Investigations into the cause of the fire are ongoing and have not concluded that Edison’s equipment sparked the blaze, Edison International Chief Executive Pedro Pizarro said during the company’s first-quarter earnings call.

But Edison’s probe into the start of the fire has not revealed any other possible sources of ignition, Pizarro added.

“Absent additional evidence” and “in light of pending litigation, it is probable that Edison International and Southern California Edison will incur material losses in connection with the Eaton fire,” Pizarro said.

Edison has previously acknowledged that it could be responsible for the blaze and said earlier this month that a dormant power line might have been the cause.

But Tuesday’s comments are the clearest signal to date that the company is likely to sustain substantial losses from the devastating wildfire.

“It’s still very early days here and the liability is simply not estimable today,” Pizarro said. “I’m not sure when it may become estimable.”

The Eaton fire killed 18 people and destroyed thousands of homes and other structures. Early estimates put the cost of damages at $10 billion, but experts said that number would grow. The total estimated economic loss caused by the January wildfires has surpassed $250 billion.

Southern California Edison, based in Rosemead, is an investor-owned public utility that provides electricity to about 15 million people across a 50,000-square-mile area in Southern California. Along with the utility, which is one of the largest in the country, Edison International also owns an energy advisory company, Trio.

In all, Edison International employs more than 14,000 people and had a valuation of around $30 billion before January’s wildfires. The company’s valuation closed Tuesday at $22.6 billion.

If Edison has to cover the damages caused by the Eaton fire, the utility will be partially protected by an emergency fund that state lawmakers created in 2019 in the wake of earlier wildfires. The fund is designed to protect utility companies from bankruptcy in the event the utility is found responsible for a wildfire and has to make a large payout.

Video of flames at the base of an Edison transmission tower in Eaton Canyon the night the fire began raised suspicions that the utility’s equipment was at fault.

“Unlike when we were dealing with TKM and Woolsey, we have the wildfire fund that we will be accessing,” Edison International Chief Financial Officer Maria Rigatti said on Tuesday, referring to previous wildfires tied to Edison’s equipment.

The emergency fund is supposed to cover up to $21 billion in damages on behalf of a utility company, but had only amassed $14.7 billion as of December 2024.

Under state law, a utility does not have to reimburse the wildfire fund after using it to cover damages if a review finds it acted prudently to prevent a fire, such as by shutting down power to transmission lines amid high winds. But if Edison is found to have been imprudent, it will have to pay back $4 billion to the fund.

“Based on everything we know today and the information that we’ve reviewed, we believe that Southern California Edison will make a good-faith showing that it was prudent,” Rigatti said.

On Tuesday, Edison International reported first-quarter net income of $1.4 billion and earnings per share of $1.37, up from $1.13 a year ago.

Shares closed at $58.73 on Tuesday, about half a percent higher and down 26% so far this year.

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