S&P Analysts Evaluate Financial Resilience of California Utilities Amid Wildfire Risk

S&P Global Ratings analysts evaluated the financial resilience of investor-owned utilities, insurers, and public balance sheets in California due to recurring wildfire crises. The rating agency noted that a legislative backstop in the state is crucial for major investor-owned utilities. During a webinar, S&P highlighted that the Wildfire Fund, established in 2019, had $18 billion available, with a new infusion adding another $18 billion to cover past use and future liabilities.

The evaluation focused on how measures like 2025's Senate Bill 254 secure necessary liquidity. S&P currently assumes a net present value of $11 billion for the fund. The agency estimates that payments of $15 billion may be required to cover Edison International's potential liabilities.