Why EIX Stock Is Plunging Today

Edison International (EIX) stock is sinking 11% today following reports that wind speeds in the Los Angeles area are expected to accelerate in the coming days. A number of the customers of EIX’s Southern California Edison subsidiary have been affected by the California wildfires.

Southern California Edison is an electric utility.

Accelerating Winds Expected in Southern California

Strong, dry Santa Ana winds are slated to resume in Southern California this week, making it harder to fight the wildfires. The winds had died down in recent days, allowing firefighters to more effectively combat the blazes.

The stepped-up winds are not expected to end until Wednesday at the earliest.

Last week, insurance companies’ lawyers asked Southern California Edison to keep evidence involving one of the wildfires, known as the Eaton Fire. The Eaton Fire started in the  “service area” of Southern California Edison.

But EIX reported that no fire officials have suggested that its equipment was involved in starting the Eaton Fire. Further, EIX said that no unusual events had impacted its equipment until the Eaton Fire had already been burning for an hour.

The Eaton Fire is about 13% contained at this point.

The Price Action of EIX Stock

EIX has fallen 27% in the last five days, and it has given back 33% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.