Eaton International Stock Edges Lower After New Data Reportedly Links It To Deadly Eaton Blaze – Retail Sentiment Remains Muted

The development raises concerns that the utility did not take sufficient preventive measures ahead of the deadly wildfire in Eaton, Los Angeles.

Edison International (EIX) shares edged 0.3% lower Wednesday morning following a New York Times report indicating that power lines operated by its subsidiary, Southern California Edison, were under strain 14 hours before the Eaton Fire ignited in Los Angeles.

The report, citing data from Whisker Labs – a Maryland-based technology firm specializing in electrical sensors – suggests that Edison’s transmission network experienced stress well before the region’s most severe winds hit. 

This raises fresh concerns that the utility did not take sufficient preventive measures ahead of the deadly wildfire.

Edison is already under investigation as a possible cause of the Eaton Fire, which resulted in 17 deaths and destroyed more than 9,400 buildings.

According to Whisker Labs, electrical malfunctions, or "faults," occurred on Edison’s transmission lines early in the morning on the day of the fire. 

At that time, sustained wind speeds reached 60 miles per hour (mph), with gusts as high as 79 mph – conditions under which engineers typically consider shutting off power to reduce fire risk, according to the report.

Later that day, two additional faults were detected just minutes before the fire ignited at approximately 6:11 p.m. near Eaton Canyon. 

Fire investigators have pinpointed this location as the fire's origin. Footage from a nearby Arco gas station captured flashes on Edison’s transmission lines that coincided with the faults, data that Los Angeles County has cited in a lawsuit against the utility.

“These two faults did not occur on any line that traverses the canyon,” Edison spokeswoman Kathleen Dunleavy told The New York Times. “They’re not relevant for any line in Eaton Canyon.”

On Stocktwits, retail sentiment around Edison’s stock remained ‘bearish’ amid tepid levels of chatter.

Edison shares have declined more than 27% year-to-date, reflecting ongoing investor concerns over potential legal liabilities and regulatory scrutiny.

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Editor's Note: An earlier version of this story incorrectly stated the company's name as Eaton International instead of Edison International. The mistake has been rectified.<