Investing.com — Edison International shares are down 2.5% in premarket trading Friday, adding to the 10% drop from the previous session.
The stock’s decline comes after its subsidiary Southern California Edison, implemented a power shutdown affecting thousands of customers due to ongoing wildfires in the region.
The wildfires, which have engulfed regions such as Pacific Palisades, Eaton (NYSE:ETN), and Hurst, are expected to be among the costliest in history, according to RBC Capital.
The bank noted that the fires have already burned approximately 33,700 acres and destroyed over 9,000 structures, including high-value homes, businesses, and schools.
“We think this could produce losses of at least $10–20 billion (could be even higher depending on the longevity of the situation,” said RBC.
RBC Capital added: “These wildfires have impacted the LA area, which features high insured dollar value homes.”
On Wednesday, Edison said 413,639 SCE customers were without power. It was reported that the company said, as of Thursday morning, that 327,654 customers were without power.
RBC Capital highlighted that many insurers have already reduced their exposure in California due to the recurring wildfire risks, shifting many policies to the state’s FAIR plan, which serves as an insurer of last resort.