California Utility Stocks Drop After Wildfire Liability Legislation Agreement
California utility stocks fell sharply following an agreement between Governor Gavin Newsom and state legislators on a bill that limits the liability of insurers related to wildfire damages. Edison International (EIX) dropped by 10%, while PG&E Corporation (PCG) plummeted by 15%. Both were among the worst-performing names in the S&P 500. The legislation is expected to reduce financial exposure for utility companies, but investors reacted negatively due to concerns over potential long-term implications and uncertainty around future liabilities. The market response highlights investor sensitivity to regulatory changes affecting liability structures.
