Edison is seeking to limit their liability for Southern California wildfires last year while still facing litigation over 2017 wildfires.

Edison International, the parent company of Southern California Edison, recently argued that it should not be held liable for the 2018 Woolsey Fire. According to the company, it cannot be held liable for private property damage if it cannot pass on some of their liability costs to their customers in the form of increased rates.

The Woolsey fire burned through Malibu and destroyed 1,600 structures during last year’s wildfire season. In total, the fire caused $6 billion in damage including the destruction of celebrity homes owned by Miley Cyrus, Gerard Butler, and others.

Edison CEO Pedro Pizarro allegedly told investors that fire investigators linked the Woolsey Fire with Southern California Edison’s electrical equipment. If this is true, the company could be ordered to pay billions of dollars for property damage.

This could be especially damaging since the California Public Utilities Commission has refused requests for utilities to raise its consumer rates in the face of wildfire costs. Sempra Energy tried to overturn the commission’s policy after it wasn’t allowed to raise rates for 2007 wildfire costs, but the U.S. Supreme Court recently declined to hear the case.

Edison’s recent court filing says that, assuming it cannot increase rates, it cannot be expected to cover Woolsey Fire costs. And like other utilities, they cannot look to the state to cover their costs.

“Edison’s rates are regulated by the [Public Utilities Comission] and it lacks the power to control market price,” the company argued.

Californians whose homes were destroyed in the Woolsey Fire are reportedly unimpressed with this argument. They claim that Edison’s attempt to dodge liability is an “improper challenge to established California law and the California constitution” that has already failed when attempted by other utility companies.

The plaintiffs also note that the California Public Utilities Commission’s decision in Sempra Energy’s case doesn’t necessarily apply to their situation. Each case is different, so the plaintiffs argue that Edison can’t immediately dodge litigation with their preemptive arguments.

“As Edison is well aware, that decision has no application outside that proceeding or those particular fires,” plaintiff lawyers reportedly said.

Edison Southern California Wildfires

The Thomas Fire started in early December 2017 and burned through June 2018. The fire burned through 281,893 acres, consuming over 1,000 structures. Edison was later determined to be liable for the damages associated with the Thomas Fire. The company has since been hit with litigation regarding the damages from people affected by the destructive wildfire.

Southern California Edison says on its website that they “made it our priority to invest in improvements to help prevent wildfires and act quickly when they occur.” PG&E is taking safety measures too. Preventative actions reportedly include updating their power grid, taking preemptive action by removing at-risk vegetation, keeping an eye on wildfire conditions, and initiating proactive power shutoffs.

Both Edison and Pacific Gas & Electric (PG&E) have initiated widespread shutoffs in an attempt to prevent wildfires this season, earning them outrage from Californians left with no power.

This article is not legal advice. It is presented
for informational purposes only.