Rosemead’s is Edison International took a $1.8 billion charge during the fourth quarter of last year to set aside funds to handle existing and expected wildfire and mudslide damage claims, the company announced in its earnings filing Feb. 28.
Multiple investigations are underway to determine the extent of wildfire liability for the company’s Southern California Edison utility subsidiary. SCE could be blamed in whole or in part for the Thomas Fire, which swept across parts of Ventura and Santa Barbara counties in December 2017 and subsequent mudslides in the Montecito area, as well as for November’s Woolsey Fire in western Los Angeles County.
According to Bloomberg, Edison faces more than $4 billion in potential damage claims from the Thomas Fire and Montecito mudslides. Hundreds of claims have been filed. Potential damage claims from the Woolsey Fire are also expected to be in the billions of dollars, given the tally of 1,500 destroyed structures.
The $1.8 billion charge led to a reported net loss for Edison in the fourth quarter of $1.4 billion, or $4.39 per share, compared to a net loss of $545 million, or $1.67 per share, for the fourth quarter of 2017.
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