As the blazes ravaging Los Angeles County are already estimated to have caused billions in damages, insurance companies operating in the state are asking Edison International's Southern California power utility to preserve evidence related to the Eaton fire, according to a company's filing sent to regulators.
Southern California Edison (SCE), which delivers electricity to 15 million people across Southern, Central, and Coastal California, wrote that it has received evidence preservation notices from attorneys representing insurers in the state, but specified that no fire agency has suggested the company's equipment may be associated with the fire's ignition.
Newsweek contacted Edison International for comment via a form on the company's website on Friday early morning, outside of standard working hours.
Why It Matters
While it might take several days for the full extent of the damages caused by the fires to be assessed, early estimates expect the economic losses to be in the billions. JPMorgan analysts on Thursday estimated the damages to exceed $50 billion, double what they said they expected the day before. AccuWeather, a private weather forecaster, has estimated the total damages and economic losses caused by the fires to be between $135 billion and $150 billion.
While SCE denies any involvement in the fire's ignition and there's no evidence suggesting otherwise, the company would face substantial financial repercussions should it be found in any way responsible.
What to Know
According to its filing to regulators, SCE submitted a report concerning an incident on Tuesday evening, at 6:15 p.m. PT, near Eaton Canyon "out of an abundance of caution because the incident may meet the technical reporting criteria."
The company said its preliminary analysis of the electrical circuit information for the transmission lines going through Eaton Canyon area in the 12 hours before the fire ignited found "no interruptions or electrical or operational anomalies until more than one hour after the reported start time of the fire."
SCE added that, aside from insurers' preservation notices and significant media attention around the Eaton fire, "we do not believe this incident meets the reporting requirements."
The fires, which are considered among the most devastating to hit California, have killed at least 10 people and destroyed 10,000 structures, including thousands of homes. As the Palisades, Eaton, and Kenneth fires continue burning mostly or completely out of control as of the time of this article's publication—only the Palisades is 6 percent contained—losses are expected to continue rising.
What's at Stake for SCE?
The Southern California utility giant has previously been involved in the ignition of wildfires in the state.
In 2019, the company agreed to pay $360 million to settle claims with 23 cities and counties, including Los Angeles and Ventura, affected by several wildfires. These included the Woolsey fire of November 2018, which killed three people and destroyed more than 1,600 buildings. SCE had admitted being "likely" responsible for the start of the Woolsey fire.
In 2024, the company agreed to pay the U.S. $80 million to settle claims on behalf of the U.S. Forest Service to recoup costs and damages linked to the 2017 Thomas fire in the Golden State.
There's been no evidence so far that SCE is in any way involved with the ignition of the Eaton fire.
What People Are Saying
Southern California Edison's report reads: "The Eaton Fire has received significant media attention and has caused property damage exceeding $200,000. SCE received evidence preservation notices from counsel representing insurance companies in connection with the fire, and there are online publications that seemingly suggest SCE equipment may be associated with its cause," the filing reads.
"Therefore, the incident is arguably 'allegedly attributable to utility facilities,' which technically triggers this report. To date, no fire agency has suggested that SCE's electric facilities were involved in the ignition or requested the removal and retention of any SCE equipment."
AccuWeather Chief Meteorologist Jonathan Porter said: "These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history."
President Joe Biden said on Thursday, announcing the federal government will cover 100 percent of the cost of any firefighting needs in the area for the next 180 days: "I told the governor and local officials, spare no expense to do what they need to do to contain these fires."
What's Next
The cause of the Eaton fire and the other blazes still burning through Southern California is still being investigated. Lightning, arson, utility lines, debris burning and fireworks have historically been the most common causes of wildfires in the Golden State.
Investigators have already ruled out lightning as a cause of ignition, as none was reported in the area the day the fires started. No evidence of faults in utility lines or of arson was identified either, according to the latest updates on the investigations as reported by The Associated Press.
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