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Investing.com -- Bank of America analysts said Edison International’s (NYSE:EIX) long-awaited Section 315 filing offered “limited incremental” information, reinforcing prior disclosures without providing clarity on the fire’s cause.
The filing reiterated EIX’s stance that it detected a fault on a line several miles from the suspected ignition area, but voltage remained within design limits. The company also disclosed that re-energization tests on Jan. 19 showed flashes on a tower outside the preliminary fire origin area, though subsequent drone scans detected no hotspots.
EIX is continuing to investigate potential causes, including whether a de-commissioned Mesa-Sylmar transmission line may have been energized via induction. The company acknowledged that the investigation is complex, given the rarity of such ignition sources, and is updating its grounding practices and transmission maintenance policies.
Analysts noted that “the update did little to provide a clear leading candidate for the cause of the fire” and suggested that investors may be disappointed by the lack of resolution.
While the market appears to be pricing in EIX’s liability, BofA maintained its Buy rating, citing confidence in AB 1054’s liability protections should EIX be found responsible.