Edison CEO Warns of Credit Downgrades if California Fails to Address Wildfire Costs
Pedro Pizarro, CEO of Edison International (EIX), warned that California's investor-owned utilities could face credit rating downgrades unless state lawmakers pass wildfire reform legislation by the end of August. The lack of a clear framework for managing soaring wildfire costs poses risks to debt financing and customer rates at Southern California Edison (SCE). Pizarro noted that SCE’s current S&P rating is BBB-, just above non-investment grade, leaving little room before potential downgrades. The utility has already committed $1.6 billion in settlements related to the 2025 Eaton Fire alone and faces over 2,000 lawsuits from more than 32,000 plaintiffs. Edison International reported second-quarter income of $534 million, up significantly year-over-year, but ongoing liabilities remain a concern. The company is seeking reimbursement through California’s Wildfire Fund for some costs related to the Eaton Fire and other past wildfires. SCE has also requested additional funds from customers this year to cover wildfire-related expenses. While Pizarro said credit downgrades would not immediately affect SCE's capital plan, which includes a $38B–$41B five-year investment in infrastructure, he emphasized that legislative action is critical for maintaining financial stability.
Topics: California policy credit ratings utilities regulation wildfires