Earnings Performance: Edison International reported second quarter core earnings per share (EPS) of $0.97, a decline from $1.23 year-over-year. The year-over-year comparison is considered less meaningful as Southern California Edison (SCE) awaits a final decision on its 2025 General Rate Case (GRC). Despite this, the company maintains confidence in achieving its 2025 EPS guidance and a core EPS compound annual growth rate (CAGR) of 5% to 7% through 2028.

Eaton Fire Investigation: Investigations into the Eaton Fire are ongoing, with no new disclosures on ignition or estimated costs. SCE believes its equipment could be linked to the ignition but is prepared to demonstrate the reasonableness of their wildfire mitigation strategies. There are numerous lawsuits against SCE, and a wildfire recovery compensation program is slated to launch this fall to aid affected communities.

Legislative Landscape and Wildfire Mitigation: SCE is optimistic about legislative discussions aimed at enhancing California's AB 1054 wildfire regulatory framework, which could result in stronger support for investor-owned utilities in future sessions. However, proposed affordability bills raise concerns, particularly about securitization provisions, which could ultimately lead to higher customer costs due to deteriorating credit quality.