Edison International

Edison International is an American electric utility holding company whose principal subsidiary, Southern California Edison (SCE), delivers electricity to approximately 15 million people across a 50,000-square-mile service territory spanning Southern, Central, and Coastal California, generating $19.3 billion in operating revenue in fiscal 2025. The company also owns Trio (formerly Edison Energy), a global energy advisory business that is not material to consolidated results, and a captive insurance subsidiary that provides coverage to Edison International and its affiliates.

This is a story about a regulated utility franchise with an unusually attractive growth profile — 7% rate base compound annual growth through 2030, a 5–7% core EPS growth target extended to the end of the decade, and a 22-year streak of annual dividend increases — that the market has repriced as if the franchise itself is in question. The discount traces to a single event: the January 2025 Eaton Fire, which destroyed more than 9,400 structures in Los Angeles County and for which SCE acknowledges its equipment was likely associated with the ignition. The stock reached $88.36 in November 2024; by June 2025 it had fallen below $50. At roughly $69 today, the market is pricing a deeply uncertain liability outcome into a business that, operationally, has never been stronger.

The file turns on one question: whether California's wildfire liability framework — the AB 1054 Wildfire Fund, the SB 254 Continuation Account, and the regulatory compact that has governed investor-owned utilities in the state for more than a century — will absorb an extreme climate-driven event without breaking the equity.