund, or electric rates. source