The probe into the deadly Southern California Eaton fire is likely to take a year or more as authorities examine Edison International’s utility equipment as the possible cause, according to the company’s chief executive officer.
Edison, meanwhile, is conducting its own investigation and has reviewed some “circumstantial information” indicating its power lines may have played a role in the blaze that destroyed much of the town of Altadena in January, CEO Pedro Pizarro said Wednesday during an interview on Bloomberg Television.
Related: Southern California Edison Lays Out $925M Plan to Rebuild After LA Wildfires
The Eaton Fire was among the most deadly blazes in California history, killing 18 people. During a call with analysts Tuesday, Pizarro said the company’s equipment “could” be linked to the blaze. The company, he said, will probably incur losses from it. Edison shares fell 9% Wednesday.
Edison plans to begin settlement talks with victims who have sued the utility if the company concludes its equipment started the fire, Pizarro said.
Related: Bill to Address California Wildfire And Insurance Crises Moving Through Legislature
The company would pay for the first $1 billion for any settlement with its own insurance, while the rest would come from the state of California’s $21 billion wildfire fund, Pizarro said.
“If we end up doing that, we then get immediate reimbursement from the fund,” he said. “We would not expect any impact on our balance sheet and credit metrics as we do that.”
Top photo: Private contractors remove debris from a home destroyed by the Eaton Fire in Altadena, California. Photographer: Kyle Grillot/Bloomberg.
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