EIX · 10-Q · 2026Q3 · Full report

Wildfire Claims and Recoveries

EDISON INTERNATIONAL · 2026-10-29 · Importance 41 · Surprise 24 · In source text

SCE's wildfire-related claims, net of recoveries, decreased $1.082 billion in the nine months ended September 30, 2026, primarily because 2025 included $1.341 billion of claim-cost recovery authorized under the TKM Settlement Agreement and $14 million of insurance reimbursements for Other Wildfire Events. The comparison was partly offset by $240 million of wildfire claim costs recorded in 2025 for the Eaton Subrogation Settlement, covered by customer-funded wildfire self-insurance and expected FERC recovery. SCE also recorded $33 million of benefits, mainly from expected recoveries and reimbursements for prior-year Other Wildfire Events costs.

Key facts

• For eligible third-party Eaton Fire damage claims exceeding $1.0 billion, SCE will be reimbursed from the Wildfire Fund's Initial Account, subject to fund administrator approval and the account's claims-paying capacity; the administrator reported at least $21 billion in claims-paying capacity would be available for the fire. source
• SCE exhausted the $1.0 billion of available self-insurance recoveries for Eaton Fire losses by February 11, 2026. source
• Edison International recorded $1,338 million of net wildfire-related earnings ($964 million after tax) in the first nine months of 2025, primarily related to the TKM Settlement Agreement and insurance reimbursements for Other Wildfire Events. source
• As of September 30, 2026, SCE had recorded $1.8 billion in Eaton Fire settlement losses, expected recoveries of $917 million from customer-funded self-insurance, $859 million from the Wildfire Fund, and $70 million through FERC electric rates. source
• SCE's wildfire-related claims expense, net of recoveries, decreased $287 million in the third quarter of 2026, primarily due to $266 million of 2025 Eaton Subrogation Settlement claim costs and $21 million of benefits from expected recoveries for prior-year Other Wildfire Events costs. source
• Through September 30, 2026, the net after-tax charge to earnings recorded for Eaton Fire settlements was $9 million, reflecting the after-tax impact of SCE's required $12.5 million shareholder contribution for customer-funded self-insurance coverage. source
• SCE recorded Wildfire Fund amortization charges of $107 million ($77 million after tax) in 2026 and $108 million ($78 million after tax) in 2025. source
• Edison International recorded $27 million of net wildfire-related earnings ($19 million after tax) for the first nine months of 2026, primarily from expected recoveries and reimbursements for prior-year costs, partly offset by Other Wildfire Events claims and legal expenses. source

Impact estimates