Edison Threatens Stock Buyback Unless Legislature Shields Utilities Play

Southern California Edison is threatening to use the company's vast amount of accumulated profits to cut and run — to buy back its own stock — unless the State Legislature cuts SCE's financial risk for wildfires that it causes.

Edison International president Pedro Pizarro came as the state Legislature started the last four weeks of its 2026 session. Pizarro told Wall Street analysts on a conference call that he is prepared to make financial changes if the Legislature does not pass a comprehensive bill that cuts the utilities' financial wildfire risk.

Any legislation that passes without a protective framework for utilities, Pizarro said, would "influence how we prioritize and deploy future capital." In other words, spend less on undergrounding and other safety investments.

Edison and the state's other two giant for-profit utility companies are demanding a shield from having to pay for damages caused by future fires that they cause.

This week, L.A. County issued an official report blaming Edison for the $45 billion Altadena fire last year. Edison has told its stockholders that it expects its own insurance, plus a State of California rainy day fund, to pay off the Altadena fire claims.

What does Edison want for the future? They point to a state report that says California could limit payouts for pain and suffering, and cap the fees paid to victims' lawyers, thus limiting victims' ability to sue. The state report also suggested that utilities should no longer reimburse property insurers for damages of fires sparked by electrical equipment. The insurance industry says that would cause fire insurance premiums to skyrocket even further.

Edison reported a profit of $4.5 billion last year on $19.3 billion in sales. That is a profit of 23 percent. Its president, Pedro Pizarro, received $16.6 million in cash, stock and other compensation last year, after his 20 percent raise.