Legal And Financial LiabilityA $10 billion potential liability could meaningfully deplete the $21 billion fire fund that protects the California utilities.
Market Reaction And Valuation ConcernsMarket reaction seemingly reflects a worst-case scenario where investigations conclude that EIX started the Eaton fire.
Wildfire Risks And Equipment InvolvementThe Eaton fire ignition point appears to have been in EIX service territory, and while the company had de-energized distribution lines in the area, transmission facilities are present, and a review is being conducted.