PG&E, Edison Sink 19% and 24% After California Blocks Wildfire Liability Cap
Updated
Updated · CNBC · Aug 31
PG&E, Edison Sink 19% and 24% After California Blocks Wildfire Liability Cap
2 articles · Updated · CNBC · Aug 31
Summary
PG&E fell 19% and Edison International dropped 24% in midday trading after California lawmakers blocked a proposal to cap damages tied to utility equipment that ignites wildfires.
The failed measure would have limited how much individuals could seek from utilities, reviving investor concern over potentially large wildfire-related liabilities for the sector.
Mizuho and other Wall Street analysts downgraded the stocks after the vote, arguing investors are better positioned in utilities with fewer wildfire liability risks.
PG&E had already been down 16% in premarket trading earlier Monday, showing the selloff deepened as the market absorbed the legislative setback.