Edison International experienced severe selling pressure driven by major policy disappointment in California. The state legislature concluded its session after passing Senate Bill 492, but the final legislation omitted crucial wildfire liability reforms that utility investors had anticipated. Specifically, lawmakers failed to establish a long-term replenishment mechanism for California’s Wildfire Fund or decouple the fund’s solvency from utility liability caps. Key protective measures, including capping per-incident fund withdrawals and restricting insurer subrogation rights, were excluded from the finalized law. This legislative breakdown leaves regional utilities exposed to unmitigated liability risks without enhanced structural…