We recently compiled a list of 10 Cheap Utility Stocks to Buy According to Hedge Funds. Edison International stands third on our list among cheap utility stocks.
Edison International (NYSE:EIX), through its utility arm Southern California Edison (SCE), is prioritizing wildfire mitigation, electrification, and grid modernization to align with California’s regulatory landscape and clean energy goals.
A key initiative is the Wildfire Recovery Compensation Program for victims of the Eaton Fire, launching in fall 2025. The voluntary program offers expedited compensation for structure loss, business disruption, injury, and related damages. The company has enlisted experts Kenneth Feinberg and Camille Biros to ensure fair, prompt resolution while investigations into the fire continue.
To bolster infrastructure resilience, Edison International is undergrounding 63 miles of distribution lines, assessing 19 more miles, and deploying advanced automation technology to improve outage management and grid reliability. These upgrades are essential for wildfire prevention and integrating renewable energy.
Legislatively, California Senate Bill 254—passed on June 4, 2025, could allow utilities to use securitization financing for wildfire mitigation and electrification projects. If finalized by September, this bill would help the business recover investments more efficiently. UBS has responded positively, maintaining a Buy rating and $70 price target, citing Edison’s leadership in electric vehicle (EV) deployment.
With the highest EV penetration among California utilities, Edison International is playing a vital role in the state’s clean transportation shift. Its investments in EV infrastructure and renewables integration underscore its strategic importance in advancing California’s sustainability agenda.
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