California Wildfire Bill Dies in Assembly, Easing Utility Liability Fears
EIX is trading near its 52-week low of $52 (12% above the low) on elevated volume (6.9× avg).
Summary
The California wildfire bill that would have capped damages and limited executive compensation for utilities failed to pass the state assembly on Tuesday, removing a major overhang for Edison International and PG&E. The bill's collapse follows Monday's 24% plunge in Edison shares after a compromise version emerged over the weekend. Newsom wanted deeper liability reforms, but lawmakers balked, leaving the current legal framework intact. Shares of both utilities regained some ground on Tuesday as the bill faltered. The unresolved debate leaves uncertainty, but for now the status quo favors utilities over wildfire victims.
At the time of this announcement, EIX was trading at $58.46 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $22.6B. The 52-week trading range was $52.00 to $81.62. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.