Edison International CEO Pedro Pizarro warned Wednesday that customers face hundreds of millions of dollars in additional costs. The warning follows the California legislature's failure to pass a bill limiting utility liability for wildfire claims.
Pizarro stated the utility risks a credit rating downgrade to junk status without legislative action. A downgrade would increase borrowing costs that the company would pass on to customers.
Investigators recently linked Southern California Edison equipment to last year's deadly Eaton blaze. Fitch Ratings has already revised Edison International's outlook to negative due to the stalled reform.
Competitor PG&E recently announced a $2 billion cut in capital spending following the legislative impasse. Edison is not currently considering similar spending cuts but is calling for a special legislative session to resolve the liability issue.