$Edison International (EIX.US)$ shares are off 11%, falling for fourth straight session on Wednesday, as wildfires rage out of control near Los Angeles.
EIX shares hit lowest levels since May and on track for biggest one-day percent drop since the COVID pandemic onset in March 2020.
Powerful winds fueling devastating fires, forcing tens of thousands to evacuate homes and scorching buildings and hillsides
EIX subsidiary, Southern California Edison, has shut power to over 110,000 customers to prevent damage to distribution lines from the wildfire, co said on Wednesday.
Jefferies in note says investors remain nervous "given the lack of containment with a 'sell first, ask questions later' mindset."
But Jefferies, which rates EIX 'buy', adds it "remains comfortable" due to the AB 1054 liability protections that limits the tail risks for utilities.
Meanwhile, shares of California utility PG&E Corp PCG.N off nearly 4% on the session. Co, which in 2020 emerged from a bankruptcy prompted by deadly blazes linked to its equipment, was offered a $15 bln loan last month by the U.S. DOE to bolster the power gride.
Including its move on Wednesday, EIX shares down more than 11% to start 2025, after a 12% gain in 2024.