Edison stock plunges as fire liability bill dies in Sacramento Play

The California legislature adjourned for the year Tuesday without voting on a controversial bill aimed at changing how the state responds to big fires caused by Southern California Edison and other big utilities.

The per-share price of the parent company for SCE, Edison International, went down another 6% Tuesday. That's when a Wall Street analyst tracking the California power utility made a deep cut to his price target. JPMorgan Chase has slashed the value of Edison International stock to $61 per share, well down from its previous $82. But in early morning trading Wednesday, Edison is still down in an abyss — the stock price is just $55.

Why does this matter to Malibu? The massive drop in Edison International valuation means the company will have to pay more — a lot more — to borrow money. And it needs to borrow money to pay for underground power lines and to otherwise invest in its electric system. Electric rates are probably going to go up, way up.

Pacific Gas and Electric, the other major California utility, announced Tuesday that they're going to defer billions of dollars in planned work because of the same issue. No comment yet from Edison International.