Edison International and PG&E Shares Fall After California Lawmakers Block Newsom Wildfire Liability Plan

Shares of Edison International and PG&E tumbled on August 28 after California lawmakers blocked Governor Gavin Newsom's push to prevent insurers from recovering wildfire losses directly from utilities. The proposal was a central piece of a broader effort to limit utility wildfire liabilities, and its failure effectively takes the larger structural reforms off the table, with the legislative session set to end August 31. The collapse of the legislation is a significant setback for both utilities, which had been pressing Sacramento for a fix before the session closed.

Edison International's CEO Pedro Pizarro had warned on the company's second-quarter earnings call that Southern California Edison's credit standing could weaken without legislative action. Unusual put option volume in EIX was noted by traders during the session, reflecting bearish positioning, and Edison shares underperformed sector peers by the close of trading Friday.