Regulatory Environment and Rate Case Outcomes Risk: Edison International operates in a highly regulated environment, and adverse decisions from the California Public Utilities Commission (CPUC) or changes in state energy policy could negatively impact authorized rates of return, cost recovery, and financial performance.

Wildfire Liability and Climate Change Impact Risk: The company faces substantial and ongoing risks related to wildfires, including potential liabilities for damages caused by its equipment, increased operational costs for mitigation efforts (like Public Safety Power Shutoffs), and the intensifying effects of climate change on fire season severity.

Interest Rate Fluctuation Risk: As a capital-intensive utility, EIX relies heavily on debt financing for its extensive infrastructure investments. Increases in interest rates could significantly raise borrowing costs, impacting profitability and the financial viability of future projects.