8-KRegulation FDOther EventsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Regulation FD Disclosure (Nov 13, 2019)

Filed November 13, 2019For Securities:EIX

Summary

Edison International (EIX) announced in an 8-K filing dated November 13, 2019, that its subsidiary, Southern California Edison (SCE), has reached settlement agreements in principle to resolve litigation related to the Thomas Fire, Koenigstein Fire, and the Montecito Mudslides, as well as the Woolsey Fire. These settlements are with local public entity plaintiffs and represent a significant step towards resolving substantial liabilities stemming from these events. The company will pay an aggregate of $150 million for the Thomas Fire, Koenigstein Fire, and Montecito Mudslides settlements and $210 million for the Woolsey Fire settlement, totaling $360 million. While these amounts are less than the claims made by the plaintiffs, they are also a portion of the liability previously accrued by the company. Edison International and SCE will reassess their overall liability accrual for these events at the end of the fourth quarter of 2019.

Key Highlights

  • 1Edison International and SCE have entered into settlement agreements in principle with local public entity plaintiffs for the Thomas Fire, Koenigstein Fire, Montecito Mudslides, and Woolsey Fire litigation.
  • 2The total settlement amount for these agreements is $360 million, comprising $150 million for the Thomas Fire/Koenigstein Fire/Montecito Mudslides and $210 million for the Woolsey Fire.
  • 3These settlements aim to resolve claims related to damages caused by the specified wildfires and subsequent mudslides.
  • 4The settlement amounts represent a portion of the claims made by the public entity plaintiffs, specifically a little more than one third of the claimed amounts.
  • 5Edison International and SCE have not adjusted their previously accrued liability for these events based on the settlements thus far, but will reassess at the end of Q4 2019.
  • 6Certain claims and indemnity rights are retained by some public entity plaintiffs in the Montecito Mudslides litigation, indicating ongoing potential exposure in that specific aspect.
  • 7The company issued a press release detailing these settlements, furnished as an exhibit to the 8-K filing.

Frequently Asked Questions

The aggregate amount Edison International and SCE will pay under these settlements is $360 million. This amount is for settlements with local public entity plaintiffs.

At this time, Edison International and SCE have not concluded that an adjustment to their overall liability accrual is required. They plan to reassess the liability at the end of the fourth quarter of 2019 based on all available information.

These settlements resolve claims from local public entity plaintiffs. However, in the Montecito Mudslides litigation, certain public entity plaintiffs retain the right to pursue specific indemnity claims against SCE and Edison International, and the company has not released its cross-claims against these plaintiffs. Therefore, not all potential claims are fully resolved for all parties.

The aggregate $360 million settlement amount is a little more than one third of the amounts originally claimed by the local public entity plaintiffs.