$EIX

California scrapped a wildfire liability overhaul, leaving utility credit ratings at risk. PG&E and Southern California Edison bonds and stocks were affected, with S&P warning of potential downgrades. The original proposal included a liability cap and was seen as credit supportive, but the revised bill was deemed insufficient. The issue will be left to the next governor, with Moody's warning of higher electricity rates and economic competitiveness challenges.

US stocks closed higher as bond yields stabilized. The Fed's Beige Book reported modest economic growth. Q2 earnings for the S&P 500 are tracking at 32% growth, driven by AI spending. Nvidia, Dell, and airlines rose, while Palo Alto Networks and MongoDB fell. Crude oil prices climbed due to geopolitical tensions. Overseas markets closed lower.

California Governor Gavin Newsom dropped most of his plan to shift wildfire liability costs to insurers and local governments after protests. A revised 96-page bill limits attorney fees, restricts hedge funds from profiting on claims, and creates a faster payment program for victims. The bill affects Edison, PG&E, and San Diego Gas & Electric, which have caused major wildfires. Newsom urged further reforms to stabilize electricity rates and protect fire victims.

Edison International (EIX) shares dropped 6.14% on Wednesday after JPMorgan analyst Aidan Kelly cut his price target to $61 from $82, citing regulatory setbacks. The California legislature did not vote on the Wildfire Liability Bill, leaving Edison's subsidiary, Southern California Edison, exposed to lawsuits over the Eaton fire. Kelly maintained a neutral rating.

A California bill (SB 492) to expedite payments for wildfire victims and hold utilities liable for fire-related damages was withdrawn before a final vote. The bill faced opposition from utility companies, including PG&E and Southern California Edison, which warned of potential bankruptcy. Assembly Speaker Robert Rivas decided not to vote on the bill, causing PG&E's stock to rise 7%. Gov. Newsom suggested future wildfire legislation may be considered.

California Gov. Gavin Newsom failed to secure a deal with the Legislature to reduce utility wildfire liability payments before his term ends. The Assembly rejected a compromise bill, citing inadequate measures. Newsom acknowledged the failure and urged lawmakers to address the issue next year. The state's major utilities saw significant stock declines amid the uncertainty.

California lawmakers adjourned without passing a wildfire bill, which utility companies and Gov. Newsom deemed insufficient. PG&E (PCG) and Edison International (EIX) shares rose 6% and 8.9% respectively, rebounding from Monday's declines. The bill aimed to address wildfire costs and liability but lacked key provisions sought by utilities and insurers.

California lawmakers withdrew Senate Bill 492, which addressed wildfire liability for utilities like San Diego Gas & Electric, Pacific Gas & Electric, and Southern California Edison. The bill failed to gain support, leading to a drop in stock prices for Edison International and PG&E. The issue remains unresolved, with potential impacts on utility rates and insurance costs.

California utility stocks rebounded Tuesday after a wildfire liability bill was postponed. Edison International (EIX) rose 8.9% in late trade, recovering from earlier losses.

California's wildfire liability plan, SB 492, failed to pass in the Assembly. Edison International and PG&E opposed the bill, citing potential higher rates and lawsuits. Their shares rebounded after the bill's defeat, with Edison gaining 7.3%. The companies had lost over $20 billion in value earlier. The bill's failure was attributed to the utilities' unwillingness to compromise.