Did Edison International change its financial guidance in this 8-K?

No new results were reported. The company reaffirmed 2026 Core EPS guidance of $5.90–6.20 and 2027 guidance of $6.25–6.65, and provided 2028 guidance of $6.74–7.14. The 2028 range and 2030 target are new forward-looking disclosures in the presentation.

What is the financial exposure from the Eaton Fire?

The company cannot currently estimate potential losses. SCE believes its equipment was likely associated with the ignition, though causation has not been conclusively determined. Funding sources cited include the Wildfire Fund's initial account (administrator estimates about $21 billion of claim-paying capacity), SCE's $1 billion annual self-insurance layer funded by customers, and securitization authority under SB 254 for amounts above fund capacity. The presentation also notes that claims compensation has paid over $375 million to more than 2,400 claimants so far.

How does the SB 254 legislation affect SCE's balance sheet and cash flows?

SB 254 lets SCE securitize about $6 billion of wildfire mitigation capex (SCE share about $2.9 billion), which supports cash flow and credit metrics. It also creates a new $18 billion Continuation Account funded 50/50 by customers and IOUs, with SCE's share around $145 million per year beginning in 2029. The company expects to recover over $11 billion of historical costs by the end of 2027, which should strengthen its balance sheet.

What is the outlook for SCE's rate base and capital spending?

SCE forecasts a rate base growing from about $50.8 billion in 2026 to about $66.1 billion in 2030, a roughly 7% CAGR, driven by a $38–41 billion capital plan. Key drivers include load growth and electrification, infrastructure replacement, wildfire mitigation, and transmission projects approved by CAISO. Modeling assumptions include an authorized CPUC ROE of 10.03% and an equity ratio of 52%.

What are the main risks investors should monitor from this presentation?

Key risks include the outcome of CPUC prudency determinations for wildfire-related costs, the sufficiency of the Wildfire Fund, the potential for regulatory or legislative changes that limit wildfire mitigation tools such as PSPS, and affordability constraints on rate increases. Credit risk is also relevant: S&P has Negative outlooks on both SCE and EIX, and the company notes that downgrades could follow if California fails to adopt effective wildfire liability legislation. The company's guidance also depends on regulatory approval of its 2029 GRC and cost of capital decisions.

EIX 8-K: Regulation FD — Jul 31, 2026

01—Abstract

Summary

Summary of the 8-K filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.

Edison International (EIX) filed an 8-K on July 31, 2026 furnishing a July 30, 2026 business update presentation (Exhibit 99.1) for use in investor meetings and conferences.

The filing itself contains no new financial results; its value lies in reaffirmed guidance and updated multi-year outlook. Management reaffirmed 2026 Core EPS guidance of $5.90^a–6.20 and 2027 Core EPS guidance of $6.25–6.65, and introduced 2028 Core EPS guidance of $6.74–7.14, which implies 5–7% growth from the $5.84 original 2025 midpoint. The company projects roughly 7% SCE rate base CAGR from 2025 to 2030, supported by a $38–41 billion capital plan for 2026–2030, and reiterates no equity issuance in its 2026–2030 financing plan.

The most important wildfire-related items concern the Eaton Fire and California's SB 254 framework. SCE states it believes its equipment was likely associated with the Eaton Fire ignition, but management is currently unable to estimate potential losses. The company points to clear funding sources: the Wildfire Fund's initial account (administrator estimates roughly $21 billion^b of claim-paying capacity), customer-funded self-insurance of the first $1 billion, and securitization authority under SB 254.

Under SB 254, SCE's share of a $6 billion^c securitization of wildfire mitigation capex is about $2.9 billion, and the company expects to recover over $11 billion of historical costs by end-2027. Investors should note that the presentation's own risk factors flag that the CPUC's prudency determinations and fund administrator approvals remain pending, so the ultimate cost allocation for Eaton is not yet resolved. Credit ratings are investment grade but under some pressure: S&P has BBB- Negative outlooks at both SCE and EIX, while Moody's (Baa1/Baa2) and Fitch (BBB) are Stable.

The company targets an EIX FFO-to-debt ratio of 15–17%^d. Dividend growth is ongoing, with 22 consecutive years of increases and a target payout of 45–55% of SCE core earnings. The presentation is a forward-looking management update rather than a material event disclosure, and its projections are subject to regulatory outcomes, wildfire liability developments, and the risk factors listed in the filing.

02—Key points

Key Highlights

Reaffirmed 2026 Core EIX EPS guidance of $5.90–6.20 and 2027 guidance of $6.25–6.65, with 2027 expected at the high end of the 5–7% long-term growth range.
Introduced 2028 Core EPS guidance of $6.74–7.14 (5–7% growth from the $5.84 2025 base) and a 2030 target of $7.45–8.20 (5–7% CAGR from 2026).
SCE rate base projected to grow about 7% CAGR from 2025 to 2030, from roughly $50.8 billion (2026) to $66.1 billion by 2030, supported by a $38–41 billion 2026–2030 capital plan, over 85% of which is in the distribution grid.
Eaton Fire: SCE believes its equipment was likely associated with ignition and cannot yet estimate losses; the company cites Wildfire Fund reimbursement, $1 billion customer-funded self-insurance, and SB 254 securitization as funding sources.
SB 254 provides a 2029+ Continuation Account funded 50/50 by customers and IOUs (SCE share about 47.85%, roughly $145 million per year starting 2029) and authorizes securitization of about $6 billion of wildfire capex (SCE share about $2.9 billion).
Credit: investment grade at SCE and EIX, with S&P at BBB- Negative at both entities while Moody's and Fitch are Stable; SCE recently prepaid a $1.5 billion term loan on July 28, 2026.
No equity issuance is forecast for 2026–2030; the financing plan relies on about $36–38 billion of operating cash flow and $9–12 billion of incremental debt, with dividends of $7–9 billion.

03—Questions

Frequently Asked Questions

Did Edison International change its financial guidance in this 8-K?
No new results were reported. The company reaffirmed 2026 Core EPS guidance of $5.90–6.20 and 2027 guidance of $6.25–6.65, and provided 2028 guidance of $6.74–7.14. The 2028 range and 2030 target are new forward-looking disclosures in the presentation.
What is the financial exposure from the Eaton Fire?
The company cannot currently estimate potential losses. SCE believes its equipment was likely associated with the ignition, though causation has not been conclusively determined. Funding sources cited include the Wildfire Fund's initial account (administrator estimates about $21 billion of claim-paying capacity), SCE's $1 billion annual self-insurance layer funded by customers, and securitization authority under SB 254 for amounts above fund capacity. The presentation also notes that claims compensation has paid over $375 million to more than 2,400 claimants so far.
How does the SB 254 legislation affect SCE's balance sheet and cash flows?
SB 254 lets SCE securitize about $6 billion of wildfire mitigation capex (SCE share about $2.9 billion), which supports cash flow and credit metrics. It also creates a new $18 billion Continuation Account funded 50/50 by customers and IOUs, with SCE's share around $145 million per year beginning in 2029. The company expects to recover over $11 billion of historical costs by the end of 2027, which should strengthen its balance sheet.
What is the outlook for SCE's rate base and capital spending?
SCE forecasts a rate base growing from about $50.8 billion in 2026 to about $66.1 billion in 2030, a roughly 7% CAGR, driven by a $38–41 billion capital plan. Key drivers include load growth and electrification, infrastructure replacement, wildfire mitigation, and transmission projects approved by CAISO. Modeling assumptions include an authorized CPUC ROE of 10.03% and an equity ratio of 52%.
What are the main risks investors should monitor from this presentation?
Key risks include the outcome of CPUC prudency determinations for wildfire-related costs, the sufficiency of the Wildfire Fund, the potential for regulatory or legislative changes that limit wildfire mitigation tools such as PSPS, and affordability constraints on rate increases. Credit risk is also relevant: S&P has Negative outlooks on both SCE and EIX, and the company notes that downgrades could follow if California fails to adopt effective wildfire liability legislation. The company's guidance also depends on regulatory approval of its 2029 GRC and cost of capital decisions.

04—Continue

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